MoneyTalk Live - Cathie Wood, CEO of ARK Invest
[Music] hello I'm Greg Bell welcome to money talk live brought to you by TD direct invested every day I'll be joined by guests from across TD and elsewhere many of whom you'll only see here we're going to take you through what's moving the market to answer your questions about investing coming up on today's show we're going to be joined by noted investor Kathy Wood from Ark invest we'll discuss whether this Tech rally that we've seen has been fueled by AI can continue Money Talks Anthony aolia is going to give us a preview of tomorrow's key US inflation report and in today's web broker education segment Megan Hendrick's going to show us how you can screen for different ETFs using the platform so here's how you can get in touch with us if you're watching on YouTube just email moneytalk live td.com or if you're watching here on the platform and web broker you can fill out that viewer response box under the video player before we get to our guest of the day let's get you an update on the market it's got some green on the screen on both sides of the board we'll start here at home the TSX Composite Index a pretty healthy 235 points to the upside more than a full percent noticing a lot of the mining stocks getting a bid today uh gold silver some of the other Commodities are to the upside we'll check in on though different kind of uh commodity play Cho of course a uranium play it's making some gains today notice Dennis and mines in the same business also making some big gains at 7263 you got camoo up almost 9% be gold Riding High with the price of gold might something to do with J Powell's testimony for the second day now in Washington uh some of the headlines I'm seeing perhaps suggesting that they're opening the door just a little bit wider to a possible rate cut maybe in the fall barck up about 2% to 2429 now south of the board the S&P 5 the NASDAQ continued to build on record high gains you're up another 20 points today for the S&P 500 but a third of a percent the tech heavy NASDAQ how's it fairing against the broader market right now I think it's a little bit firmer up about half a percent or 93 points and the chipmakers we've been keeping an eye on Nvidia all week as it continue to make gains today one of its Rivals Advanced Micro Devices up to the tune of three and 13% $182.92 a share and that's your market update us markets continue to hit new highs and Technology artificial intelligence have been a big part of that story but can these tech stocks continue their AI fueled rally joining us now to discuss is Kathy Woods CEO and chief investment officer at ARC invest welcome back to the show great to have you here in person thank you Greg thank you for inviting me back all right so we're going to have a great conversation let's start with just for the viewers who may not be aware sort of of your process of the firm's strategy you focus on disruptive innovation what does that mean uh disruptive innovation is technological enabled and uh transformative uh so we're focused on five major platforms robotics energy storage artificial intelligence blockchain technology and multiomic sequencing in the life science space uh those are the major platforms they involve 14 different Technologies and what's so interesting today is AI is the biggest Catalyst behind really the convergence between and among these Technologies so is creating some spectacular opportunities uh like Tesla Tesla is the convergence of three of the platforms robotics autonomous vehicles which uh they're about to produce are robots uh energy storage they will be electric and artificial intelligence they will be powered by AI is that the key here when we think about artificial intelligence because obviously the first wave of it was do you have the gpus the graphic processing units that we thought were good for video games turned they're pretty good what Nvidia was making for artificial intelligence but realizing that it starts to pull a bunch of what we thought were disperate groups together yes uh um AI is probably going to touch every industry and every company out there so uh and it doesn't matter what uh what the sector is now Nvidia is really the hardware phase of the AI Revolution uh and they are building some software but they they historically have been a hardware company if this revolution is as big as we think it is then we should see those gpus being put to good work and I just gave you a good example um autonomous technology is going to transform transportation of all kinds not just cars but trucks and drones we're we're going to see uh deliveries by drone uh in the future it's all the same convergence and it's all catalyzed by AI the longer it takes to happen uh then the further ahead of itself Nvidia might become uh so we shall see okay further ahead of itself there are questions in the market after the rally we've seen we continue to set new highs on the S&P 500 the NASDAQ Tech being a big part of that people start thinking have I seen this before have I seen the dotcom era in my own you know experience and is it happening again what what what are we thinking of here in terms of when people throw phrases like reversion to mean uh well this is not like the teeken Telecom bubble the companies uh that are at the top of the indexes and driving them are very very profitable companies and very wellestablished companies uh so very different um if there's any time we're comparing uh this to it actually is the 1930s now that might sound surprising because uh uh that was the depression but if you