11.7.21: Stock Market Research, College Degree Requirement Drop-Off, Infrastructure Revamp, and Semi-Conductor Updates

Flow and Ebb of the Stock Market: New study lays out theory, defining market fluctuation. The theory revolves around cash flow in and out of market. For every dollar that goes into the market, it shows a response of $5 increase; the reverse effect is also true for a dollar taken out: when markets are bullish, more people tend to buy in, causing the market to continue to compound upon itself. The research performed, shows the market rise, share buybacks and government stock purchases are potential market catalysts, as shown in the study by: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3686935

College Degrees: Are now less important for the labor market than two years ago. While education is what moves us forward, the requirement for degrees has been reduced by nearly 16% for many job occupations – reported by EMSI Consultant group. Employers are hamstrung by the current market; an ease in restrictions and barriers is assumed, however, in the future, the restrictions may return. Restrictions are introduced in a labor market where employers are able to be more selective. Economists do not expect the labor market to return to pre-pandemic levels. Open hire events continue to represent the needs: Manufactures, retailers, and hospitality business continue to lower requirements. The labor market is so shell-shocked that many are getting second and third chances to come back to their former employers after leaving them. The employee now has the ability to show up as they choose. The current economy will be lifted by those able to be creative in their problem solving: Finding Solutions to Retention.

Semi-Conductor Shortage: Growth in demand has stemmed a semi-conductor shortage. The supply remained consistent, however, due to a growth in use by technological advancement. Advanced technology has made the demand for more sophisticated chips rise; a rise that the semiconductor’s producers are doing their best to fulfill. The cost of equipment for FABs (Fabrication factories) has increased. Used equipment from 1995 – Lithography – has increased in price from $100k to $1.7 million: 2014 to 2021 – respectively. The cost and planning for a new FAB presents a new problem; for now, prioritization and promises are driving the semi-conductor chip market.

Infrastructure: The Goal Is to Increase economic growth by 1.9% per year. Current economist believe infrastructure done properly will allow for an overall gain to productivity and output, by the entire country. Some stand out points that I realized: Internet to un-serviced areas, larger array of EV chargers, and up to an increase of 560,000 jobs: The goal is to reduce unemployment and start to pull the economy into a new level of development.

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