How Technology Impacts Global Economies

New paper from Principal explores why investors need to pay attention

DES MOINES, Iowa--(BUSINESS WIRE)-- From simple machines to super computers, technology continually increases productivity. But it also has far-reaching impacts on economies around the world—impacts that are often unseen and difficult to measure.

In a new paper, “The High-Tech Lever”, Jim McCaughan, president of global asset management at Principal Financial Group®, examines how technology is affecting global economies and how those effects may influence investors in coming years.

“Current economic measures may be unable to fully capture technology’s influence,” said McCaughan. “That is forcing businesses and investors to rethink their strategies.”

The paper explores the problem of measuring technology’s impact. It also looks at a variety of ways technology affects businesses, investors and economies—including its deflationary influence, which keeps interest rates low. It’s a reality McCaughan said investors need to face.

“It may be that a majority of investment professionals around the world have worked almost their entire careers under an extended, but temporary, spell of high interest rates,” said McCaughan. “Asset managers, insurers, annuity providers, investors and other long-term savers might do well to recognize and adjust to this new ‘lower-for-longer’ regime.”

The paper debuts at the 2016 Milken Institute Global Conference. For the full paper and more information on the conference, visit www.principal.com/milken.

About Principal®Principal helps people and companies around the world build, protect and advance their financial well-being through retirement, insurance and asset management solutions that fit their lives. Our employees are passionate about helping clients of all income and portfolio sizes achieve their goals – offering innovative ideas, investment expertise and real-life solutions to make financial progress possible. To find out more, visit us at www.principal.com.

Principal, Principal and symbol design and Principal Financial Group are trademarks and service marks of Principal Financial Services, Inc., a member of the Principal Financial Group.

View source version on businesswire.com: http://www.businesswire.com/news/home/20160503006622/en/

Principal Financial Group
Cait Suttie, 515-490-6381
[email protected]

Source: Principal Financial Group

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