How to start an investment conversation?

Weekly Investment Conversation Starters No. 118

Thanks for reading this newsletter, this week we talk about life on Mars, the rapid death of cash transactions and the sound that an electric vehicle should make.

Three ideas to start a thematic investment conversation

1. After a year, crew exits artificial Mars habitat ??????

Four volunteers completed a year-long Mars habitat simulation by NASA.

2. The rapid death of cash transactions ????

Credit cards and digital wallets rise, cash use declines rapidly, WorldPay predicts further drop by 2027.

3. What should an electric car sound like? ????

For ages carmakers tried to reduce noise, then driving eventually became silent, and that created a problem.

1?? After a year, crew exits artificial Mars habitat

Seen on the NASA website this past week:

• In 2023, NASA locked four volunteers inside a mock Mars habitat for a year.
• After 378 days, their mission ended and they exited their 3D printed Martian base on Earth.

Why should you know?

1. The mission aimed to find potential challenges in a crewed voyage to Mars.
2. It served to test reactions to stressors like communication delays, resource limits and isolation.
3. It measured crew health and performance in relation to the food system designed for long-duration missions.

What did they do for a year:

• They simulated Mars operations, including “Marswalks”.
• They grew and harvested vegetables.
• They maintained their equipment and habitat.

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?? The rapid death of cash transactions

Seen in VisualCapitalist this past week:

• As credit cards and digital wallets rise, cash use in transactions is dropping fast.
• The WorldPay’s Global Payments Report 2024 show the latest trends in payment methods and cash's projected drop in many countries by 2027.

Why should you know?

1. Digital wallets are becoming people’s preferred payment choice, with card transactions simply shifting to digital wallets.
2. Smartphone manufacturers like Apple, Google and Samsung are among the world’s leading digital wallet providers.
3. Fintechs and super apps like Alipay and WeChat Pay in China or Paytm in India are among the most successful brands in digital wallets.

What will happen to cash?

• By 2027, it will remain the leading payment method in just five markets: Colombia, Mexico, Nigeria, Peru and Spain.
• France, Singapore, South Korea, the UK and the US will fall below the 10% transaction value threshold, joining China, Australia and Norway which are already below.
• Yet cash remains a vital payments tool for billions of consumers worldwide, primarily lower income, underbanked and unbanked consumers.

Share an investment thought:

???? Investment Theme: Fintech

The global fintech industry is at an inflection point and set to drive a major digital transformation in the financial services industry.

3?? What should an electric car sound like?

Seen in Vox this past week:

• For most of the history of the automobile, carmakers tried to reduce the noise driving makes.
• Then one day, driving didn’t make much sound at all. And that became a problem!

Why should you know?

1. The world we built around the automobile relies on sound.
2. Drivers expect audible feedback and pedestrians and cyclists listen for cars.
3. Electric vehicles are quiet and need to bridge the gap from cars that make noise to a future that sounds different.

What noise should an EV make?

• It should not sound too quiet or be too annoying.
• It should meet US and EU regulations requiring EVs and hybrids to play sound to alert people.
• Designers typically pick a looping sound that plays faster or slower depending on vehicle speed.

Share an investment thought:

???? Investment Theme: Smart Mobility

Regulatory changes, consumer preferences and technological advances will likely lead to even greater electrification and automatisation of means of transport.

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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