Kirkland Capital Chairman and CEO Kirk Yang nails it. Tech demand will be weak due to the replacement cycle. Everyone bought cell phones and new computers to help cope with the pandemic and they won't replace them for another 3-4 years.
That leaves the other driver of profits — new products, but phones and computers are mature technologies.
The U.S. trade war with China that started several years ago has taken on measures of national security and not mere commercial sanctions.
High-end semi conductors are not made available to China and software, manufacturing equipment are two more choke points to slow down China's development of information technology that modern warfare is based on.
China will still have market access to mid-level chips increasingly used in consumer items. Yang thinks that Asian manufactures will move heavily into the manufacture of electric vehicles as the next big market.
This suggests that significant price drops will trigger the substitution effect in the economy and we will go electric sooner than we think.
But what about the cost of electricity? Saskatchewan has the highest electrical bills of any Canadian province.
But what about the cost of electricity? Saskatchewan has the highest electrical bills of any Canadian province.
Over 30% of total electrical demand is produced by burning lignite coal, the dirtiest coal on the planet. Scott Moe's threats of insurrection are based on his attempt to nullify the Federal law that demands the burning of coal for the production of electricity cease by 2030.
The production and sale of electricity in Saskatchewan is a government monopoly. Monopolies, be they public or private, suffer from the same deficiencies: they become rent seekers; they don't invest in new technologies — they end up not giving consumers what they want. #skpoli
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