Thread by @DarntonsMedia

Cathie Wood has said that investing within innovation will yield a 200X return within public markets. 👇

But, WHY does she think this?

Is she CRAZY?

Well, not really. This might actually happen.

And, it is because of THIS: 👇

@ARKInvest #CathieWood #investing

@ARKInvest It is because of the theory of accelerated law of returns.

This posits that technology change is exponential. Within next 100 years, we will not experience 100 years of progress.

Instead, we will experience over 20K years of progress within the next 100 years (today’s rate).

@ARKInvest Put simply - technology is EXPONENTIAL, and grows at rates humans can not even understand.

Once again - in the next 100 years, there will be 20K+ years of progress.

@ARKInvest There is even exponential growth within the rate of exponential growth.

This means that, within a short period when machine intelligence surpasses human intelligence, this will lead to a singularity.

@ARKInvest A singularity is a term used to indicate technological change that is so rapid and product, it creates a rupture in the fabric of human society.

Will this happen? Let us know!

@ARKInvest The philosophy of exponential change, stating that within the next 100 years we will experience over 20,000 years of progress, evidently shows the huge potential to ride large innovative waves within markets.

@ARKInvest There are similarities between innovation now, and emerging market investments.

People could see GDP was going to accrue to the emerging markets, and therefore individuals deployed equity towards these emerging markets to benefit from this gain.

@ARKInvest ARK Invest believes that:

- the same will happen for innovation.

Similarly to emerging markets, people originally viewed this investment as trivial and too risky.

However, emerging markets eventually made up a HUGE portion of markets.

@ARKInvest In the late 1980s and early 1990s, investors had little, if any, exposure to what has evolved into 13% of the global equity market capitalization and 60% of global gross domestic product (GDP) on a purchasing power parity basis.”

@ARKInvest ARK Invest stated within an exclusive interview that, “it really is a unique time within technological, economic history”, said Bret within a recent conference.

Do you agree?

Let us know!

https://twitter.com/DarntonsMedia/status/1559495224312872962