The New Digital Economy

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The New Digital Economy

• Miklos A. Vasarhelyi

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A brave new world?

• Some argue that a new economics exists
• no recession and two digit growth
• traditional economics does not apply
• Valuations have gone through the roof
• DJs traditional P/E ratio is 13-gt17
• Current average market valuation is around 30
• but is bi-modal

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Corporate Valuations

• From BusinessWeek

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Trouble brewing in the US and Japan (maybe??)

• From the Economist

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Opportunities for China

• Inexpensive highly skilled labor
• Increased connectivity
• Obstacles
• language
• written language
• distance

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