looked at the concentration in the market in the early days of the depression you know it was back then the unemployment rate was up to 25% GDP dropped by 30% so there was this question our companies going to survive or not and it was binary and so you had massive concentration towards a few names AT&T was at the top of the list telepan was just making its way uh into the global economy uh and so um that concentration what happened after that what happened after that is we went into a a strong bull market it broadened out and smaller cap stocks they could be large just not Mega cap large mid small um they way outperformed the mega cap stocks and if interest rates come down as we believe they will we believe that will be the catalyst towards uh broadening this Market out that's interesting let's talk a bit about interest rates because obviously we're going to get an inflation print as we get those we try to figure out where Jerome Powell and the federal reserve's head may be Jerome Powell this week seem to be suggesting listen we're we're cognizant of the fact that if we keep race too high for too long we could hurt the economy seems like the the doors opening wide if we do see a cut this fall maybe two before the end of the year from the FED depending of the Market's right what what happens here for some of these tech stocks because there already been a pretty significant run yes but the Run has been very concentrated we do believe the market will broaden out uh and that is how we've positioned our strategies we're a very differentiated exposure to AI uh than the mag six uh I guess mag 7 I she said six I guess it's Tesla back in theou now after theun they bumped Tesla out last year but now Tesla's performed this year or is performing and uh so I think they might invite it back in it is the largest AI project in the world and uh even Nvidia on its calls uh these days is saying that the auto sector is probably one of the biggest uh beneficiaries uh and movers and shakers in the AI in the AI space we think that's going to be very concentrated to just a few winners and a winner take most uh strategy uh so yes we do think with interest rates coming down the market will broaden out and uh benefit the AI beneficiaries that we have in our portfolio many people are very surprised uh to see as much in the healthc care realm in uh the flagship strategy uh and we do believe that AI is going to help uh when converged with sequencing Technologies and Gene editing uh that we're actually talking about curing diseases uh not treating symptoms but curing diseases that's I can't think of a more profound application uh of AI and uh so we have as much in the multi-omic space which is what we call it uh as we do in pure playay technology as measured by gigs interesting stuff there if we're talking about you know inflation being tame central banks delivering Cuts our Central Bank already delivered one we're waiting for another one later this month uh people worry that inflation will be re United I think I think you have more of a view of a deflationary environment being more likely yes um yes in fact uh uh uh we see two ways that's going to happen it's already happening if you listen to quarterly earnings reports you listen to Walmart Target Costco Best Buy um you listen to Starbucks and Wendy's and um McDonald's they're all cutting prices because the consumer is under great pressure and it is the middle income consumer now that is capitulating uh and looking for these deals so that's a cyclical phenomenon um and that's outright prices coming down uh which rarely happens when you think about it right uh the second source of deflation is technologically enabled uh so the five Innovation platforms that I mentioned all of them follow learning curves uh which are expressed in in uh cost declines and and then price declines uh and uh the five platforms are highly deflationary but it's good deflation as costs and prices come down these new technologies will scale across more and more sectors and become Mass Market opportunities so these price declines are associated with booming growth uh so yes we think on two fronts cyclical and secular there are deflationary forces and that the surprises uh in the next few years are going to be on the low side of both inflation and interest rates again fascinating stuff finally your company is based out of the US for people who've been following you but you also been active in Canada as well I mean you're here right now tell us a bit about that uh yes we've partnered uh with bimo uh and we have three funds with them our Flagship uh uh one uh focused on the Next Generation internet which is uh just it's it's a the focus is importantly on AI and and Cloud uh and then uh the genomic Revolution which uh broadened out is the multiomic revolution so uh we're pretty excited uh we think that our actively managed portfolios are a very good complement uh to the uh well diversifi Diversified offering of more uh passive funds and index based strategies uh that bimo offers so we think it's a win-win interesting stuff and a great start to the program we're going to get to your questions about technology stocks for cathywood from Ark invest in just a moment's time mind of course you can touch with us at any time just email money talk live at td.com where you can fill that viewer response box under the video player on web broker right now let's get you updated some of the top stories in the world of business take a look how the markets are [Music] trading we were talking about the art icial intelligence boom will actually saw taiwan's semiconductor grow at second quarter sales at the fastest Pace in 2 years the world's largest contract chipmaker grew that Topline 40% in the quarter to $6.4 billion in sales Taiwan
