disruptionMerriam Webster Defines ‘disrupt’ as ‘to break apart,’ and ‘to throw into disorder.’

While disruption doesn’t sound like something anyone would enjoy much, it has the potential to create investment opportunities for those who share a vision and are willing to take risks.

Morgan Stanley recently wrote, “It’s hard to think of an industry that won’t be touched in some way by technological disruption over the next decade.” Here are a few of the trends that may really stir things up during the next few decades:

  • Machine learning. “The transportation and medical industries are likely to be first in line for disruption,” Morgan Stanley suggested. A disruptive change researcher wrote, “If we think about what machine learning really is, it’s pattern recognition. We might see radiology and scans detecting cancers earlier than they’re detected today. And it’s possible that in the future we can also use machine learning to scan for genes that might predispose us to certain kinds of diseases.”
  • Autonomous vehicles. The auto industry, as we know it, is likely to change in some significant ways when self-driving vehicles become more prevalent. Other industries will be affected, too. For instance, insurance could change dramatically. After all, who do you insure when software is driving?In addition, cities may lose a source of revenue if there is less need for parking. CNBC wrote, “Reports estimate self-driving vehicles have the potential to reduce parking space by about 61 billion square feet, which is about the size of Connecticut and Vermont combined.” This may be a boon for the real estate market.The responsibilities of law enforcement may change, too, and crash test dummies may be out of work.
  • Augmented reality. Imagine a surgeon being able to practice a surgery, a rigger learning their craft without scaling heights to lift heavy objects, or a teacher making students’ textbooks come alive. Augmented reality has the potential to help professionals refine their skills, make dangerous training safer, and fascinate students at all levels of learning.

Morgan Stanley also pointed out that Blockchain, which enables electronic contracts and custody, may change the financial industry, and Clustered Regularly Interspaced Short Palindromic Repeats (CRISPR) may help cure disease at the genetic level.

We live in interesting times! This is one of the reasons I have so much faith in the long-term health of World Markets. For more information about my investment philosophy, read my book Mindful Money: Simple Practices for Reaching Your Financial Goals and Increasing Your Happiness Dividend.

Weekly Focus – Think About It

“Companies don’t have ideas. Only people do. And what motivates people are the bonds of loyalty and trust they develop around each other.”
–Margaret Heffernan, International businesswoman and author

Sources:

https://www.merriam-webster.com/dictionary/disrupt
http://www.morganstanley.com/ideas/stan-delaney-5-disruptive-trends?et_mid=19351&et_mkid=05dcda3fc149857c3a3cc45c1c6dc98b
http://www.cnbc.com/2017/05/03/self-driving-cars-will-disrupt-10-industries-commentary.html
http://elearnmag.acm.org/featured.cfm?aid=2380717
http://www.morganstanley.com/im/en-us/institutional-investor/insights/investment-insights/the-edge-crispr.html
http://blog.ted.com/21-amazing-quotes-from-tedwomen-2015/

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