Cathie Wood recently gave a dark warning to investors to avoid black hole investments. In this video, I go in-depth on what these investments are and why you should avoid them.
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We are currently in one of if not the largest technological transformation in history, kathy wood. The ceo and cio of arkhanvest believes that we are on the verge of an unprecedented technological revolution. In the early 20th century, we experienced massive changes to our economy that transformed the world and are still relevant today. This included three innovation platforms, the telephone electricity and the internal combustion engine.

Now, kathy wood and arkhan vest believe that we are undergoing a similar or even bigger transformation here in the 21st century. This transformation will change the world as we know it, and not surprisingly, significantly alter the investing landscape for years to come in this video i'll be talking about why kathy wood believes that traditional valley, investors and valley stocks will be disrupted heading into the new year and Beyond welcome to cas games academy, if you're new to the channel, please consider subscribing for more content like this and let's get right into it. Wood and arc invest commonly referred to a graph that is demonstrated and will continue to demonstrate the course of innovation. For the history of mankind, this is the s-curve graph, with revenue on the y-axis and time on the x-axis.

This involves multiple segments that eventually reach a maturity point where they have no choice but to plateau and decline. During this time, there is a new innovation window for a new product that is more efficient than the old technology and arc invest, thinks that we are in the midst of another innovation window. Kathy would believe that the previous s-curve of innovation was experienced over a century ago. These technologies have changed the way we live and are still used today.

Now it is time for the adoption of new technologies that are simply better and easy to use in comparison to their current counterparts. The sweet spot of the s curve starts somewhere in that 10 to 15 high teens range of share. Then we go into overdrive. Then we go into overdrive in terms of tech, new technology, adoption think about it.

Retail seems to have been destroyed already we're only 16 into that move. Think about it. Kathy would think that at this moment we are at the tipping point of the s curve, which would be around the 10 to 20 range. More specifically, the launch point that is displayed on this s curve.

We can see how much growth there is to come, and this will come as kathy mentions in our five investing platforms of innovation, artificial intelligence, energy storage, robotics, genome sequencing and blockchain technology in a recent arc report. Kathy would detail that upcoming innovation will also create black holes in the current financial markets. If there are going to be new markets created by the five platforms of innovation, they need to take out market share of more or less five already existing sectors. These black holes will drive out old businesses that take 35 to 40 of the s p 500 and will be replaced by new businesses.
The businesses include linear tv, physical bank branches, brick and mortar retail freight rail and traditional transportation. This all might sound a little extreme at first, as many of these are relied on heavily in our everyday lives. However, there are many reasons that point to the notion that these businesses will no longer be relevant in just a short period of time. Linear tv uh.

We believe uh that uh linear tv is about to experience a wily coyote moment off. The cliff advertising spending on television in the united states has been fairly flat for the last few years, while the number of households watching tv has dropped from 100 million to fewer than 50 million. Think about that and advertising bit has been flat. Well, streaming is about to solve that uh.

There is a massive shift to streaming tv now and uh. We believe that the there that uh triggered trip the switch for that uh television advertising to fall, and we think that analysts, who have been fairly comfortable with the cash flows in that uh in that world are are also going to experience. The wiley coyote moment. Kathy means in this clip with mentioning the wild e coyote moment is the looney tunes cartoon character.

She believes that these sectors have been chased off the cliff by disruptive technology. Linear tv is currently unknowingly suspended in the air with no support below it. It's only a matter of time before reality, catches up and the industry comes crashing to the ground as kathy would mentioned. Advertising revenue is flat, while the number of people watching traditional tv is falling dramatically.

This is especially evident with the younger generations. Furthermore, the way linear tv is set up is extremely inefficient when you purchase a subscription to linear tv you're forced to get a ton of useless channels that you know you're, not gon na watch. Most of the time, a few channels in the package carry the rest of the channels, and sooner or later those channels and advertisers are going to do something about it. Arkan vest forecasts that over the next five years, the number of u.s linear tv households will drop 48 from 86 million today to 44 million in 2025.

The way streaming services are set up are a lot more efficient for both sides of the party there's better and cheaper content and targeted advertising. Both of these branches are now in more danger than ever. For example, physical bank branches will be replaced by digital wallets in the us very soon. Kathy wood often refers to the financial networks in china.