semi of course supplies Nvidia and apple with Advanced AI chips Walmart says it's going to open five automated distribution centers to meet demand for its online grocery business the retail giant says the new centers will modernize the supply chain and improve their profit margins in the coming years years Walmart did see its e-commerce business grow by 22% in its most recent quarter smartphones we all familiar with them apparently they need to make way for the smart ring Samsung unveiling its Galaxy ring at the company as the company trying to step up its offerings of wearable tech the smart ring incorporates Health tracking apps and AI technology the move broadly seen as taking aim at Apple's foray into wearable te Tech quick check on the market we start here at home on Bay Street with the TSX Composite Index we got a nice move in some of the Commodities plays today and the underlying Metals we got the S&P TSX Composite Index up a very healthy 223 points a full percent and South of the Border as we await that inflation print tomorrow still try to weigh what Jan Powell's been telling lawmakers in Washington you do have the S&P 500 up another 22 points today pushing further into record high territory hey we're back now with Kathy Woods CEO and CIO at ARK invest taking your questions about technology stocks first one for you here Kathy what do you make of the big Market concentration we've seen in the Magnificent 6 Plus On's Magnificent Seven tech stocks uh well we think that uh there are two reasons this is happening one is interest rates did move up dramatically to 5% and so these companies have a lot of cash uh and they are cash-like Innovation names that's how uh that's how I describe them uh so they're they have the benefit of that and uh they uh have the wherewith to um experiment with and you know move move their businesses forward with artificial intelligence so uh they seem like the first stop for for uh a lot of investors that concentration um as I mentioned is uh is is something we haven't seen since the Great Depression which is kind of ironic um but uh cash back then was King as well uh and there were new technologies evolving AT&T was at uh the top of the uh when the market broadened out though it benefited so many other stocks more dramatically in uh the ensuing four years 1932 to 1936 uh and we think that's uh going to happen again and this is what we are positioned for uh with our strategies is part of that concentration in the seven the fact that you mentioned how much cash they have because the whole artificial intelligent Enterprise at least at this Hardware buildup phase does not seem cheap but you need Deep Pockets that's why I think about who could knock them off their perch it's like well you'd have to have a pretty deep pocket to get in there yes and well what's interesting also is they're getting into each other's Pockets uh if you so uh if you look at uh the what we call the hyperscalers so Amazon alphabet uh Microsoft they're the cloud providers they're the biggest uh consumers of gpus uh and uh they're developing their own chips all of them uh Google already has the TPU uh and Amazon I think it's called the graviton uh and you'll have you have another two hyperscalers meta metap platform evolving its own chip and even Tesla uh Dojo its new chip uh so what's interesting about Nvidia is its gross margins have escalated I remember them being in the 40s for a very long period of time uh they're approaching 80% now uh whereas their largest customers the ones I just named especially the cloud providers their cloud services gross margins are closer to 50% so when the hyperscalers see um uh their margins lower than one of their suppliers they basically think about vertically integrating uh they've done it before I've seen them do it before so uh that's something to watch out for I see another question now from the audience for Kathy someone wants to know how you're approaching investing in AI right now at the top of the show you talked about you know what might have felt like disperate groups all starting to come together or will come together yes well as I mentioned the largest AI project in the world is Tesla and so to demension that uh in the next five to 10 years we believe that the robo taxi opportunity broadly defined uh globally including China will scale from essentially nothing now to an 8 to $ 10 trillion Revenue opportunity that's not market cap that's Revenue uh and we believe that the uh taxi platforms the autonomous taxi platforms like Tesla uh are going to um are going to get at least half of that piie so in uh in the $ four to five trillion dollar range from again nothing now uh so it's a very big opportunity it is the biggest AI related opportunity out there in terms of the broader application this convergence of AI in the health care space as I mentioned is creating cures so uh crisper Therapeutics uh has been approved two of its therapies have been approved in the US the UK and Europe as effectively cures for two diseases that had no not only no cure but no treatment for symptoms uh beta Thalia and CLE cell disease and they're working on Diabetes now uh this would not be possible without the the convergence of sequencing Technologies to figure out what's mutating in a genome uh and artificial intelligence to uh be able to sift through the six billion bits of code in our