The principles of intelligent investing encourage investors to follow the smart money. Currently, many markets are at or near all-time highs. Many are regretfully looking back at the missed potential; others are only now beginning to invest in these markets in hopes of catching a continuing trend. But savvy investors who analyze future trends and anticipate revolutionary opportunities are already reaping the benefits and planning their following allocations.
Here are three trends you should be paying attention to if your goal is to invest in technologies and industries with real disruptive potential.
Deep Learning and automation
In the past, research in robotics and artificial intelligence (AI) focused heavily on automating manual jobs or increasing the efficiency of existing solutions. But over the last decade, there have been significant advances that enabled the focus to shift towards deep learning. This research focuses on creating systems of artificial intelligence that are capable of building on the information they already have and learning from it. These capabilities allow AI systems to develop new solutions or increase the efficiency of existing solutions exponentially quicker than humans. As artificial intelligence develops to parallel the human capacity for critical thinking and learning, the variety and complexity of the jobs that could be automated or improved will increase. This change will be relevant for every industry. Examples range from finance and fintech (improved historical analysis and decision-making) to medicine and pharmaceuticals (data-aggregation and big data analytics). Companies that have invested in increasing their AI capabilities are outperforming their peers. One can expect these companies to continue doing outperforming competitors as the technology becomes more powerful and relevant.
Connectivity and decentralization
High research and development costs act as significant obstacles to developing revolutionary digital products. However, once created, the marginal cost of expanding them to new clients or editing/improving them is simply the electricity and bandwidth it takes to send the data. As bandwidth and computing power become cheaper and more widespread, more people will gain access to the digital world and become participants in digital economies. Rolling out products and services to these clients is a much easier task for digital solutions providers since adding more bandwidth is an almost entirely negligible cost compared to setting up brick and mortar operations in a new location or increasing production capabilities of physical goods and services. With companies like Starlink developing solutions to connect those currently offline, everyone worldwide will soon have access to high-speed data at almost no cost. In addition to the obvious growth this will cause in existing fields like e-commerce, there are also opportunities in new areas like DeFi and self-custody of financial assets. These fields should benefit from heavy growth as more individuals gain access to the digital environments enabling them to store, invest, borrow, lend, and trade funds and assets without needing to rely on intermediaries and third parties to build the centralized systems previously required to do so. Another example of potential investment comes in the form of digital wallet providers, which provide the tools that enable these interactions in terms of exchange and self-custody.
It is a fact that almost all major currencies are being debased heavily due to monetary and fiscal decisions. Moreover, it also a historical fact that as the supply of money increases over time, purchasing power decreases. With this devaluation picking up pace recently, investors are looking to scarce assets with limited supply and limited potential for supply growth as a way to store the value of their wealth over time. These assets vary depending on the goals and objectives of individual investors; They range from gold and bitcoin to luxury watches and rare artwork. Scarce assets are of themselves good hedges against currency debasement. Moreover, investors can find opportunities in providing custodial services to large institutions or building platforms that give retail investors access to the markets they trade in.
These are only some of the trends that seem to have the highest disruptive potential in the upcoming years. What is more important than investing in these trends is knowing how to gain the information needed to spot the opportunities and find ways to benefit from them in the future as technology continues to evolve.
Reach out to AIX Investment Group for a professional advice on your investment and we will be happy to appoint one of our Financial Advisors to guide you through your journey of financial independence.