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Your money’s future is now - investing in an evolving tech industry

* 27 September 2021 8:36 PM
Tags:
Apple
Investment
Money
Technology
Google
Artificial Intelligence
Steve Jobs
Kevin Lings Chief Economist at Stanlib
!Khomani Cultural Landscape
technological advancement
stanlib
Stafford Masie
Sponsored Content
STANLIB Make Your Money Do More
#MakeYourMoneyDoMore
RPA
Multi-style fund

Technology is continuously impacting our present and shaping our future but does that make the industry an easy win for investors?

Whether you’re an investor aiming for more certainty, more return or more impact, STANLIB has a fund solution for you.​ The STANLIB Your Money Can Do More podcast series hosted by Bongani Bingwa and STANLIB’s Chief Economist Kevin Lings features experts who will help potential investors navigate and plan for tomorrow, today.

In this episode, Bongani and Kevin discuss technology trends of the future with Stafford Masie, a Discovery Bank board member and FinTech expert who’s also known as the man who brought Google to South Africa. The conversation covers past, present and future tech as well as industry advice for investors.

Listen to the audio:

The artificial intelligence (AI) market is expected to grow to $190 million (R2,8 trillion) by the year 2025, quantum computing is expected to surpass $2,5 billion (R41 billion) in terms of revenue by 2029 and Robotic Process Automation (RPA) is set to threaten the jobs of 230 million people. This may sound like the plot for a sci-fi movie, but a technologically advanced future is quickly becoming a reality.

With all these advancements booming over the past year, is the technology industry worth investing in for the long run or is this just a product of the pandemic? STANLIB’s Chief Economist Kevin Lings believes that these trends are here to stay.

He mentions the vast implementation of virtual workspaces and other work-from-home services as well as the pharmaceutical sector’s success in developing and distributing COVID-19 vaccines both quickly and efficiently.

I think this [development] has provided a massive boost to the medical industry. At the same time, if I look at the various IT sectors or even just online trading or online shopping, all of those technologies have moved ahead quite sharply. I think those are also here to stay.

Kevin Lings, Chief Economist at STANLIB

With new technological advancements moving at a rapid pace, it may be overwhelming for an investor looking into the market. In order to have a better understanding of what the future holds, one must look to the past and take note of the ripples that made waves over the years. Stafford Masie lists three major occurrences from the year 2007 that have ultimately impacted where we are today.

Firstly, the urbanization of the population when, for the first time, more people lived in cities than not. Millennials also started becoming the majority of the workforce that year. Lastly, the revelation of Apple’s first iPhone by Steve Jobs.

Although it wasn’t presented to us like the iPhone was, Masie notes that with the mainstream adoption of Bitcoin as well as the rise of Non-Fungible Tokens (NFTs), cryptography is solidifying its place in our economy and is set to be the next big thing.

When he got up and (he) showed that device, that was a transformative thing that occurred because it wasn't just a piece of technology that he was showing us. This wasn't just a beautiful phone. It was a device that had an ecosystem attached to it. The notion of having co-creativity personified in your business was suddenly a reality.

Stafford Masie, Board Member at Discovery Bank

So what is that big technological step? It's cryptography. This notion of a decentralized network allows for sharing of value without any intermediary. It's profound. It's phenomenal. It's incredible and it's gonna be quite interesting to see.

Stafford Masie, Board Member at Discovery Bank

He also lists ways in which people have adapted their work and living environments to the pandemic and the improvement of technology simultaneously. Older generations are engaging with new technology and integrating it into their lives. More people have moved away from the cities and into suburbs to work from home, which is an inverse of 2007’s urbanisation. Businesses have also adapted to accommodate these changes.

Should you be rushing to invest in tech trends?

The investor is spoiled for choice when it comes to the tech market and is always hopeful that they’ll stumble upon the next Google or Apple, but splurging too early and getting caught up in all the excitement might be your downfall, according to Lings.

Many fall victim to the hype that comes with tech investments, but Lings advises consulting with experts like Masie before diving into your pockets. These professionals can help determine a worthy investment and decide on the best time to invest. It’s a safer bet to be slightly late than too early, says Lings.

You probably want to be a little bit behind [when investing]. Get more evidence that this is a proven technique, proven technology... It can deliver a bottom-line return and then start to feed it into the portfolio over time so that you’ve got a higher conviction around this company before you actually put it into the portfolio.

Kevin Lings, Chief Economist at STANLIB

We found that if you can construct a range of artificial intelligence and overlay that into a selection of equities, you end up with a very healthy portfolio that actually performs exceptionally well.

Kevin Lings, Chief Economist at STANLIB

STANLIB offers a hybrid investment solution fit for the future called the STANLIB Enhanced Multi-Style Fund, which introduces AI into the investment process while maintaining the fundamentals of investing. The fund is a non-benchmark conscious active equity fund that aims to provide investors with sustainable capital growth over the long term by investing in a broad range of South African equities.

To find out more about how STANLIB is helping and preparing their clients’ investments for the future, visit www.STANLIB.com/more now!




* 27 September 2021 8:36 PM
Tags:
Apple
Investment
Money
Technology
Google
Artificial Intelligence
Steve Jobs
Kevin Lings Chief Economist at Stanlib
!Khomani Cultural Landscape
technological advancement
stanlib
Stafford Masie
Sponsored Content
STANLIB Make Your Money Do More
#MakeYourMoneyDoMore
RPA
Multi-style fund

More from STANLIB's Your Money Can Do More podcast