genome uh and then combine that with editing editing out the program programming errors in our genome all of these Technologies are working together and we do think healthcare is going to be uh going to enjoy some of the most profound uh applications of AI I found it fascinating that use the word code to refer to our own bodies and What Makes Us tick and obviously the almost a convergence of what we're seeing in technology along with like you know this this crude matter I be called you go yes yes it's our genome and six billion bits of code I think we have 37 trillion cells in our genomes on average um human beings cannot sift through all of that uh we need the machines we need the AI we need generative AI which is where we are now so it's very exciting interesting stuff indeed as always at home make sure you do your own research before you make any investment decisions we're going back to your questions for Cathy wood on technology stocks and just a moment's time reminder of course you can in touch with us at any time just email money live td.com now let's get to our educational segment of the [Music] day if you're looking to find different types of exchange traded funds on the platform while web broker has tools which can help Megan Henrik senior client education instructor with TD direct investing joins us now and Megan good to see you're going to show us how we can find ETFs that cover certain parts of the market yes I will so as you know a lot of investors are interested in ETFs but there's so many out there that it can be difficult to find the right category for for them so let's get to web broker so I can show you these different categories once we're here we're going to go under research under Investments go to ETFs in order to see the different pre-selection categories we're going to change tabs to categories and from here you'll see these already created for you so we see precious metals we see global dividend if the category that you're interested in isn't showing it's possible that it's on the US category so to toggle between the Canadian and US categories we need to go to the top and change from the Canadian flag to the American one and now you can see that the categories have changed for instance now we can see digital assets technology Global large stock growth the last thing I want to show you is back in the overview tab so let's get back to it I'm going to scroll to the bottom until we get to our ETF quick screen tool this will allow us to put in the criteria that matters to us to really help in finding that right ETF for you so let's start off by putting in an ETF category I'll select a Canadian Equity so now we see that it's found 60 matches I'm going to add management expense ratio and select the lowest one we don't necessarily love paying fees so let's see if we can find so now we're down to 22 I'll add one last one of morning star rating and we'll put a minimum of four stars so now we can see that the system has found us 11 matches so this is a really great place to start to find the right ETF for you when building your portfolio and that is how you can use our search ETF categories in web broker great stuff as always Megan thanks for that thank you Megan Henrik senior client education instructor at TD direct investing and for more educational resources you can check out the Learning Center on web broker or you can use this QR code to navigate to TD direct investing's YouTube page where there are more informative videos here we're back with Kathy Wood taking your questions about technology stocks Lots coming in in just the past couple moments uh first one we'll take for you here Kathy what is your view of the Chinese EV makers like byd and Neo what sets Tesla apart from these very competitive car makers yes it's been very interesting to watch the Chinese EV Market Evol I think that Chinese Government invited China in first company ever allowed in without a local partner because it wanted to learn about this new way of man manufacturing vehicles uh and uh of course now we're seeing incredible performance by especially byd um uh and and byd's Heritage is in the battery space so uh um cell phones and so forth so really good start um the next wave of competition is autonomous and uh what's been so interesting to us is we did not think that the Chinese government would be very friendly to Tesla in that regard uh because this involves data that they consider uh you know a national security issue data about the roads and so forth um nonetheless they have they're partnering with B Apollo uh and uh in speaking with Buu uh the Buu team they think this is going to be a two-horse race the autonomous race is two horses Tesla and uh and uh Apollo which is really interesting because we put very little in our valuation for Chinese autonomous uh for Tesla so that's going to be a source of upside surprise if uh if Buu is right we don't see uh byd uh and Neo going after autonomous as aggressiv as um as Tesla and ba/ Apollo so um but but China wants to be first uh and they are opening the doors to Innovation because it is they're trying to effectively redress some of the issues property is in a bit of a meltdown there and they are um they're reorienting the economy towards technology which is a good thing you know when uh when we see unit growth going up that's associated with cost declines which accelerates The Innovation and impacts the rest of the world so we actually are very excited that uh that China is focused on innovation in the way that it is is is the risk of Tesla's foray then into this space