The current investment climate

We recently published "The Investment Climate, April 2008" in the commentary section of the main Taylor Frigon Capital Management website.

Not long ago, we wrote a blog post which described the over-allocation of capital to real estate and mortgage-based areas, much of which was a reaction to the severe market correction of 2000 to 2002. Fueled by the Fed's excessively long period of low interest rates (which were also a reaction to the severe market correction of 2000 to 2002), investors from large to small acted as though the very real progress in technology for the sharing of data over the internet (including over mobile networks) had been a giant dead-end, and therefore the progress in that direction was put on "pause" for a few years while real-estate and related asset-backed securities got all the capital.

There are many indications that the "pause" button has been released, and that numerous new applications of the expanding ability to share all kinds of data (including video data) are taking off for businesses and consumers.

for later blog posts dealing with this same subject, see also:

• "The current investment climate, July 2008" 07/10/2008.
  

• "Don't fear the current recession drumbeat, revisited" 07/18/2008.
  

• "The long shadow of the Y2K bug" 08/22/2008.
  

• "It's a panic, not a Great Depression" 01/21/2009.

• "Managing Investments in the New Era" 02/18/2009.