According to Ric Edleman in his article in the March 2015 issue of Financial Advisor magazine, for those of us who remember the day when there were no computers or cell phones, technological advances are coming at a faster rate than we ever imagined. Edleman believes computers will become as fast as the human brain within five years and software will emulate human intelligence within ten to fifteen years. Edleman says “To fully grasp the magnitude of the changes that are coming….It is unlikely that children under the age of five will ever drive a car with the advent of the self-driving automobiles.” As we have seen on the news such cars now exist. “Google’s test vehicles have cumulatively driven nearly 1 million miles with no accidents, and they are legal for street use in five states.” This change alone will make taxi drivers, truck drivers, truck stops and valets extinct. Can you imagine no more auto accidents and speeding tickets? The results could have a major impact on auto manufactures, auto collision and liability insurance, auto repair shops not to mention the lost revenue for cities and counties. Edelman says of the 5.3 million annual auto accidents (according to Rand Corporation) they cause 2.2 million injuries and 32,000 fatalities every year. “Americans spend $157 billion on auto insurance and the losses due to property damage, lost wages, lost household production, medical and legal costs, vocational rehabilitation expenses and workplace cost total 3.7% of our nation’s GDP.”  “…exponential technologies will radically reshape our world, thanks to emerging and innovative developments in the areas of big data and analytics, nanotechnology, medicine and neuro-science, computer systems, energy and environmental systems, robotics, 3-D printing, bioinformatics and financial services innovation.”

futureInvestors as well as financial advisors should keep informed about these changes as some companies will benefit and some will be adversely affected. Think about the change in which stocks represent the Dow Jones Industrial Average since its inception in 1896. Mr. Edleman ends his article by saying “Like it or not, we are all about to become acquainted with George Jetson, and sooner than you may have thought. You might want to prepare.” To that the Millennials will ask “Who is George Jetson”?

You have the right to ask questions and you have the right to be educated about your financial goals!

Contact us if you would like to discuss your financial goals with a Worth Asset Management Advisor and discuss strategies to protect your portfolio.

Keep in mind that past performance is not indicative of future results. In addition, there may be other Exchange Traded Products that offer exposure to the sectors mentioned and each has their unique perspectives and characteristics. It is important to determine if they are appropriate for your personal portfolio.

Disclosure: Worth Asset Management is a Registered Investment Adviser with the state of Texas. Jim Clark and/or his clients may hold positions in the ETFs, mutual funds, and/or any investment asset mentioned above. The commentary does not constitute individualized investment advice. The comments and opinions offered herein are not personalized recommendations to buy, sell or hold securities.

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