By |2019-08-23T06:37:00-04:00August 23rd, 2019|Global Market Update|

Have you been to the ocean shore? Photo: Muhammad Light. Source: Pexels. The beach is a place of high energy. The ocean rolls in, wave after wave. There’s nothing to block the wind. Storms just increase the energy throughput. There’s something mesmerizing about going to the shoreline and seeing the surf. Whether it’s a beautiful sunny day or there’s dark clouds on the horizon, the ocean is a lovely place. It’s no surprise to see plants and animals disrupted by all the energy. Tidal [...]

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Growing National Income

By |2019-02-28T05:54:00-04:00February 28th, 2019|Global Market Update|

Why are some nations richer than others? Source: Pexels Some countries get rich and stay rich, while others always seem to struggle struggle. Economists have looked at this question and believe that three critical ingredients matter most of all: capital, technology, and well-trained workers. Not raw materials –l just look at Japan. They don’t have oil, minerals, or precious metals. Not access to a major port – consider Switzerland, a land-locked series of mountain ranges. And not any specific culture -- there are wealthy [...]

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Innovation Incubation

By |2019-02-05T22:33:55-04:00February 5th, 2019|Global Market Update|

Where do new ideas come from? Photo: Aamir Mohd Khan. Source: Pixabay There’s a story about the birth of Athena, the Greek goddess of wisdom. She wasn’t born normally. Instead, her father Zeus had an enormous headache. He implored the gods to provide relief, so one of them split Zeus’s head open – and out popped Athena, fully formed, fully dressed, and ready for battle. Since she came from Zeus’s head, Athena was thought to be the goddess of wisdom and technology. That’s how [...]

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Log-pile Games

By |2018-11-18T20:11:10-04:00November 18th, 2018|Global Market Update|

Sometimes things are more than they seem. Photo: Anonymous. Source: Bigfoto We cleared some land a few years ago. The forester did his cutting in the fall, skidding and stacking the logs up in the cleared area. The truck to take them to the mill didn’t arrive until several months later, though, waiting for the ground to freeze. In the interim, we had quite a recreational area – a perfect adventure-land for our young boys. We made sure that we were nearby and they [...]

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Fresh Faces

By |2018-11-12T11:50:32-04:00November 12th, 2018|Global Market Update|

Do you need a puppy? Photo: Chevanon Photo. Source: Pexels We have an older dog. Not that old, mind you. But getting there. She doesn’t have the same level of energy she used to. She sleeps more. When I get up early in the morning, she used to come over and lick my hand and ask for a treat. Now she ambles off down the hall to find a dark bedroom where she can get a little more shuteye. The kids have been on [...]

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Innovation, Competition, and Non-Competes

By |2018-08-02T07:51:23-04:00August 2nd, 2018|Global Market Update|

Why is California so prosperous? Map of US economic activity by metro area. Source: Bureau of Economic Analysis, Howmuch.net A map of economic activity in the US is telling. In our $20 trillion economy, New York City produces 15% of our production, but four cities in California produce almost 20%: San Francisco, San Jose, LA, and San Diego. The wealth amassed in places like Newport Beach is impressive. On a recent trip, I was struck by the forests of masts belonging to million-dollar yachts [...]

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Self-Driving Groceries?

By |2018-06-29T05:23:27-04:00June 29th, 2018|Global Market Update|

Remember WebVan? Photo: Mark Coggins. Source: Wikimedia The now-defunct grocery-delivery service has become an example of some of the excesses of the dot-com era. Executives with no experience in the grocery business were going to undercut and revolutionize how we buy groceries by offering consumers a check-the-box website and home delivery. The company was founded in 1996, went public in 1999, and declared bankruptcy in 2001. At its peak, they employed 4,400 people, had $180 million in sales, and served ten major metropolitan areas. [...]

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Falling Down, Getting Up

By |2018-05-30T06:02:11-04:00May 30th, 2018|Global Market Update|

What makes a successful innovation? Photo: Dani Simmonds. Source: Morguefile The modern world has been dramatically changed by its innovations: air travel, electric lights, telephones, automobiles, computers. These have had a revolutionary impact, changing not only how we do our jobs, but the jobs we do. Indeed, mastering the dynamics of innovation is critical for any company. Companies talk about innovation in their quarterly reports almost as much as they discuss earnings. But innovation is unpredictable. Doing new things in new ways upsets the [...]

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Bad News?

By |2018-05-24T06:30:01-04:00May 24th, 2018|Global Market Update|

Are traditional newspapers doomed? Photo: Florian Plag. Source: Wikimedia Ever since the first newsfeed appeared on the web, the traditional news business model – local business ads, subscriptions, and classifieds – was threatened. A few decades ago, newspapers were filled with lots of non-news items: real-estate listings, grocery store coupons, want-ads. These money-making inserts were bundled with a journalistic product that usually focused on a defined geographic area. Distribution was limited by the cost of physically delivering a bundle of paper. Gradually, each area [...]

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Jujitsu Economics

By |2018-04-02T06:57:36-04:00April 2nd, 2018|Global Market Update|

How do you make use of something else’s strength? Photo: Pixabay When Wikipedia first came out, many educators panicked. They were threatened by the universally accessible source of detailed information, and told their students not to use it for primary research. But a few clever teachers found a way to make use of the service’s own inaccuracies. They started assigning their students Wikipedia entries – not to cite, but to fix. A similar thing is happening in health care. We have more of our [...]

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