uh the fact that China's Ambitions might mean that at some point they would favor a Chinese company like byid over a Tesla well that was our working assumption and and still is in terms of the way we've modeled it but uh uh we have been surprised that uh they're going to give Tesla access to data that we thought they would consider a a national security uh issue so um yeah I I I'm we're excited about what what what's going to come out of China okay another question now from the audience this one about November will the US presidential election impact technology you know we always say Innovation is bipartisan who who says they're against Innovation yeah running on a no Tech platform exactly who's against it so uh we and we are seeing uh bipartisan efforts even in the digital asset space when it comes to legislation uh so uh I think that's very reassuring okay so that'll be something to watch obviously as we grind closer to the fall uh someone wants to know we've talked about Healthcare and how can it can be transformed they want to know if there's any healthcare companies that are poised to benefit from that maybe what they could do some homework on well um I mentioned crisper Therapeutics a little while ago uh Sam karney the CEO of crisper introduced us to repair uh he is on repairs board uh so that that I would say is High Praise right there uh so repair Therapeutics is working in the same area area Gene editing and of course as I mentioned before you need sequencing Technologies artificial intelligence you know pulling together to identify areas where Gene editing will be impactful so uh we think the uh the the gene editing space broadly uh uh so another one in the US uh is intellia uh beam Therapeutics I is another one um we're we're also focused on uh names in the the tool space uh and companies that are harnessing AI to uh help discover new drugs uh so recursion Therapeutics is uh in that category absi is another one in that category when you talked about repair and you mentioned that the opportunity there what could be the risk here for a company like this is the fact that there'll be a lot of competition in the space well uh we think that in the technology space uh speed to Market uh does count picking the right spots uh counts uh we passed the biggest hurdles I think about four years ago the concerns around Gene editing especially crisper cast 9 the concerns were around is this going to cause off-target effects or side effect side effects that we we don't understand uh four years later we're finding it's it's quite a safe technology uh and so now the the the um battle is on you know each company picking uh different spots uh some of them trying to prove themselves out in the same spot because uh you need each company needs to prove the the safety and that it does have the technology but I think the safety profile was the biggest question and now is the adventure just seeing how many rare diseases to start with and then how many uh broad-based diseases uh will Gene editing apply to you know it's interesting to see crisper Therapeutics uh even think about diabetes it is responsible for in the US more Health Care spending because of the side effects of diabetes than any other disease uh and so that's a big big candidate and I know that uh Sam karney believes that this group of stocks uh is the equivalent of Genentech in the early days of the biotech Revolution Genentech Amgen and regeneron a few companies dominated uh the biotech Revolution I think some of these names are going to be the most important players in the uh Gene editing Revolution some fascinating ideas there for audience to do some homework on we're going to get back to your questions for Cathy wood on technology stocks in just a moment's time always make sure you do your own research before you make any investment decisions and a reminder you can in touch with us at any time do you have a question about investing or what's driving the markets our guests are eager to hear what's on your mind so send us your questions there are two ways you can get in touch with us you can send us an email any time at moneytalk Live atd.com or you can use the question box right below this screen here on web broker just write in your question and hit send we'll see if one of our guests can get you the answer right here at money talk live ahead of the US federal reserves rate decision later this month we're going to get a pretty key report Landing tomorrow morning that's inflation M talks Anthony joins us now with a preview of what to expect what are we expecting Anthony yeah so before we get to that uh you know this just new inflation report does come as the FED chairman adone Paul is testifying to Congress and Paul didn't give us much in the way of new information but he did state that the labor market is in better balance and that job gains have not been as broad-based now he also reemphasized the need for more good inflation proof that would strengthen the case for looser monetary policy now before we get the US inflation report tomorrow uh we did get a look at the fed's uh preferred inflation gauge for uh for May the pce index and there we saw that core PC cooled slightly from April but came in line as expected as did the headline print and as this chart shows uh the latest PC index marks the lowest annual rate since March of 2021 now looking ahead to June's inflation print tomorrow TD Securities expects core inflation likely rose. 2% in June assuming another large month-over-month retreat in gas prices but TD securities does expect that food price