| Douglas Adams wrote my favorite book of all time, The Hitchhiker's Guide to the Galaxy. And I always quote "Don't panic" when we talk about volatility. But in the late 1990s, Adams also penned a very insightful essay, "How to Stop Worrying and Learn to Love the Internet." In it, he laid down three rules that govern our attitudes toward technology. I've relied on these over the years to help me spot opportunities in new fields. Adams' three rules are... - Everything that's already in the world when you're born is just normal.
- Anything that gets invented between then and before you turn 30 is incredibly exciting and creative and with any luck you can make a career out of it.
- Anything that gets invented after you're 30 is against the natural order of things and the beginning of the end of civilization as we know it until it's been around for about 10 years when it gradually turns out to be alright really.
In short, the world is far from stagnant. Technology always marches forward. The same is true of the markets. That's why I looked at the 10 industries that are supposedly "the beginning of the end of civilization." But I believe these are the sectors that investors will learn to love over the next five years. Cloud computing has been one of my favorite sectors to target for quite some time. I've booked triple-digit gain after triple-digit gain - even when many analysts turned their backs on it. "The growth is over," they claimed. Well, they were wrong.
Big names in the sector continue to post even bigger gains. In fact, Microsoft (Nasdaq: MSFT) is hitting new highs on major contract wins as it works to close the gap with Amazon Web Services. The global cloud computing market is expected to be worth more than $712 billion by 2025. Fintech is another massive opportunity, projected to be worth more than $305 billion in the next five years. Plus, there's the revolutionary 5G space. Globally, we're looking for this to be worth more than $250 billion by 2025. And that will affect all aspects of our lives. Just as important, 5G makes autonomous vehicles, artificial intelligence, medical robots and the rest of the "Fourth Industrial Revolution" technologies a reality. But even though a market might not be worth hundreds of billions in five years, that doesn't mean it fails to offer exciting opportunities. Let's look at esports. This is an industry that's just beginning to really take root. But it already has a high level of visibility. Overwatch League games are televised on major networks. And the teams have loyal followings, just as any other traditional sport has. |
No comments:
Post a Comment
Keep a civil tongue.