Shine Trader Live reports:
Bank of America strategists have released a list of tech “moonshots” to help investors catch the next tech revolution and avoid missing the next Amazon or Apple.
Strategists led by Haim Israel, head of global thematic investment research at Bank of America, say the entire Collection of the New York Public Library could be downloaded from a sixth-generation network in 20 seconds; And wireless electricity, which could fundamentally change people’s lives, may not be as far away as people think. Israel wrote in a note to clients:
“If it fails to identify the future technology, could mean missing the next great revolution, the science and technology change the speed of the business, many of the techniques of using, such as a smartphone or renewable energy – has been faster than experts predicted for decades, because our thinking is linear, usually but progress is exponential.”
Bofa believes that moving to the next change as quickly as possible is the key to success in equity investing. Bank of America cited a study by Hendrik Bessembinder, a professor at Arizona State University, which found that only 1.5 per cent of all wealth creation in global equity markets over the past 30 years came from companies.
In addition, as innovation accelerates, so does the pace at which existing firms are being replaced. Take the life span of companies in the S&P 500. In 1958, the company’s average life span was 61 years. By 2016, that had shrunk to 24 years, and is expected to halve to 12 years by 2027, according to BofA.
Bofa’s forecast comes amid growing interest in technology-themed investments. Spurred by the success of Ark Investments’ fund last year, niche-based ETFs have attracted $42bn in new money so far this year, more than all of 2020’s inflows, according to data.
For Mr. Israel of Bank of America, the rewards of investing in the stars of tomorrow are not trivial. According to his team’s estimates, the current market for the 14 technologies expected to explode in the future is just $330 billion. These assets will grow at 36 per cent a year by the 2030s, to a total value of $6.4tn. Historically, s&p 500 earnings have grown only 6% a year. The report reads:
“These explosions are likely to transform and disrupt multiple industries, contributing to the next big cycle of technology-driven growth.”
Reprint indicated source：Shine Trader Limited Live information