inflation will remain subdued uh with regards to housing they expect housing inflation to move lower along with hotel rates and new vehicle prices now with that backdrop TD security SE sees headline inflation coming in flat month over month again assuming that energy prices will continue to provide large relief now with respect to interest rates uh t Securities is still calling for two Fed rate Cuts this year one in September and another one in December Greg it's going to be a big report thanks for breaking it down Anthony my pleasure Money Talks Anthony aolia now for an update on the markets we are having a look at TD's Advanced dashboard a platform designed for active Traders available through TD direct investing let's jump into the heat map function here a nice view of the Market Movers we'll start with the TSX 60 we're screening by price and by volume as you can see we have fair amount of green on the screen camoo in the energy basket is clearly the leader a uranium play but interesting too we got some some the basic material mining stocks we are seeing firmer prices for gold silver uh some other key Commodities today so you got a kin Ross up more than 3% a bar gold ABX up about 2% we're talking Tech today if there's a name in the red interesting it's Shopify down of the tune of uh about 2% on Bay Street now South of the Border we see the S&P 500 the NASDAQ pushing into new all-time high my territory just going to narrow it down to the S&P 100 a little easier for me to look at and you can see it's ship makers dominating today you got Nvidia up 3% you got AMD Up 3 and a half% Intel not so much but also there's Apple for talking AI they've been getting in there lately as well they're up about a little more than one and a half per. okay we're back now with Kathy
Woods CEO and CIO at ARK invest lots of questions coming in for you Cathy that's what we like just showed apple on the screen what's uh what's the outlook for Apple well we do think uh with uh their AI moves recently um uh cooperating with or uh with open AI but uh open to working with other Foundation models as well uh that they're going to enhance the their services uh which is good uh so we'll have a refresh cycle um which will take them out of the flat Revenue growth uh that they have seen for the last year or so uh so that's good the question for us is um you know they have privacy policies uh and security policies uh and we think they will allow some of the benefits of AI onto their platform but probably they will not allow some of the freewheeling benefits that other companies will Embrace and um and and move into the market hopefully competing with uh with apple um Samsung might be a little bit more proactive in that way so it's going to be interesting moving forward how limited or not apple is in in terms of the AI features and functionality I hadn't consider that as part of the Apple story that's really interesting to me because the first I was thinking when you talked about bringing AI offerings to the phone I know my iPhone 12 which I currently have right now isn't going to be able to handle that they're going to look for a refresh yeah but I hadn't thought about the idea that for all the times I've been asked in the past couple years can we track you here can we track you there there there are those privacy concerns yes very much so and so we're just wondering okay and there are people who feel very good about that because they're a bit concerned about what AI might do and that might work to Apple's benefit we're having a big debate internally uh whether Apple is is in what we call now the sustained Innovation camp or in the truly disruptive innovation and we're coming down to of course it's the sustained Innovation front what what they doing is not going to be revolutionary it will be adding features and functionality and making uh making the phone even more useful in our personal lives because of all of the data they have on us uh but away from that it'll be very interesting to see what other companies do harnessing AI in much more provocative and creative ways I had a feeling I've had to ask my kids how the AI offerings are looking on Apple when they come because in terms of priority on my household for getting a new phone I'm probably at the bottom of the list they might be at the top of the list that's what it goes keep the kids happy all right another question now from the audience for Kathy this is about Corning I hadn't thought about this until I saw the story yesterday can Corning be considered a technology stock as opposed to Industrial I end it for a lifetime in part because of their unwavering commitment to research and fiber optics Etc is still important yeah I was looking at the Corning story yesterday and I thought oh this is what I've not been thinking about in terms of Corning the fiber optic stuff leading into AI yes yes and so anything that uh facilitates fast fter um faster streaming and so forth is going to benefit we would put uh Corning in the sustained Innovation category so it's no it's no longer uh revolutionizing in in terms of new technologies like it was in the late 90s as we were moving into the internet Revolution and Broadband Revolution broadly um but uh you know we it it is formative uh you know in terms of infrastructure buildout uh I know for a time there Google was building out its own fiber optic Network City by City because it was so frustrated with this with the service that changed AI May uh be another reason for fiber optics to be buil built much more deeply into each City interesting stuff there