Information Technology

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Artificial Intelligence: To Infinity & Beyond!

May 5, 2026 4 min read paid

Before the Age of AI, economists were taught that there are only three factors of production, namely, Land, Labor, and Capital. The job of economists is to optimize the allocation of these scarce resources to maximize output (i.e., real GDP). Now, economists should recognize that there is a fourth factor of production, namely, Data. This resource is unlimited. But until AI, it wasn't very useful because it

Ed Yardeni
Elias Griepentrog

INFORMATION TECHNOLOGY: Creative Destruction On Speed

Apr 25, 2026 4 min read

We lowered the S&P 500 Information Technology and Communication Services sectors from overweight to market weight on December 7, 2025. We did so because the two sectors together accounted for 45% of the S&P 500's market capitalization (chart). We were also concerned about the mounting uncertainties regarding the rate of return on hyperscalers' massive AI investments. Since then, investors have concluded that the

Ed Yardeni
Toby Hearst