A Closer Look at the Tech Revolution; the Build-Out Phase

As the world population worries about the consequences of global warming, the shaky financial system, the scary rate of unemployment and problems associated with gender inequality, and Brexit, it may fail to notice one important detail – the beginning of a new phase of the tech revolution. Unfortunately, while this is the most critical stage of the technology revolution, the mainstream media is blind to it. Now, more than ever, tech revolution is so much alive, and the third phase is just beginning.

The industrial revolution was born during the 1920s. The bulls in the stock markets back then were from the automotive, aviation, steel and radio industries, and the economy experienced tremendous growth. The year 1929 brought with it a turbulent phase. The leading industries went through a dip for the next few years that followed, they hit rock bottom and then began rising slowly. The extended rise saw its end in a build out phase that happened between the 1930s and 1950s.

The foundations of the hardware and software programming were formed in the period between the 1970s and 1980s. The coming of the Internet accelerated the industry further in the 1990s. Then came the highly anticipated dotcom boom in 2000. The period saw the formation of many internet based companies. In as much as the period was marked by growth, the bursting of the dot-com bubble caused a crash of the many stocks that had done so well during the 1970s to 1980s.

The build-out phase is finally here with us, and just like the previous industrial revolution, we are looking at yet another 10-20 plus years. The phase took off in 2013 with major semiconductor indices rising and then bottoming for the next two years, and consequently setting a panic mood in the entire stock market. In November 2015, the semiconductors bounced back performing much better than they did during the dot-com period.

Clearly, the global economy is better off with the semiconductors taking the driver’s seat. Besides, they are the backbone of a tech revolution, and more so, one propelled by connected devices with the potential to get everything moving. A close observation of the key semiconductors stocks and technical charts for the past sixteen years reveals a bullish behavioral pattern where bases for greater growth in future are being formed. Other fundamental technology stocks such as Microsoft, Priceline Group, and Facebook are showing similar patterns.

We should not ignore IPOs in the new and emerging sectors that help to shape consumer behavior. Take for instance Match Group. This online dating stock is spearheading the use of dating websites and apps. Since its November 2015 IPO, shares have doubled. The outstanding potential of stocks such as Match Group is just a tip of an iceberg. More is yet to come.

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