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Things are only going to get crazier from here

April 17, 2024
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Wiko Steyn
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Wiko Steyn

Unicorn Portfolio Update 16

 

This decade started off with a bang via Covid and since then nothing has really returned to normal. It is now almost 3 years later and everything still seems a bit crazy, this is certainly true for the financial markets, but the craziness stretches further with the War in Ukraine, Elon Musk and the whole Twitter debacle, the FTX scandal, geopolitical tension and the generally heightened uncertainty of what the future holds.  

If you are not a fan of this new regime we have bad news for you, there is a good chance that the world will continue to get exponentially crazier. What may seem strange and futuristic today will appear quaint and old-fashioned in a decade. Today's headlines will become common occurrences. As humans, we have evolved to use our past experiences to anticipate what the future might hold. But as the pace of progress increases our past experiences have a shorter shelf-life of usefulness. 

In our article about gene editing, we encouraged our readers to create a vision of the future and asked them which emerging technology will have the biggest impact on the modern world. Our answer was that many of them will play a significant role, artificial intelligence will transform our day-to-day activities, robots will deliver our food and perform your next surgery and new rocket technology will take us where we have never been before. We also believe that we are entering the golden age of biotechnology which will revolutionise our health and that is why we are invested in AI Drug Discovery, Proteomics, Synthetic Biology, Cell Engineering and Regenerative Medicine in our high-risk BioTech Longshot portfolio. 

In all honesty, humans are generally terrible at predicting the future and we will probably be way off if we try to predict what 2050 will look like. As Tim Urban explains it:

You have to remember something about what it's like to stand on a time graph: you can't see what's to your right. It's possible to look backwards with relative certainty it's impossible to look forward with any certainty, particularly when progress itself is increasing at an increasing pace. 

Yet we are constantly bombarded with opinions of what the future holds whether in the short term or the longer term.

Today the general consensus is quite negative, the lost decade, the 20-year bear market, hyperinflation, stagflation, the end of the western financial system, WWIII and the list goes on and on. All these events might actually play out and that is why there is always risk associated with investments but there is an old saying pessimists sound smart, optimists make money. 

Elon Musk sees the future of our world in a different way and he even stated that we will enter the age of abundance, which is quite an interesting perspective of our future. As with all things in nature our progress is cyclical and although we are inclined to agree with Mr Musk, we might currently find ourselves at a local peak where we will have to endure a period of pain before we will hit an inflection point which will lead to exponential advancement.

The good news is these crazy times usually breed innovation because it will create a need for new solutions to the challenges that people are facing. With the uncertainty and unpredictability of the current situation, people will be driven to think outside of the box. 

 

Portfolio Transactions Summary

SoFi has been under tremendous pressure lately, with the student loan extension, interest rate hikes and crypto investigation. Yet we feel this might be a company that comes out stronger and it is a perfect fit for our Unicorn Portfolio.

  • Buy $250 SoFi at $4.30


Disclosure

This is not financial advice and is only based on the author's opinion. This is not buy or sell recommendations of any stock.  The $10K is not real money and only a demonstration of a typical portfolio. The Unicorn Portfolio is a high-risk portfolio and should always remain a small allocation of your overall assets. This is an actively managed portfolio where we will buy and sell positions as we deem fit without any regard for taxation. Remember, all selling of stocks triggers a tax event in most countries and it is the investors personal responsibility to always remain tax compliant.

 


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