Main Street, Internet Style

Is Amazon consuming the consumer?

It sure feels that way. Over the past five years they’ve grown and grown and grown, while traditional retailers like Sears, Radio Shack, and JC Penney have struggled. Office supply stores like Staples and Office have really been hit. In fact, foot traffic is down in all the malls:

Source: WSJ, 1/16/14

Retail is changing. It’s just more convenient to order stuff from the internet than to go to a store. As smartphones with shopping apps become more ubiquitous, buying becomes ever-easier. Online shopping is a massive flood that’s sweeping traditional retail away. The movie “You’ve Got Mail” now has an ironic twist: the mega-bookstore exec has no idea his anonymous email account will eat his job. Just look at what happened to Borders.

But it isn’t just retail. Facebook has become Good Morning America; Twitter what real-time journalism used to be; and Hulu and YouTube are devouring traditional TV.

The world is adjusting to the online environment by eliminating old jobs and adding new ones. 130 years ago thousands of cowboys lived in line camps, keeping the cattle from straying. The line camps went away when barbed wire made it a lot easier to manage the herd. But necessity is the mother of invention. Those cowboys found new work in a new, more productive economy.

The internet is doing the same thing today, making life more convenient for billions of consumers. I just haven’t figured out yet how to get a haircut with my iPhone.

Douglas R. Tengdin, CFA
Chief Investment Officer
Phone: 603-224-1350
Leave a comment if you have any questions—I read them all!

Follow me on Twitter @GlobalMarketUpd •
By |2017-07-17T12:34:15-04:00August 28th, 2014|Global Market Update|0 Comments

About the Author:

Mr. Tengdin is the Chief Investment Officer at Charter Trust Company and author of “The Global Market Update”. The audio version of each post can be heard on radio stations throughout New England every weekday. Mr. Tengdin graduated from Dartmouth College, Magna Cum Laude. He received his Master of Arts from Trinity Divinity School, Magna Cum Laude and received his Chartered Financial Analyst (CFA) designation in 1992. Mr. Tengdin has been managing investment portfolios for over 30 years, working for Bank of Boston, State Street Global Advisors, Citibank – Tunisia, and Banknorth Group. Throughout his career, Mr. Tengdin has emphasized helping clients manage their financial risks in difficult environments where they can profit from investing in diverse assets in diverse settings. - Leave a comment if you have any questions—I read them all! - And Follow me on Twitter @GlobalMarketUpd

Leave A Comment