S&P 500, Dow Jones Global ex-US, Gold, Bloomberg Commodity Index returns exclude reinvested dividends (gold does not pay a dividend) and the three-, five-, and 10-year returns are annualized; and the 10-year Treasury Note is simply the yield at the close of the day on each of the historical time periods.
Sources: Yahoo! Finance; MarketWatch; djindexes.com; U.S. Treasury; London Bullion Market Association.
Past performance is no guarantee of future results. Indices are unmanaged and cannot be invested into directly. N/A means not applicable.
WHAT DO YOU KNOW ABOUT INNOVATION? Innovation is powerful. When new technologies take hold, they can revolutionize products, practices and industries, making older technologies obsolete. As a result, companies must adapt to remain competitive or disappear.
In economics, this concept is called creative destruction. It was introduced by economist Joseph Schumpeter in 1942. In his book, Capitalism, Socialism and Democracy, Schumpeter explained that
the cycle of obsolescence and renewal is an essential aspect of capitalism that drives economic growth. See what you know about innovation and creative destruction by taking this brief quiz.
1. Investors are enthusiastic about an innovation that has helped drive stock market returns higher this year. What is it?
a. Vertical farming
b. Air taxis
c. Artificial intelligence
d. Quantum computing
2. One innovation resulting from the COVID-19 pandemic was remote work. How did this affect the economy?
a. Demand for office space fell
b. Employment among workers with disabilities rose
c. Hotel stays lengthened as people combined business and leisure
d. All of the above
3. The World Intellectual Property Organization’s Global Innovation Index identifies the most innovative economies in the world. In 2022, which country was the most innovative? (This country has led the pack for a dozen years.)
a. Switzerland
b. United States
c. Sweden
d. United Kingdom
4. Which of the following innovations resulted in creative destruction?
a. Streaming services
b. Assembly lines
c. E-commerce
d. All of the above
Weekly Focus – Think About It
“They say I'm old-fashioned, and live in the past, but sometimes I think progress progresses too fast!”
—Dr. Seuss, author
Answers: 1) c; 2) d; 3) a; 4) d
|