Markets made little headway over the past week, finishing roughly where they started. It was a week that served to remind investors that improvements may be met with setbacks, both with respect to the coronavirus and the economic recovery. We offer some key thoughts on the week that was.

Seemingly, there was a reversal of fortunes this week with respect to global coronavirus trends. The U.S. experienced some stability in contrast to the rest of the world which has been faced with a resurgence.

Positively, the U.S. witnessed stable to modestly lower rates of new infections in some of its most populated states, including California. Notably, some states across the Midwest appear to be experiencing rising cases, though the levels are not alarming at this point.

As the old saying goes, a picture is worth a thousand words. Below is an image taken at Niagara Falls. There are two boats, one boat is from the American side of the falls operating at the NY State required “50%” capacity, the other is from the Canadian side with the mandated maximum of 6 passengers.

Source: Reuters

The second quarter earnings season is roughly half way complete. Thus far, results from companies in Canada, the U.S., and Europe have been in-line to slightly better than expectations on average, helping reassure investors to some extent. The large and growing technology sector has garnered a lot of attention and focus, and deservedly so, as results confirmed what many investors already understood – these companies’ business models are well positioned to deal with an environment that remains far from normal. Yet, revenue and profits from companies across a range of industries also followed the positive trend of being as good as or better than investor expectations.

Despite the positive narrative, significant challenges persist. Many management teams suggested visibility remains limited and difficulties still lie ahead once government aid programs expire. Furthermore, many entrepreneurs with small and medium sized businesses are struggling with restrictions imposed by governments and overall weak demand.

Pressure continues to mount on the U.S. government to come up with another round of stimulus. But finding some compromise is clearly proving to be more challenging than expected. Nevertheless, we continue to believe some resolution will surface in the not too distant future.

Top 10 technology trends

The top 10 technology trends that we have identified include: eCommerce, machine learning (ML) & artificial intelligence (AI); cloud computing & Software as a Service (SaaS); Internet of Things (IoT); connected & autonomous vehicles; cybersecurity; data protection & privacy; blockchain; microservices & APIs; and augmented reality & virtual reality. These 10 technology trends represent multi-billion dollar markets and would influence technology spending for the next decade. The most impactful trends include:

eCommerce: According to eMarketer, Global eCommerce spending is expected to grow 17% compounded per annum to $4.5 trillion in 2021.

Machine learning (ML) & artificial intelligence (AI): 62% of organizations plan to deploy artificial intelligence over the next 24 months, according to a publicly available survey by Gartner. (Gartner,2019)

Cloud computing & SaaS: Worldwide SaaS spending is expected to grow 16% CAGR from $80B in 2018 to $144B in 2022 according to Gartner. (Gartner,2019)

Internet of Things (IoT): IoT Analytics expects the number of IoT devices to grow 17% compounded per annum to 22B by 2025.

Connected & autonomous vehicles: Allied Market Research forecasts that the global autonomous vehicle market will grow to $557B by 2026, up 39% CAGR.

This week’s tip focuses on the great outdoors! With the long weekend ahead and good weather being forecasted, some refreshing outdoor adventure might be on the horizon. Whether you’re new to the wild or an experienced camper it is always good to have a list of essentials for surviving in the great outdoors. Ontario Park’s has an excellent checklist of good items to have for your camping trip. Take a quick look to make sure you have everything you need!

Have a good weekend and enjoy the nice weather.

 

Works Cited

“Gartner Forecasts Worldwide Public Cloud Revenue to Grow 17.5 Percent in 2019.” Gartner, www.gartner.com/en/newsroom/press-releases/2019-04-02-gartner-forecasts-worldwide-public-cloud-revenue-to-g.

“IT Spending Forecast, 1Q19 Update: AI - Use It, Build It or Sell It.” Gartner, www.gartner.com/en/webinars/12001/it-spending-forecast-1q19-update-ai-use-it-build-it-or-sell-it.