As an example, china has seen a dramatic growth into the adoption of digital wallets, like wechat pay and alipay. In q4 of 2019 tencent reported that one billion wechat paid transactions occur daily, with the continued growth in the us through paypal's venmo, square's cash, app bitcoin and more. We see traditional financial institutions fighting an uphill battle. The cost of acquiring a loyal customer for a bank is exponentially greater than that of a platform like cash.
App arcane west forecast that the number of digital wallets will reach 75 or 200 million of the adult u.s population by 2023. With such wide availability, you have to pose the question of whether or not it's even worth it to make frequent trips to the bank anymore. Just like linear tv, i see a growing number of the younger generation using more of digital wallets and less of traditional banks with the completion of autonomous driving technology and evs. Traditional transport will have a tough time competing internal combustion engines have dominated the past few decades.

However, it's extremely clear that over the next decade, electric vehicles will continue improving and eventually take over internal combustion engines. When it comes to freight, rail autonomous driving technology will ultimately take over through the use of autonomous driving semi-trucks. It is true that today such technology is not available, however, over the long term in the next 5 to 10 years, freight rail will be disrupted. In particular, this is talking about the businesses and sectors that are relying too heavily right now on passive, investing passive, investing or more specifically, index fund.

Investing has been very popular over the past few years. This is because people are afraid of another bubble occurring like the tech and telecom bubble or the 2008 crash in order to decrease their susceptible risk index. Investors put their money into the broad market like the s p 500 to them. This gives them the ability to diversify their capital, so they don't get too heavily affected by sector crashing while receiving that historic, seven to eight percent annual return.

I do think this kind of investing is fine and is great for retirement funds and such, however kathy would believe that this type of investing will slowly disappear in the future and will cause many businesses inside these broad market indexes to fail. As we all know, tesla was only just added to the s p. 500. So by investing in general index funds, your allocated capital is less efficient than it could potentially be.

Investors are eventually going to realize this and in reaction just put more money into the s p leaders rather than the entire index. In fact, if we take a look at the s p's top companies, we can see that most are in the tech industry. These top 10 companies make up over 27 percent of the s p, meaning that the other 490 companies make up the 70 to the 73 percent. The five bad ideas stated by kathy wood earlier are due to get disrupted very soon and they take up 35 to 40 percent book value of the current s.

P 500, that is kathy, was contrarian outlook on the investing world today. Her views are definitely unique and not accepted by the traditional investing world at the current moment, but we will have to see what happens in the future. With this graph on arkhan vest's website, we can see a lot of their investing philosophy. I know i showed this graph in a previous video, but i cannot overstate this enough arc.
Invest's goal is to be ahead of the competition and the overall market. They jump in far before the rest of the crowd, which has definitely served them well so far, the early adopters in this graph represent the dot-com bubble in the year 2000, where too much capital funded too little innovation. Since then, for the past 20 years. Behind the scenes, long-term innovation has been occurring.

This is going to continue to happen with wright's law due to falling costs and increased productivity when the five investing platforms become strong enough to the point where we see them to start to converge. This would be absolutely revolutionary for society. If you enjoyed this video, please hit the like button and subscribe and i'll see you in the next one.

By Stock Chat

where the coffee is hot and so is the chat

36 thoughts on “Cathie wood warns of a stock market crash in “black hole” industries”
  1. Avataaar/Circle Created with python_avatars Steven Quinlan says:

    I believe the great expansion is coming and in the next hundred years we will be living throughout the solar system or we will all be dead

  2. Avataaar/Circle Created with python_avatars The Colour Squad says:

    If we could recover from the Great Depression and the 2008 Recession, we can probably recover from this as well.

  3. Avataaar/Circle Created with python_avatars Lucy Rodriguez says:

    Bitcoin and cryptocurrency have been making millionaires, although people are still having losses due to lack of experience, that is why it is advisable to allow a professional handle your trade. I recommend a professional broker "Maria Martinez", she is trustworthy.

