Investment strategy: 14 “Moonshot” technologies to watch
- Bank of America’s list of 14 future technologies includes 6G, the metaverse, and flying cars.
- They said the value of these technologies could rise from $ 330 billion to $ 6 trillion in a decade.
- Insider details potential investment opportunities.
Growth investing has dominated value investing over the past 30 years. According to a new report from Bank of America, just 1.5% of companies generated the full $ 56.2 trillion in net wealth in the global stock market during that time period.
“The financial sector is primarily fueled by the returns of a very small portion of disruptive companies,” said a team led by the bank’s head of global thematic investment research, Haim Israel. “Understanding which technologies may arrive much sooner than expected and distinguishing which ones will become disruptive is key for a financial industry. “
“The rate at which these themes are transforming businesses is rapid,” they added. “Imagine investing in the Internet before the dot com boom.”
Bank of America has listed 14 potential investment “moonshots”, including 6G, the Metaverse, and the Quest for Immortality. They estimated that these technologies could be multiplied by 18, from a current valuation of $ 330 billion to $ 6 trillion by 2030.
“Moonshots are radical technologies that could change our lives and accelerate the impact of global megatrends,” the Israeli team said. “They are not as far into the future as you might think.”
“Failure to identify future technology today could mean missing the next big revolution,” they added.
Insider lists the 14 future technologies of the bank, divided into four themes: computer technology, human technology, consumer technology and green technology.
6G will represent the next generation of telecommunications networks, surpassing 5G with download speeds of up to 1TB per second. This is equivalent to downloading 142 one-hour movies in just 1 second.
The bank said 2028 will be a major milestone in this area, as this is the estimated date when 5G data networks will reach full capacity.
“At current average global mobile speeds, it would take around 181 million years to download all data from the Internet,” the Israeli team said. “That drops to 838,000 years on 5G and only 17,000 years on 6G.”
Bank of America also stated that Emotional AI will increase over the next decade. It is about improving the ability of technology to interpret human emotions.
Global research firm Gartner has estimated that personal devices will know more about a user’s emotions than family members as early as next year, which the bank says demonstrates the growing prevalence of this theme.
Brain-computer interfaces (BCI) have been identified as another potential investment plan.
A BCI connects a human’s brain to a computer to increase their communication skills and thoughts. Human trials began this year.
“The first minimally invasive BCI human clinical trials enabled patients with ALS to text, bank, shop and e-mail online,” the bank said. “A brain-to-brain interface has also already allowed a human to control another’s hands through their thoughts.”
Developing companies bionic humans could skyrocket over the next decade. The bank argued that this year’s implantation of an artificial cornea in the eye of a blind Israeli could represent a turning point.
As early as 2013, scientists developed “Frank”, the world’s first bionic man. Frank can walk, talk and see, and is powered by 200 processors and over a million sensors.
Bank of America stressed immortality as an investment theme that could potentially dominate the next decade and beyond. Anti-aging companies were supported by the World Health Organization’s decision to classify aging as a disease in 2018.
“There could be breakthroughs in health and biotechnology, and anti-aging drugs ‘disrupt death’ and lead to drastic extension of life,” analysts said. “By 2029, humans could become ‘immortal’ and live forever.”
Synthetic biology refers to genetically modified organisms to which new applications are granted. These redesigned organisms are then used in fields such as agriculture, electronics, consumer care and drug manufacturing.
“By 2030, scientists believe that most people will have eaten, worn, used or been processed by something created by synthetic biology,” the Israeli team said. “The total addressable market is estimated to be over $ 1 trillion.”
“Health could be the new post-COVID wealth,” they added. “Bionic humans, brain-computer interfaces, and synthetic biology could all take us one step closer to the holy grail of ‘immortality’.”
Investors should keep an eye on the development of wireless electricity, according to Bank of America. It is about recharging devices without using cables.
The bank linked this theme to the launch of 5G and the possible development of 6G. This year, a group of researchers led by Aline Eid argued that the energy harnessed from 5G could eventually form a “wireless power grid.”
Holograms also have links with the eventual launch of 6G, as this network speed will be required to display a hologram on a smartphone.
The bank said Swedish pop group ABBA’s upcoming hologram tour, paired with the launch of the world’s first hologram pizzeria in London, could be a watershed moment in the technology’s widespread adoption.
The ‘metaversehas similar applications in the worlds of entertainment and gastronomy. It refers to a futuristic 3D version of the Internet where people can interact with each other using virtual reality.
“Ariana Grande, Marshmello and Travis Scott gave ‘video game concerts’ in Fortnite, showing what the future of concerts in the Metaverse could look like,” the Israeli team said. “By the 2030s, virtual reality will be completely realistic and compelling, which means we will spend more time in the virtual world than in the real world.”
Flying cars, also known as eVTOL (Electric Vertical Takeoff and Landing Airplanes), use electrical energy to take off, hover and land, with NASA and Boeing currently working on prototypes. This concept was first popularized by time travel films, most notably the 1989 films. Back to the Future: Part 2.
“The security levels of eVTOLs should match those of commercial airlines,” Bank of America said. “It’s a one in a billion chance of catastrophic failure.”
“The scarcity of natural resources and increasing emissions could prevent the planet from decarbonizing and fighting climate change,” the Israeli team said. “Carbon capture storage (CCS), new generation batteries and green mining could be the solution to reduce emissions by 70% and allow access to 3 times more rare earth metals. “
These technologies also offer investment opportunities. The bank estimated that CCS could attract $ 1 trillion in investment by 2040, with next-generation batteries set to skyrocket due to Tesla’s development of faster-charging electric vehicles.
Green mining, or agro-mining, refers to when rare metal miners reduce their levels of carbon dioxide emissions by targeting alternative sites, such as the seabed or low-carbon land. fertility.
Finally, Bank of America identified ocean-tech as a theme for investors to watch. These are innovative uses of the ocean’s resources, such as exploiting the seabed to harness electricity.
“By 2030, the global ocean economy could grow to a gross value of around $ 3 trillion, roughly equivalent to the size of the German economy in 2010,” Bank of America said.
“The rate at which these 14 themes are transforming businesses is rapid,” the report says. “[This could be] the fastest disruptive technology deployment in history. “