Short-Term Key: Neutral Long-Term Key: -6 (Neutral)

 

I must confess that this past weekend I was a little preoccupied by my son's college graduation. Nonetheless, the sight of all those young people, some of whom may be the future leaders of our nation, getting their diplomas, reminded me how crucial it is to draw attention now to the really big problems they will face – and, as investors, how profitable it will be to focus on real solutions.

 

For example, yesterday the Sunday Times featured a front page article on how little benefit humanity has gained from the decoding of the human genome. Ten years since the world celebrated the first draft of DNA code, we have yet to see the promised plethora of new cures for genetic diseases.

 

If you read my 1999 book, Defying the Market, you may recall that in it I discussed many of the limits to our technological approach to solving the world's problems. In particular, I pointed out that large-scale, computerized enumeration of possibilities – the approach used to map DNA, identify new superconducting molecules, or search for patentable drugs – was not likely to produce the needed solutions to the problems that would unfold in the future.