Saturday, September 06, 2008


I am enjoying the use of Google Chrome. The new browser has neat features. At first, I was frustrated that my Google Toolbar and Google Bookmarks did not transfer. After a day of use, I find the new browser simple to use and very worthwhile.

A smart investor I follow is not excited about Chrome. He sees it as just one more free service to be offered by Google. Another service that does not add to the profit line.

Still, he likes Google because it has gotten cheap relative to
earnings and earnings growth. I like it for its potential.

I see a sea change coming. I believe groups, such as Churches, are about to take the next communication step. Google document sharing is about to hit the exponential network growth phase. When only a few members of a Sunday School Class share documents, there is a reluctance to distribute documents via the Internet. Once the majority discovers the ease and the savings, the whole group shares. Pretty soon, a related group such as a Men's Bible Study Group catches the network bug.

I really like the new Picasa face recognition feature. Technology is grand.

Tech stocks do well in the early expansion phase of the economic cycle. We are currently in the late contraction phase. Central bankers are sill using the bond market to suck inflation out of the system. When the bond market rally is over, traders will not be able to get out of bonds fast enough. They will pile into consumer cyclical stocks (everything from Auto's and Cable TV to Retailers) and then into technology. Technology is as cheap as it has been in a long time. Google is going to do well!