Notes to Know: Innovation Triumphs Over Economic Volatility


"If I'd have had more time, I'd have written a shorter letter" ~Blaise Pascal


Our colleagues at Alger Capital recently shared this insight: The source article can be found here.


Innovation Triumphs Over Economic Volatility

History has shown that Innovation flourishes in the face of a languishing economy:

Through the 1918-1919 “Spanish Flu” pandemic/recession, the economy faced devastating challenges. However, ownership of automobiles grew during this time at a double-digit rate.

  • During the 1950’s “Asian Flu” pandemic/recession, television ownership exploded.

  • Through the early 90’s recession, real GDP grew by only 4%, while personal computer penetration grew by 43%.

  • Through the more recent Global Financial Crisis of 2007-2008, Smartphone ownership exploded, and market-leading companies began to thrive.

In short, even in times of tremendous economic stress, there are innovations that bring opportunities to society…and investors as well.


Make It a Great Day!


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