Don't have an account?
Learn More -or- Register Now
Here's a helpful set of tools you can use to talk with clients now.
Learn moreDon't have an account?
Learn More -or- Register Now
Stephen Dover, Head of Equities, thinks innovation transcends both space and time and headlines investing within five platforms of growth.
Stephen H. Dover, CFA Head of Equities
When the Apollo 13 crew helplessly floated in space 50 years ago after an oxygen tank failed, its flight plan changed from a moonwalk to an emergency Earth landing. For the crew to survive, they engineered “the mail box”1 in 35 hours from available materials: spacesuit hoses, tube socks, and duct tape.2 Need, creativity, and timing coalesced for the Apollo 13 crew to launch and later return safely to Earth. The Third Industrial Revolution lit the Space Age with innovation that emboldened space dream makers and allowed consumers to participate with the sale of space technology, such as wireless headsets, LEDs, and more.3
Innovation is meaningless if it isn’t practically replicable, available, utilizable, or comprehendible. The Space Race fostered today’s Fourth Industrial Revolution, and during COVID-19, innovation is accelerating in meaningful ways. These are five major evolving platforms of growth that we expect to generate considerable economic value over the next five to 10 years:
In his paper “Investing In Innovation,” Franklin Equity Group Portfolio Manager Matt Moberg details how the Fourth Industrial Revolution will affect all parts of the economy. Innovation can drive long-term wealth creation, yet it is one of the most misunderstood and mispriced areas of equity markets. This disconnect between perception and reality creates opportunities for active management.
All investments involve risks, including possible loss of principal. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions. The technology industry can be significantly affected by obsolescence of existing technology, short product cycles, falling prices and profits, competition from new market entrants as well as general economic conditions. Investments in fast-growing industries, including the technology and health care sectors (which have historically been volatile) could result in increased price fluctuation, especially over the short term, due to the rapid pace of product change and development and changes in government regulation of companies emphasizing scientific or technological advancement or regulatory approval for new drugs and medical instruments. Actively managed strategies could experience losses if the investment manager’s judgment about markets, interest rates or the attractiveness, relative values, liquidity or potential appreciation of particular investments made for a portfolio, proves to be incorrect. There can be no guarantee that an investment manager’s investment techniques or decisions will produce the desired results. Past performance is not an indicator or a guarantee of future results.
CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute.
Source: NASA.gov, “Apollo 13 Lunar Module ‘Mail Box’,” March, 23, 2008.
Source: Popular Science, “The Greatest Space Hack Ever,” October 8, 2014.
Source: NASA Jet Propulsion Laboratory, “20 Things We Wouldn’t Have Without Space Travel.”
This material is intended to be of general interest only and should not be construed as individual investment advice or a recommendation or solicitation to buy, sell or hold any security or to adopt any investment strategy. It does not constitute legal or tax advice.
The views expressed are those of the investment manager and the comments, opinions and analyses are rendered as at publication date and may change without notice. The information provided in this material is not intended as a complete analysis of every material fact regarding any country, region or market. All investments involve risks, including possible loss of principal.
Data from third party sources may have been used in the preparation of this material and Franklin Templeton ("FT") has not independently verified, validated or audited such data. FT accepts no liability whatsoever for any loss arising from use of this information and reliance upon the comments opinions and analyses in the material is at the sole discretion of the user.
Products, services and information may not be available in all jurisdictions and are offered outside the U.S. by other FT affiliates and/or their distributors as local laws and regulation permits. Please consult your own financial professional or Franklin Templeton institutional contact for further information on availability of products and services in your jurisdiction.
Issued in the U.S. by Franklin Templeton Distributors, Inc., One Franklin Parkway, San Mateo, California 94403-1906, (800) DIAL BEN/342-5236, franklintempleton.com - Franklin Templeton Distributors, Inc. is the principal distributor of Franklin Templeton U.S. registered products, which are not FDIC insured; may lose value; and are not bank guaranteed and are available only in jurisdictions where an offer or solicitation of such products is permitted under applicable laws and regulation.
You need Adobe Acrobat Reader to view and print PDF documents. Download a free version from Adobe's website.
Franklin Templeton Distributors, Inc.
This website is for US residents.
This website is for US residents.
Copyright © 2021 Franklin Templeton. All Rights Reserved.
There are literature items in your cart. If you sign out, all items will be removed.
Click "Stay Signed In" to continue your session and keep items in your cart.
Otherwise, click Sign out to end your session and empty your cart.
You can compare a maximum of 4 funds.
Money funds and liquidated funds cannot be added to comparison.
Quarterly commentary discussing fund performance. View more details
Client Use: | (FINRA Letter) |
---|---|
Literature Code: | |
Format: | () |
Publication Date: | |
Next Update: |