Sylvia Jablonski discusses the market dip, emphasizing it as a great opportunity for young long-term investors. The podcast covers the performance of thematic ETFs, the power of verified data and tailored AI, the impact of oil prices on the travel industry, and the growth potential of AI companies and hydrogen as an alternative energy source.
The stock market dip presents great opportunities for long-term investors to dollar-cost average and invest in thematic trades at lower prices.
Investing in tech themes like electric vehicles, AI, and machine learning can be driven by growth potential and future demand for these technologies.
Deep dives
The Importance of Having the Right AI for Your Business
AI has the power to generate solutions, but using unverified data may lead to problems. It is crucial for businesses to not just have AI, but the right AI tailored to their needs. IBM introduces Watson X, a platform that enables businesses to train, tune, and deploy AI using trusted data. This ensures that businesses create the most appropriate AI solutions for their specific requirements.
The Impact of Market Volatility on Thematic Trades
Recently, the stock market experienced a slowdown following a period of high performance. This affected thematic trades, including electric vehicles, travel stocks, and artificial intelligence companies. It is unclear whether this slowdown is temporary or indicative of a new market regime. However, it presents opportunities for long-term investors to consider dollar-cost averaging and investing in these themes at lower prices, as the future of technology and innovation remains promising.
Investing in Tech Themes and Consumer Strength
Investing in tech themes, such as electric vehicles, AI, and machine learning, can be driven by the growth potential and future demand for these technologies. The rise of electric vehicles, driven by factors like climate awareness and government support, presents significant growth opportunities. Similarly, the application of AI and machine learning across various industries indicates a bright future. Additionally, the consumer's strong spending pattern, especially in the travel industry, supports investments in sectors like airlines, hotels, and cruise companies.
Hydrogen and Alternative Energy
Investing in alternative energy sources like hydrogen is part of a broader push for environmentally friendly solutions. While hydrogen-powered vehicles have not reached the level of electric vehicles, they show potential growth, especially in regions like Japan and Europe. The hydrogen ETF offered by Defiance ETFs aims to capture this growth opportunity and attract investors interested in alternative energy. It is essential to diversify exposure and consider both established companies in the field and smaller players that may become major players in the future.
From artificial intelligence to electric vehicles and travel stocks, some of the previously hot equity-market themes have borne the brunt of the selling during the market’s dip in August and September. Sylvia Jablonski, chief executive of Defiance ETFs LLC, joined the What Goes Up podcast to discuss why that is. She also makes the case for buying the dip.
“Everyone kind of panics, sells off tech, sells off growth and goes back into cash, cash equivalents, staples and kind of the defensive types of plays,” Jablonski explains. But “these are actually great opportunities, especially if you’re a young person investing for the long term. These are amazing opportunities to dollar-cost average. That’s how I would characterize this market this year.”
