Reasons for an Optimistic Outlook

As we assess the economy and market environment lately, we are bombarded by the drivers of recent volatility and uncertainty: the U.S.-China trade war, unrest in Hong Kong, the looming Brexit deadline, a lack of clarity around future U.S. monetary policy, shifts in European government leadership, a weakening global economy, and an apparent slowdown in business activity here in the U.S. In recent weeks, these have been the topics covered in Sight|Lines, so this week, we’ve elected to intentionally look away from the drivers of volatility and, instead, look to something more positive – examples of innovation during this Fourth Industrial Revolution.

We introduced the Fourth Industrial Revolution in a previous Sight|Lines – it reflects a fundamental change in the ways we live, the ways we work, and the ways we relate to one another. Driven by advances in computing power and global digital connectivity, today’s innovations are merging our physical, digital, and biological worlds in ways never seen before. The World Economic Forum, which introduced the concept, collaborates with business and government leaders to conduct related research.

Emerging Technologies

We would like to highlight some new technologies.

Social Robots are increasingly present, able to recognize human faces, respond to human emotion, respond to non-verbal and verbal queues, and then make eye contact and engage in conversation. These robots are being used for hotel check-in, airport customer service, and assistance for shopping. There is great promise for the role of robots to assist the world’s aging population.

Collaborative Telepresence will be part of our future, driven by advances in augmented reality and virtual reality. Examples cited include a medical doctor, for example, being able to work remotely with patients, while appearing, to the patient, to be in the same room. Individuals in different physical locations will be able to interact with one another, whether that means being “together,” virtually, in a room or via a shared experience, such as a city tour.

Utility-Scale Storage of Renewable Energy is an interesting topic. The costs of wind and solar technology have been falling dramatically, but that raises the question: How will the energy that is stored be made available for larger-scale use? Examples include new battery technology and gravity storage, which actually uses electricity to raise a heavy block, which can be lowered to drive a turbine and generate electricity.

Healthcare Innovation

Another interesting paper is Health and Healthcare in the Fourth Industrial Revolution.

Some examples of innovation:

The cost of genome sequencing has fallen below $1,000, triggering an active search for new drugs to fight cancer and other diseases. We’re also seeing breakthroughs in genetic engineering, tissue engineering, and brain machine interface technology. Gene editing technologies provide hope for the cure of genetically oriented diseases, such as sickle cell and cystic fibrosis.

Precision medicine, "an emerging approach for disease treatment and prevention that takes into account individual variability in genes, environment, and lifestyle for each person," is considered to hold great promise for disease prevention through early detection and lifestyle changes.

Applications of artificial intelligence will likely play a transformative role in clinical decision-making.

Conclusion

As we look forward to the remainder of the year, we’ll remain focused on the drivers of uncertainty and volatility in the current environment, including U.S.-China trade, Hong Kong unrest, Brexit, Fed policy, and the economy, here and abroad. But as we do, we will also remain mindful of the positive drivers of our economy and quality of life, including the innovations resulting from the Fourth Industrial Revolution.

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