Dow Jones Reaches 20,000


Chase Raz

January 25, 2017

Today, the Dow Jones Industrial Average topped 20,000 for the first time. This is a very momentous occasion for anyone within the field of business. This development can be traced to Wall Street's optimism that the Trump administration is signaling itself as pro-business. Specifically, in this context, Wall Street is optimistic about the U.S. President's support for business deregulation.

Deregulation in its most classical sense is synonymous with market innovation. However, from a technology perspective, the exact opposite can be true. Technology, and other disruption-driven industries, are negatively impacted and experience higher barriers to entry for the market place, thereby reducing competition. In innovation-fueled blue ocean markets, a lack of regulation entices more-established industries to inundate new and emerging markets with funds that are subsequently used to identify potential disruptive innovators. These innovators are then acquired and either dismantled or sequestered.

Observe your investment vehicles and rejoice if you're taking part in these new market highs, but if you're in the technology sector, or are working to innovate or disrupt traditional markets, then beware. The old-money industries have found a politically ally. They intend to further existing market innovation through deregulation at the cost of bringing disruptive innovation to a grinding halt.