Regardless of the uncertainty around markets in the short term, there is one reason I will always be extremely confident in the long-term prospects for investors and excited about the future.
Technology.
But before I talk about what’s ahead, just think about the way the world has changed in the past 20 years. There are a whole range of technologies and platforms we use every day that didn’t even exist back then. Go back to 2001 and we were using dial up internet, the iPhone wasn’t invented yet, there was no social media, and Amazon was only selling books. Fax machines, The Yellow Pages, calendars, diaries, rolodex were standard in the office and DVDs, CDs at home. It is incredible.
The list of companies that did not even exist back then but today are household names is staggering. Facebook, Instagram, YouTube, Uber, Tesla, Twitter, Zoom, Spotify. Companies such as Google, Amazon and Netflix were only a few years old and not nearly as advanced.
A lot has changed in just 20 years.
In my opinion, the change is only just starting. The advancements we are going to see in the next 10-20 years will change the world even more than we have seen in the last 20 years. There is a ground swell of innovation and technological advancement coming. These trends will further accelerate the pace of change and disruption and their convergence will make it exponential.
Automation, robotics, energy storage, artificial intelligence, blockchain, the evolution of the metaverse, genomics and DNA sequencing are some of the most important advancements that we will see in our lifetime. They are no longer the domain of science fiction, they are very real, and will change the world forever. It will all be mainstream much sooner than you expect.
For investors, every company you hold will be impacted by these trends in the years ahead. Every investment. It’s also not just about the opportunities emerging in the companies directly involved in these technologies. These are opportunities for existing companies that will change the way business is done, reducing costs significantly and increasing productivity massively.
I genuinely believe that we are on the cusp of one of the most exciting periods of technological advancement in history. As investors its critical to keep your eye on the long-term prize. The great companies of the future will realise their potential despite any economic head winds; and in my opinion many of the companies that are emerging as the leaders of tomorrow are hiding in plain sight.
In the coming weeks I will write more on these technological trends and some of the industries that will benefit most. I will also outline my thoughts on companies I think are best positioned to profit from these trends in the years ahead.
This information is of a general nature only and may not be relevant to your particular circumstances. The circumstances of each investor are different, and you should seek advice from an investment adviser who can consider if the strategies and products are right for you.