How to start an investment conversation?

Weekly Investment Conversation Starters No. 132

Thanks for reading this newsletter, this week we talk about re-using rockets to explore space, a new AI-powered video generator and better health metrics in the US.

Three ideas to start a thematic investment conversation

1. The future is sending a rocket and catching it back ????

SpaceX successfully launched its rocket and caught the booster with "chopstick" arms.

2. Another AI-powered video generator ?????

Meta aims to set a new standard with Movie Gen, creating and editing videos from text.

3. Americans are (maybe) getting healthier ????

Overdoses down, life expectancy up, better cancer survival, and weight loss improvements.

1?? The future is sending a rocket and catching it back

• Last Sunday, SpaceX's completed an historic flight.
• It launched the most powerful rocket ever, and eight minutes later it proceeded to catch the Super Heavy booster with "chopstick" arms as it executed a bull's-eye landing on its launch tower.

Why you should know?

1. SpaceX is revolutionizing spaceflight with fully and rapidly reusable rockets.
2. SpaceX plans to use Starship to land NASA astronauts on the moon by 2026.
3. The mission marked a big step toward multi-planetary life, with Mars as the next target.

How did it work?

• Four test flights occurred since 2023, with Flight 4 succeeding on June 6 2024 when Starship survived re-entry.
• Flight 5, this past Sunday, featured significant upgrades, including a new heat shield.
• It also had the huge Mechazilla launch tower catching the Super Heavy booster as it comes in for a landing at Starbase.

Share an investment thought:

???? Investment Theme: Space Economy

A broader range of applications in communication and security, as well as new industries such as space mining, space manufacturing, space tourism and space-based solar power are set to drive strong growth over the decades ahead.

2?? Another AI-powered video generator

• This time by no else than Meta, who aims to set a new standard for immersive AI content.
• Movie Gen can create clips from text inputs or edit existing videos.

Why you should know?

1. AI-powered video generation could revolutionize marketing, entertainment, or social media.
2. Competition is increasing with other major tech companies, like OpenAI and its Sora tool.
3. But these tools are not yet public, due to high costs and long generation times.

How does it work?

• Users will be able to generate videos from text to create unique, high-definition clips.
• Or edit existing video with text to change styles, transitions, and make their own adjustments.
• Or even produce personalized videos with their picture and transforming it into custom motion.

Share an investment thought:

???? Investment Theme: Enabling Technology

Enabling technologies like artificial intelligence, AR/VR, 5G, cloud and big data are the engine of the digital transformation and spending on their development should remain high.

3?? Americans are (maybe) getting healthier

• Some key metrics are improving it seems:
• Overdose deaths are down, life expectancy is up, cancer survival odds are improving, and people are even losing weight…

Why you should know?

1. Preventive care, breakthrough therapies like new weight-loss drugs, changing attitudes on drinking/drugs help.
2. But more diagnoses in younger groups Gen X and millennials are concerning, with higher cancer diagnoses, possibly due to lifestyle and obesity.
3. So challenges remain and a complex insurance system and high costs could hinder further progress.

Where are the numbers better?

• Opioid crisis may be turning a corner with drug overdose deaths declining.
• Cancer treatments are improving with survival rates up due to targeted therapies.
• Obesity slows after decades of increase ; though 4 in 10 Americans are obese, the rate has stopped rising.

Share an investment thought:

???? Investment Theme: Obesity

The obese population has more than doubled since 1980 (Source : WHO) and is expected to keep rising as per-capita GDP rises in the developing world. The economic cost of obesity is growing and is making this condition a top priority.

About Investment Conversation Starters

Hand-picked for relationship managers and investment advisors,?Weekly Investment Conversation Starters?is a series of ideas to start a conversation with clients, spark their curiosity and gauge their appetite for thematic investments.

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