Apr 2019
Given the lumpy nature of major innovations, it should be no surprise that the economic growth that derives from innovation would be similarly lumpy. Put differently, don’t expect consistent 10% annual returns. Indeed, don’t even expect consistent five-year or ten-year investment returns. Moreover, while investment returns are driven in good part by economic growth, these returns can run better or worse than underlying economic growth over various periods of time. Ultimately, however, economic growth and investment returns march to the beat of the same drummer.