The choices facing investors are daunting - to stay on track and miss out or take a leap into almost unimaginable change.
Investors who take the blue pill will stick with traditional industries. Some will resist the hype machine on tech disruption. Others know that picking long-term winners from technology disruption is like catching lightning in a bottle – dangerous and near impossible.
At night, you slip into your digital avatar and buy a pair of digital shoes that has a non-fungible token that certifies their uniqueness. Or you use an NFT to get extra content from your favourite movie, music or sports star. Perhaps you use VR to road-test the accommodation and itinerary of your next holiday, or plan the fittings for your new house.
It’s too early to pick long-term winners from trends like Web 3.0 and the metaverse, says Wheldon. “It’s not clear to us yet who the winners will be. On a risk/reward equation, the best strategy is still to invest in the tech giants, such as Microsoft Corporation.”and bond yields. If interest rates rise faster than expected, expensive growth stocks, such as big tech, could underperform. Investors who want exposure to disruption via tech giants should buy these stocks during market corrections.
Here are 14 disruptive trends that will quicken in 2022. Some are well-established and provide foundations for new trends. Others take investors down a technology rabbit hole that gets deeper each day – and has potential for almost unimaginable change.Alex Pollak, chief investment officer of Loftus Peak, says the fifth-generation mobile network – a new wireless standard designed to connect almost everyone and everything – provides the architecture for disruption.
“The tech giants need more powerful chips that can accommodate huge data volumes that are being captured through AI,” he says. “Our industry discussions suggest these application-specific chips might have to be redesigned every nine months, such is the growth in AI. As a society, we have barely begun to exploit the problem-solving capabilities of AI.”
Wheldon says the ability to harness data will provide tech leaders with increasing, rather than diminishing, returns of scale. “Classical economic theory says returns diminish once a company gets to a certain size. But the ability to capture and analyse data is doing the opposite for tech giants: it’s making them more powerful and increasing their returns because they receive more and richer signals from their customers.
Montaka’s Andrew Macken believes 2022 will see the rise of creator marketplaces that use a suite of tech tools to engage and monetise their fan base. Substack, an American online platform that provides infrastructure to support subscription newsletters, is an example. Loftus Peak’s Pollak says 3D business meetings will be an early application of the metaverse. “If you think of a Zoom meeting now, in the metaverse people will feel like they are physically in the room together. This is very important for work that requires a lot of collaboration and has design challenges. People will feel like they are touching a product prototype, for example, and moving things around in the meeting.
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