Month: August 2019

Monthly Newsletter – August 2019

July was a calm month for investors with most asset classes delivering faint returns. The S&P 500 reached a new all-time high and closed up 1.4% for the month. As we turn the calendar to August, our newsletter covers the highlights from ARK’s Big Ideas Summit, gauging the impact of the Fed’s rate cut, and the latest monthly commentary from Pacific Asset Management

Big Idea’s Summit 2019

We attended the Big Idea’s Summit 2019, an event hosted by ARK Investment Management on July 24th at the New York Stock Exchange. The event sought to educate, inspire and empower investors to better understand today’s market, where to find long-term growth, and the impact transformative technologies will have on their portfolios. Below are some topics covered at the event:

Deep Learning
  • Deep learning is software that’s not ‘written’ but ‘trained’. Humans gather data and create a learning framework. The system learns the right behaviors automatically. Deep learning improves with more data and often exceeds human performance.
  • Examples: Social Media, Apple Watch, Tesla Autopilot, Google Translate, Smart Farming.
  • Amazon Go uses cameras and sensors which feed into deep learning software to recognize shoppers, to understand when they pick up items or put them back, and to allow them to leave the store without checking out at a cash register.
Digital Wallets
  • By the end of 2018, Venmo became the 4th largest manager of customer accounts, trailing only Bank of America, Chase, and Wells Fargo.
  • Digital wallets can acquire customers much cheaper, becoming effective channels for banks to engage and retain customers.
  • Based on lower customer acquisition costs and more cross-selling opportunities, investors could value digital wallets at a significant premium to traditional banks.
Genome Editing
  • CRISPR is a powerful DNA editing tool that should be able to delete, replace or repair genes easily, inexpensively, and precisely.
  • ARK believes CRISPR is the most promising way to cure diseases — from sickle cell anemia to cystic fibrosis to pediatric blindness to cancer. CRISPR genome-editing should shift the health care system from treating symptoms to curing disease.
  • CRISPR enables cheap and rapid “write” capabilities to correct defects and cure diseases.
  • Genetic defects in the human code cause many diseases including cancer, heart disease, diabetes, cystic fibrosis, and Alzheimer’s.
  • CRISPR Should Address All Monogenic Diseases, potentially generating $75 Billion in Global Revenue Per Year.
  • Only 5% of 10,000 monogenic diseases, conditions caused by an error in a single gene, respond to any treatment today.
3D Printing
  • 3D printing is a form of additive manufacturing that builds objects layer-by-layer instead of removing material from a larger block or using a mold.
  • As a result, 3D printing collapses the time between design and production, shifts power to designers, and creates products with both radically new architectures and less waste, at a fraction of the cost of traditional manufacturing.
  • Boeing estimates that 3D printing could save $2-3 million per plane.

Gauging the Impact of the Fed’s Rate Cut

Lord Abbett experts explore the potential investment implications of the U.S. Federal Reserve’s policy move on July 31. 

Gauging the Impact of the Fed’s Rate Cut – Lord Abbett

Monthly Market Commentary

Our partners at Pacific Asset Management share their latest Market Commentary. Please click the link below to read the latest monthly commentary:

Pacific Asset Management – August Commentary