ARK Invest's Big Ideas 2020
ARK Investment Management's annual Big Ideas research report highlights the technological breakthroughs that offer the biggest opportunities for investors in areas as diverse as automation, biotech, and bitcoin.
Software that enables artificial intelligence (AI) to learn, particularly in its understanding of human language, could have 3 times the impact of the Internet, adding $30 trillion to the global economy by 2037.
According to ARK, revenue from all streaming services should quadruple (to $390 billion) by 2024. This increase is due in large part to the lower costs of streaming, huge ad revenues, and surges in music streaming and cloud gaming.
ARK believes that 37 million electric vehicles (EVs) will be produced in 2024. This number, which is 6 times the current number projected by forecasting agencies, is based on trends such as the steady increase in EV sales and the steady decline in the cost to produce EV batteries.
Automation in the form of robots and automation systems could lead to greater productivity, adding $800 billion to the nation's gross domestic product by 2024, according to ARK. This prediction is based upon decreasing prices for robots, increased demand for robots, and other factors.
ARK predicts that 3D printing will grow from a $10 billion industry to a $97 billion industry by 2024, despite a current dip in investor interest. ARK bases this prediction upon a belief that the industry is still in its early stages and could enjoy widespread adoption, particularly in manufacturing.
With the potential to transport people and items for a tenth the cost of a traditional taxi, autonomous ride-hailing services could grow quickly in popularity, despite an estimated 0ne-year delay in adoption. ARK believes the industry could be worth $5 trillion by 2024.
Trends like automation and machine learning are making it likely that the use of autonomous drones will skyrocket in e-commerce, food delivery, and even emergency transportation (saving about 20,000 lives every year). They could bring in total revenues of $336 billion by 2030.
Next Generation DNA Sequencing
With dramatically decreasing costs, increased adoption, and the potential for extensive use in oncology, next generation DNA sequencing (NGS) could generate $21 billion in revenue by 2024.
Biotech R&D Efficiency
ARK believes that trends like the growth of AI, NGS, and CRISPR gene-editing technology could drive more efficient drug development and create trillions of dollars in the biotech and pharmaceutical industries.
Digital wallets could be worth $800 billion by 2024. ARK bases this estimate largely upon the fact that their adoption is growing twice as fast as did social media, and that their average value is about the same as that of a retail bank account ($3,650).
ARK believes that bitcoin's value could quickly skyrocket from $150 billion today to trillions of dollars because, in an environment where monetary systems are increasing, bitcoin's features serve consumers well and because bitcoin is enjoying increased recognition within the financial community.
Investors can use ETFs to invest in each of these ideas. Some thematic ETFs focus on a single theme, while other funds invest in multiple themes. Blue Water would be happy to discuss how these ETFs can fit into your portfolio.