Fisher Investments Explains | Should You Invest in Emerging Technologies?

Transcript

From AI and cryptocurrency to nuclear power and more, it can be tempting to want to invest in novel technologies. It's easy to imagine how one might profit from today's new idea becoming the next big thing. The problem is, there's rarely a clear path for scientific breakthroughs to become commercially successful. Some, like the internet, do. But it took decades from the first internet connection in the late 1960s until the internet revolutionized the economy. In other cases, promising breakthroughs flame out. In the 2000s, "clean coal" was all the rage, but many believed coal would be a cheap, plentiful power source for decades. But it lost its steam to natural gas. Even if you're right about which technology will ascend over time, that still doesn't mean you'll make a mountain of money investing in it. Picking the tech isn't the only requirement. You must also identify the winners within that space. Instead of chasing new technologies, we believe in allocating our clients' resources based on understanding investment opportunities most likely to play out over the next 12 to 18 months. Given most people's long-term goals and needs, we believe it's wisest to be very measured about forays into new technologies. Investing is a long-term endeavor where diversification and risk management are crucial. Rational probabilities are a much stronger foundation than even the most promising technological advances. The good news is, that the steady 8% to 10% returns that the market provides over the long term can result in powerful returns when allowed to compound over time. And having a partner like Fisher Investments can help you stay disciplined to your long-term strategy, increasing your chances of success.