on Corning another question now from the audience we talking a lot about uh AI what other Trends in Tech Beyond artificial intelligence are interesting to you is there something in the world other than AI right now well as I said AI I is is uh is going to be converging with all of our other platforms so in the robotic space we're we're seeing a lot in um uh well we know Tesla is working on a humanoid robot has I think two now working in its factories uh pteridine is one of our Holdings uh bought Universal robots which uh it was a Danish company and um we believe that the the RO robotics Revolution is uh probably going to be um from such a low base from such a low base is probably going to be uh a big surprise uh I know that many people think you know there are 8 billion people in the world and we're all probably going to have our personal robots uh assisting us uh or maybe two or three in the household um so I don't know how many people think that's a reality anytime soon but the cost curve of iated with industrial robots is dropping so quickly that we think the proliferation is going to be faster than most people expect today robotics you know the the number of industrial robots in the world is something like 700,000 very low base why because they are so dangerous they've had to be kept in cages especially in autom manufacturing and other industrial plants uh well now they're going to be covered in sensors so that they can work alongside human beings how should we feel about that as human beings how should we feel should we be excited I mean as a kid I dreamed of having my own R2-D2 you know from Star Wars but now when I hear about like you know industrial robot should we be excited do we so there we think that this is a 25 trillion dollar market way out there half will be industrial half will be non-industrial more helping us um how should we feel I think in the workplace robots are going to make us all much more productive uh and just like AI generally is going to make knowledge workers more productive robots which uh combined with uh artificial intelligence are going to uh do a lot of the me menial work that we don't like to do uh and free up our time to do what we do like to do and uh so I think uh we'll be able to dig into our creative selves and and you know spend more time in that realm so we think robotics is going to be a very exciting and unexp unexpectedly rapid development during the next 5 to 10 years I mentioned uh you know Tesla the autonomous cars are robots just the fact that uh Elon has such uh ambitious goals for its robots these cars is going to accelerate uh the development in all other areas of robotics uh because again technology follows cost curves that are based on unit growth uh that's why we like China getting into anything that is technology and involves unit growth it'll help us move uh this new world of technology into the future faster so I think certainly robotics energy storage um we know that the big gating Factor uh now for data centers uh associated with AI uh is uh connecting to uh the the grid uh so we think um we think energy storage uh uh so generators and uh utility ecosystems that are putting storage units in uh they're going to become a more important uh part of the solution um blockchain technology uh we're we're very focused on how developers are building now finally the layer of the internet they should have built 30 years ago if they knew that Commerce and financial services would be a part of the internet so this we're going to see many more efficiencies coming about I think a lot of what you're going to hear me say is productivity and efficiencies uh for knowledge workers we think AI alone is going to increase knowledge worker productivity four to fivefold can you imagine doing four to five times uh the work you're doing today in not feeling overworked not feeling overworked there's going to be a lot of help from machines uh again freeing you up to do what you do best okay uh We've run out of time for fewer questions but just as a closing thought I mean we've covered a lot of ground right here for people thinking about artificial intelligence but the technology space obviously it's a longer term play what do they need to put in in the Forefront of their thought process well I do think if they uh if they're exposed to the broad-based indices out there uh which now are seeing significant concentration uh a way to mitigate the risk associated with concentration is to diversify diversify into more uh uh smaller medium and just large cap stocks touching all of the areas of innovation that we discuss today Kathy it was a pleasure having you here I'm so glad you can visit us in studio and I learned a lot and I look forward to next time get to chat thank you Greg thank you very much all right thanks to Kathy Woods CEO and CIO at ARK invest as always be sure to do your own research before you make any investment decisions and if we didn't have time to get to your questions today we're going to aim to get them into future shows you want to stay tuned for tomorrow's show Sam chai VP active fixed income portfolio management at TD Asset Management Will Be Our Guest we're going to get his reaction to that US inflation report that's going to land in the morning then we're going to take your questions about fixed income reminder of course you get a head start with those questions just email money talk live td.com that's all the time we have for the show today thanks for watching and we'll see you tomorrow [Music] [Music] [Music] he [Music] [Music] [Music]
2024-07-17 01:54