  4. Avataaar/Circle Created with python_avatars Mark Brown says:

    Bitcoin is the beginning of something great: a currency without a government, something necessary and imperative I was living under average financial income until last year when i came in contact with a professional broker Ms Maria Martinez. Life have been better afterwards.

  5. Avataaar/Circle Created with python_avatars Filip 36 says:

    Hope you have your walking sticks at hand. A wheel chair might be better though !

  6. Avataaar/Circle Created with python_avatars Antonio Vega says:

    Im pretty sure half of those companies mentioned as S&P 500 leaders are actually in the DOW!?

  7. Avataaar/Circle Created with python_avatars AM Distant says:

    Everyone is jumping on the coat tails of Cathie Wood, helped fueled by dumb videos like this. The madness of the crowds. A lot of people will be left crying. Tesla is already sinking as I write this today. ARK ETF has lost almost 15% in one week and that's an ETF where it's spread amongst 50 odd companies. Greed leads to Craziness.

  8. Avataaar/Circle Created with python_avatars Rick H says:

    Ok, we just went from one of the best economies we've had in 50 years, to now one that is going to go in the total opposite direction, here's why! We now have a party in control of power and the country, meaning they can do whatever they want and no one can stop them! Problem is their leader is clearly not in control of his facilities and will only get worse as time goes on. Janet Yellen wants as much money as she can get her hands on to save the economy now, but who's going to pay for all that stimulus later? We will! Inflation like no one has ever seen before ever! The stock market crashing is nothing compared to what the real crisis that is coming will be! You think things are expensive now? wait until next year…..
    the $15 a hour minimum wage will kill already dying businesses. Job's will become even harder to find, people will be evicted from their homes and rentals, Interest rates, gas, utilities, and food will all skyrocket. Yeah the total opposite direction……

  9. Avataaar/Circle Created with python_avatars dev S says:

    it's a nice sales pitch by CW. i have some ARKW. will ditch it when it starts diving.

  10. Avataaar/Circle Created with python_avatars Cupcakelover says:

    Why are you referring to China? We should never trust CCP. Are you Chinese?

  11. Avataaar/Circle Created with python_avatars GTX 1050Ti Gameplays says:

    Disruptive innovation is the best stock to get in right now. Future is inevtiable. We will only grow from here. A.I. era.

  12. Avataaar/Circle Created with python_avatars No Hope Equals no fear says:

    I use cash…. not a credit card. I need a bank. I will never user a digital wallet

  13. Avataaar/Circle Created with python_avatars Landi says:

    7 or 8% returns are lame. Not even close to what one will need to retire, even after 30 years of investing.

  14. Avataaar/Circle Created with python_avatars Jayne Stevlingson Tamburello says:

    It would be helpful to have the dates filmed posted clearly somewhere. Thanks!

  15. Avataaar/Circle Created with python_avatars Lindsay Bush says:

    Why does a rich person lecture about technology whilst wearing glasses

  16. Avataaar/Circle Created with python_avatars KanedaSyndrome says:

    Linear TV = Flow TV

    We personally haven't had flow tv since we moved a year ago.

  17. Avataaar/Circle Created with python_avatars Marco Pollo says:

    Bruh most people can looks outside and see this shift in technology is coming. You should invest accordingly.

  18. Avataaar/Circle Created with python_avatars Hola! Paul Holterhaus says:

    Cathy Woods will/does say anything/everything to make a buck…….She is trash……Paul

  19. Avataaar/Circle Created with python_avatars Mildred Levine says:

    Good luck with coming inflation, the stock market is currently unpredictable! I most say I speculated in both forex and stock but stock is really doing the unexpected

  20. Avataaar/Circle Created with python_avatars Mark Martin says:

    When tv went from analog to digital in 2009 I didn’t have a tv or add ons to convert. So I basically stopped watching tv then. And cash back at retailers is what led me away from ever going to the bank. I think there are other influencers here that they didn’t talk about even before streaming and digital wallets

  21. Avataaar/Circle Created with python_avatars OSCAR1777 says:

    TV is passe and the future is crypto and AI … this is genius… just… amazing.. would have never have guessed..

