What is presented below is not new. Cathie Wood has been evangelizing this concept for more than the past five years. It is good to review this as LOTM has bought into this concept completely. Our approach has been a barbell investment approach with one of the five technology approaches fully embraced and Natural Resources as the other barbell –
Crypto/Blockchain as one barbell and Natural Resources with a focus on Gold Silver Copper and recently Natural Gas as the other barbell.
As Cathie projects, these five technologies are converging whereas the five emerging technologies in combination act as a catalyst, accelerating the advancement of all the emerging technologies.
It is this concept that allows LOTM to gain knowledge on one area with little fear of missing out on the other four innovation areas.
You however may feel differently, hence our review. Cathie’s ETF’s allow one to take a broader approach to investing in the five different technologies in a diversified manner by owning exposure to each of the five areas in a multi-company, active managed approach.
This is more of a shotgun approach vs our LOTM rifle approach to investing. Because we are dealing with new technologies in both the rifle approach and the shotgun approach, VOLATILITY is a common feature of both. Arrived at independently, Cathie Wood and Tom Linzmeier have the same risk management approach. In expanding markets, otherwise called bull markets, we tend to own more companies for exposure to the rising trend. When contracting market happen, otherwise called bear markets, neither of us exit the market through the use of stop losses. We both reduce the number of companies held and reinvest those proceeds into the companies we consider our core holdings, also stated as highest conviction positions.
This is our risk management approach. It is common in the world for creating wealth. We are seeking bigger position sized holdings, usually done in contracting markets and combined with a desire dollar-cost averaging and getting long-term capital gains.
Traders, people who have achieved greater wealth &/or people who no longer have cashflow income, have a greater need to preserve money and they might use a stop-loss risk management approach with their money.
The point in mentioning this is that both LOTM and ARK Funds are volatile and will experience swings of exaggerated ranges in both rising markets and contracting markets. If this is not in your style of managing personal assets, it doesn’t mean avoiding either Tom or Cathies” approach. Rather be aware of the volatility of our approach and use stop losses on our approach to regulate your personal control that allows you to sleep comfortably at night.
Now, onto todays topic:
The Five converging innovation platforms:
- Artificial Intelligence (AI): AI is a central, cross-platform technology that is accelerating growth across all other major innovation areas. The rapid evolution of AI, particularly in areas like machine learning and neural networks, is making intelligent devices more powerful, enabling breakthroughs, and driving exponential growth.
- Robotics: This platform encompasses both industrial automation and the rise of general-purpose robots, including humanoid robots that can collaborate with people and perform a wider variety of tasks. The convergence of robotics with AI is expanding the potential for automation and is projected to create a massive revenue opportunity.
- Energy Storage: Innovations in battery technology are a key driver for the shift towards renewable energy and electric vehicles (EVs). Decreasing costs for energy storage are powering the adoption of EVs and could dramatically lower the cost of transportation.
- Multiomic Sequencing: This platform involves collecting and analyzing multiple “omics” data sets—such as genomics, proteomics, and transcriptomics—to gain a comprehensive understanding of biological systems. When combined with AI, multiomic sequencing can accelerate drug development, reduce costs, and shorten research timelines.
- Public Blockchains: Building on the technology that underpins Bitcoin, this platform has catalyzed innovations in digital assets and decentralized finance. Public blockchains can provide a secure, transparent, and immutable ledger system that is transforming how transactions and data are handled.
Why these platforms are considered “converging”
The unprecedented economic and social changes of this era are not driven by any one technology alone. Instead, they are fueled by the synergy that arises from these five platforms developing simultaneously and accelerating one another.
This process mirrors historical periods of profound change, such as the convergence of the internal combustion engine, electricity, and the telephone over a century ago. For example:
- Robots become more intelligent with AI, and are powered by advances in energy storage.
- AI is used to rapidly analyze the vast data sets produced by multiomic sequencing.
- Blockchain technology provides a new foundation for secure data sharing and transactions across industries transformed by these other platforms.
Posted below are two short videos that build on the statement above.
World’s Top Innovation Investor: The Big Tech Boom Starts Now
Produced June of 2025 – 29 minutes presented by Cathie Wood, founder of ARK
If You Hold BTC or Crypto, A Supercycle Is COMING – Cathie Wood
Published Aug 25, 2025 – 13 minutes by Library of Wealth quoting Cathie Wood
Here is a link to Cathie Wood’s ARK Invest ETF funds: https://www.ark-invest.com/
Good fortune to us all!
Tom
LOTM Research & Consulting Service
* An account related to LOTM holds a position in this security.
Neither LOTM nor Tom Linzmeier is a Registered Investment Advisor.
Please refer to our web site for full disclosure at www.LivingOffTheMarket.com ZTA Capital Group, Inc.
To Unsubscribe please select “return” and type Unsubscribe in the subject line.
