The past weeks have been tumultuous for markets. Despite the wild ups and downs, I remain incredibly optimistic for the long term. What's driving my optimism? The answer is simple: Technology has become absolutely indispensable to virtually all of us, everywhere in the world.
Today, we all depend on technology. It's become our ubiquitous 24/7 servant, guide and resource. We use technology constantly. We interact with our tech every minute of every day. Many people even remain connected to tech after their day is over by using apps that monitor the duration and quality of their sleep.
Technology began as a support tool for business. Today, tech has evolved into a giant economic sector. By several estimates, tech is the now the third-largest chunk of the world's economy, generating nearly $7 trillion in spending.
Clearly, the tech industry is well-positioned for continuing success over the long haul. From my perspective, that's certainly good news. Knowing that tech will ultimately prevail keeps me from worrying about day-to-day or even week-to-week fluctuations in the stock markets.
In Friday's Tech News Digest, I noted that chip stocks were taking a beating. The companies mentioned in the item were AMD, Micron, Texas Instruments and NVIDIA. Yes, those companies are running into some speed bumps. But frankly, I don't see a cause for concern. The need for chips and microprocessors will continue growing as more billion of devices and millions of systems become part of the Internet of Things.
The rapid growth of the IoT along will drive tech spending in practically every part of the economy and at every level. Five years from now, it will be hard to find a device or appliance that is not connected to the Internet.
Everything will be "smart" and everything will be part of a larger network. Connectivity is the future of our civilization.
The exponential rise in connectivity will create surges of spending across every industry. When you consider how possibilities, it's hard to imagine a scenario in which tech doesn't emerge victorious.
I'm not saying that everything will be rosy. There will be rough patches, for sure. Markets will experience bad days and bad weeks. But the technology sector will remain strong and will continue to drive growth and spending across the board.
Last week, I shared eight predictions about the top tech trends that will impact economic markets and businesses. My predictions reflect an optimistic attitude that is firmly grounded in reality. As I wrote last week, we live in a world of interconnected digital technologies. As a result, the tech industry will continue to expand, and the value of technology investments will soar to new heights in 2019. That's my long-range forecast.