New tablet sales are expected to keep booming. Tablets are the fastest adopted consumer electronic device – EVER. More tablets = more demand for WiFi wireless bandwidth = more multi-screen video & TV Everywhere = more mobile marketing.

A recent note by BI Intelligence had the following remarks about tablet sales . . . “Global tablet sales will exceed 450 million units by 2016, according to a new report from BI Intelligence.  Global tablet sales in 2016 will exceed the number of PCs currently sold per year (~350 million) and make tablets a $130+ billion market. The increased in tablets sales will be driven by falling prices and greater penetration into new markets, such as the enterprise, education, and emerging markets”.  The implications for our portfolio cannot be overstated.  We remain invested at multiple touch points for this phenomena.  Jeb Terry, Sr. Aug 26, 2012

Aberdeen Investment Management – a guide service for micro-cap technology investment

Investors have withdrawn all the Equity mutual fund inflows of the tech boom and stashed the money and more into Bond funds. When and if this trend reverses – and it will – there will possibly be an equity bull market of epic proportion.

No wonder it’s been tough sledding in the equity market since 2008! – it’s hard for equity values to rise when equity mutual funds have experienced severe and persistent outflows.  The following chart is courtesy of Bank of America Merrill Lynch.  It displays well the fact that investors have cumulatively withdrawn all the equity inflows that fueled the tech boom in the 90’s.

 It seems reasonable to assume that the withdrawals will turn back into inflows as we see developments such we have experienced so far in Q3 as the S&P 500 has appreciated 4.1% and is up 12.8% year to date.  Better yet – the S&P 500 is up 25% from Q3 2011.

 History has shown that equity mutual funds tend to have increasing inflows following above average market performance.  The current year S&P 500 performance is over 3X above the average performance going back to 1970.  Hence it is reasonable to expect equity fund outflows to at least slow down if not in fact reverse to inflows as a consequence of the strong stock market performance.  Of course money flowing into equity mutual funds has a self-fulfilling effect as the equity markets tend to rise from the positive money flow.

 Could it be that we are in a sustainable bull market?  The odds that the answer is “YES” are improving.   Jeb Terry, Sr. Aug 17, 2012

Aberdeen Investment Management – a guide service for micro-cap technology investment

“The Best Market Indicator In The World Continues To Work Perfectly” – Stocks trending up.

The best market indicators are ones that derive from things that are counted vs. derived from questions that are asked such as surveys.  The following chart was produced by the St. Louis Federal Reserve and published on the Business Insider’s Money Game page.  This is what the author had to say . . .“The S&P 500 (red) and initial claims flipped over (blue) have moved together very nicely for over 5 years now. This is the nicest signal we have that the market continues to operate on the fundamentals of the economy, and most of everything else we have is noise.”  The inference is that the market has risen and looks to continue to rise as long as the Initial Unemployment Claims continue to improve –albeit slowly.  To be sure – at some point they will level off once employment picks up to a higher rate of growth but that would be a good thing –eh?  Jeb Terry, Sr. Aug 5, 2012

Note that the S&P 500 is measured on the left axis.  Initial unemployment claims are on the right axis.  Courtesy of Business Insider.

 Aberdeen Investment Management – a guide service for micro-cap technology investment