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James E. Thorne comments on the recent data showing a decline in Canadian labor productivity for Q1 2026, recording a 0.5 percent decrease.
He suggests that this trend points to challenges for the Bank of Canada, implying concern about the central bank's direction, and notes that a drop in productivity growth tends to lower the natural interest rate (r*).
Thorne has previously explored how accelerating digital technology could reshape S&P 500 earnings growth, noting potential changes in traditional limitations in an earlier analysis. He also discussed the impact of the AI super cycle and set an S&P 500 target of 14,000, focusing on developments across sectors including MU and SpaceX in a separate report. These views provide context for his current comments on labor productivity and central bank policy.