  22. Avataaar/Circle Created with python_avatars Stories read aloud says:

    Physical banks are needed because issues need to be discussed face to face. Digital wallet replacing that? Hellscape.

  23. Avataaar/Circle Created with python_avatars fhjh jhgjghj says:

    The dirty staircase likely wipe because desire radiologically pump notwithstanding a naughty glue. sick, wry drum

  24. Avataaar/Circle Created with python_avatars Cleo Arevalo says:

    its hard to tell my whole story as there simply won't be enough space for me to type it in, long story short is that i have traded for years both by myself and some crazy fraudulent account managers and lost so much money that i had to apply for student loans in order not to drop out from college that was until i was introduced to Mr Thomas Kostas at first i was skeptical as i had traded and lost to lots of account managers but after some nudges by schoolmates and friends who had traded with him i decided to give him a try and that was the beginning of my success story, i'm so glad i trusted him against my not so better judgement lol, in the past 6 months of trading with him i have made an accumulated profit of a hundred and thirty three thousand pounds, i couldn't believe it until i made my first withdrawal, now i'm sharing the same testimony that was shared to me some 6 months ago.. he can be reached on email: thomaskostas34@gmail. com whatsapp: +1 409 209 3824

  25. Avataaar/Circle Created with python_avatars Alè says:

    Banks have digital platforms too. But they carry lots of costs from staff and building that make them less efficient. They can win the race but need to be faster with solutions to clients

  26. Avataaar/Circle Created with python_avatars Brian says:

    I got into investing two years ago, but if I would've heard of her back then, I would've given her so much money. She's streets ahead.

  27. Avataaar/Circle Created with python_avatars cresbydotcom says:

    You better believe it – the stock market is in a bubble that will burst any time soon. I ain't betting on a date – if I had one I would keep schtum, and lay my bets. But COVID has put a serious dent in the ability of the public at large to buy anything. Meanwhile stocks are still increasing. The market is overheated. By people telling you how good it is. Sure some stocks will still beat the system, but if I knew which ones I would lay my bets. This I know, buying Tesla is for long term speculation. And too late for the stupendous gains.

  28. Avataaar/Circle Created with python_avatars MMC says:

    What about the Tesla bubble will that pop wen we realize batteries are mind bogglingly stupid and hydrogen is the way to go and all the big banks create there own crypto currencies because bit coins is a magnet for criminals, you and your nerd girlfriend has no idea of what’s really coming. Elon musk works with the government to provide you idiots with misdirection so you fools don’t get a peace of the real future

  29. Avataaar/Circle Created with python_avatars MMC says:

    Lol all the new business you describe will be the destruction of mankind this video is pure crap

  30. Avataaar/Circle Created with python_avatars Noes Naula says:

    NOT EVE PABLO ESCOBAR COULDNT CONTROL COLOMBIA WITH TRILLIONS OF DOLLAR THE GOVERMENT WILL NEVER LOOSE THEIR POWER🤣🤣

  31. Avataaar/Circle Created with python_avatars Drake Stewart says:

    We know that the s&p 500 is market cap weighted right? As market cap is redistributed over time the s&p adapts. If I own the s&p today I already own tsla, amzn, aapl, alphabet, and all of the bigger tech companies.. there maybe be better indexes but the idea that the s&p won’t still be a freight train is silly.

  32. Avataaar/Circle Created with python_avatars kodenich says:

    It's funny she says that, because the most likely catalyst to start the market crash is going to be when ARK collapses.

  33. Avataaar/Circle Created with python_avatars sosua b says:

    better be watching BNGO. It was 51 cents on Dec. 15. Please do look at it today. NICE. The next Crispr?

  34. Avataaar/Circle Created with python_avatars Mike Spencer says:

    I mean I get the tv thing, but who is to say they don’t create better streaming services or buy out ones.. I personally just canceled Netflix for peacock.. it’s cheaper and way better. With sports and all.

  35. Avataaar/Circle Created with python_avatars Brian the Red says:

    Buzz words!
    My astrological signs predict up then down then a spin then up then Sideways and then up.

  36. Avataaar/Circle Created with python_avatars CC Chodkowski says:

    I guess Cathy woods is liquidating all of her assets now to prepare for the crash.

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