An exploration of how how market volatility translates into long-term investment returns, with an emphasis on the idea that sustainable share price growth ultimately depends on two factors—revenue growth and profit growth. Companies need a supportive environment, both in terms of sector and broader economy, to grow sales, control costs, and convert revenue gains into higher profits.
US corporate earnings have grown consistently since World War II, with different sectors driving growth over time—from post-war housing and consumer goods, to globalised manufacturing in the 1980s–90s, and technology innovation in the past two decades. The discussion highlights the role of deep capital markets, venture capital, and ongoing R&D in fuelling this growth.
Technology is presented not as an isolated sector, but as an enabler across industries, with examples ranging from retail self-checkouts to cloud computing. The key takeaway is that a thriving ecosystem, strong innovation, and reinvestment in productivity are what sustain earnings and share price growth over time.
