Ark female stock god: innovative technology is non-bubble, blockchain and other 5 fields will create 3-5 times of income

The new year is approaching, and various institutions have launched a new round of future outlook reports. After the Ark female stock god Cathie Wood has not fallen behind, he released a Twitter on December 29 to call on investors to refer to the current situation. The market’s year-end summary and future outlook report pointed out that in the next five years, investment in blockchain, DNA sequencing, robotics, AI and energy will generate 3 to 5 times the benefits.

Five competitive projects, the income may reach 3~5 times within five years

Wood pointed out in the report that the dot-com bubble will not repeat itself at this stage for two reasons:

1. The market already has demand for technology companies (and products), not just at the conceptual stage

2. Today's investors have investment experience in the network industry, attach great importance to risk control, and will not easily consume funds

Wood emphasized that the global economy is undergoing the biggest change in history, and most indexes may be in danger, although many stocks are currently sold at record prices and valuations, such as the S&P500 index at 26 times and the Nasdaq composite index. Refers to 127 times. However, projects involving 14 technologies and five major innovation fields may subvert this order. The five major projects are as follows:

1. DNA sequencing (due to the epidemic)

2. Robotics

3. Energy storage

4. Artificial intelligence

5. Blockchain technology

Wood believes that these five technologies will produce scale effects and gradually merge. The traditional investment strategy that has been tried and tested will be eclipsed in the next five to ten years. Instead, the former may produce investment benefits of 3 to 5 times.

Female stock gods look at the overall environment, and praise destructive innovation will lead the future

In addition to the five potential areas, Wood also analyzed the current market conditions. She believes that inflation is due to the new crown virus and excessive monetary policy, which has caused the market to shift from growth stocks to value and defensive stocks. This situation is conducive to energy. The development of companies in the fields of, financial services, industry, and materials has led to serious underestimation of the valuation of disruptive innovation.

Quantitative trading strategies flourished during inflation and dominated the U.S. stock market (accounting for nearly 70%). This trading strategy favors low-profit security industries such as energy and financial services, but Wood believes that these two areas will be affected by independent power industries in the future. Replaced with DeFi, calling on investors and institutions to recognize it as soon as possible.

Wood took NuBank, which was established this year, as an example. Its financing at a valuation of US$25 billion and its listing in December at a valuation of US$40 billion. In contrast, Mercadolibre, which is well-managed and well-competitive, has been halved.

Wood also said that in the next three to six months, supply shortages will be eliminated and consumer demand growth will slow down, which will bring inventory problems and lead to weakening of inflation in the United States, China, and emerging markets. Wood pointed out that ocean shipping costs have fallen by 39%, DRAM prices have fallen by 27%, and U.S. timber has also declined by 35%. During the economic slowdown, the popularization of new technologies will accelerate, so technology pioneers with deep value will be able to shine in the future .

Wu De finally said that investors are currently adopting a cautious strategy, hoping that their investment allocation is closer to the fundamentals, but such a strategy is unlikely to generate high returns in the next ten years. She took her investment in Tesla as an example. Said that disruptive innovation is where the high-yield development lies, and it is expected to expand from the current 10-12 trillion U.S. dollars (10% of the global capital market) to more than 200 trillion U.S. dollars.