Inflation is gripping the nation.

Groceries are up. Lumber is up. Gas is up.

Seemingly everything is up right now.

It’s sending worries across the nation and the markets, and for good reason.

Many remember the inflation of the ’70s that brought stagflation: higher and higher prices on consumer goods, no growth and no end in sight.

The key difference here, though, is we have a remedy nowadays that we didn’t have back then…

That remedy is American technology companies.

Tech is deflationary by definition.

It makes goods cheaper, but it doesn’t take away buying power from the consumer.

As more innovations come along, more developments are made and more breakthrough techs are created…

Goods get more easily produced, logistics get streamlined and products that were once thought unattainable are now everyday items.

Tech leads the world forward and gets insulated from these price hikes because it creates that efficiency.

For instance, think about the grocery store you go to.

There’s a whole slew of different produce out there that has to be monitored carefully before it goes bad.

But I’m sure you’ve had experiences feeling the firmness of an apple or orange and realizing that it’s well past its due date.

That’s where AI can help.

When you think about tech in agriculture, your mind immediately goes to automation processes.

Watering crops, feeding livestock and milking cows all can be done via robotics.

But what people don’t think about are the incredibly complicated logistics that go into agriculture.

Because of this, there’s also an incredible amount of inefficiency in the food chain process.

Drone data gives farmers data on soil health, crop health and weather conditions, allowing them to rotate, sow and harvest crops as needed.

Then further along the process, AI can let buyers of these products know when there is a surplus allowing for restaurants to order food based on the supply. Furthermore, AI can let grocers and other retailers sell the food before it goes bad.

In all of these cases, AI tackles more efficiently making produce and allowing produce to last longer. This means more supply and less waste, which means cheaper goods in the end for the consumer.

This process gets extended to any affected consumer goods industry and creates better equipped sectors for when demand is high.

And what’s even better is these processes are getting more and more fine-tuned.

It’s the exact reason why you need to pay attention to tech stocks and specifically tech stocks that are leading in innovation.

Commodities are going to come under pressure from time to time…

But over a long enough timeline, technology leads society forward and makes it cheaper every day.

I’m still bullish on tech and the markets going forward into 2021.

And this retraction and chop means you can get the most innovative companies at a discount with this pullback.

Market cycles are natural, and you can bet that five, 10, 20 years from now tech will always be on top.

To a bright future,

Ray Blanco<