It’s a tidal wave of technological innovation, and economies across the globe are already feeling the waves. After a tumultuous three years in the markets, investors may be looking for a break from the volatility. But we don’t think that’s what we’re going to see.

Taking a step back from current events, we observe that one way to mark the most significant changes in human history is to analyze how technology has impacted our lives. Technological innovation has come in many forms and includes everything from prehistoric stone cutting to the latest virtual reality. Along the way, metallurgy, the printing press, steam power, the cotton gin, airplanes, space flight, of course the internet and smart phones changed our world.

Technological innovation is perhaps most significant when it forces a rapid re-ordering of economies. Most technological innovations have improved our standard of living, on the whole, and expanded the global economy. Workers benefited greatly if they could adapt to the changing demands of the labor market with new skill sets. Some workers were left behind. The companies and countries that navigated these changes most adroitly were able to create prosperity on a scale unimaginable to a prior generation.

Over the last century, it became possible for an individual to benefit from technological innovation just by investing. Equity investors with capital to deploy didn’t need to have new skill sets. They just needed to be diversified and to stay invested during the inevitable market dips. Equity investors are protected from the changing world in this way, and this will be the key to surviving a world that is about to undergo what could be the biggest technological innovation in human history.

In our 2023 Q1 Annual Market Report Presentation featured in the video above, we will go into more detail about how our investing strategies can help you stay afloat as the tidal wave comes ashore.

This is Eric Cramer, Chief Investment Officer for BIP Wealth.

Disclosure: This communication contains general investing information that is not suitable for everyone and is subject to change without notice. Past performance is no guarantee of future results and there is no guarantee that any views and opinions expressed will come to pass. The information contained herein should not be construed as personalized investment advice, tax advice, or financial planning advice, and should not be considered a solicitation to buy or sell any security. Investing in the stock market and the bond market involves gains and losses and may not be suitable for all investors. The Global Equity index is the MSCI ACWI IMI Index, which is a free float-adjusted market capitalization weighted global index selected as the best available proxy for a diversified stock portfolio consistent with modern portfolio theory. Approximately 60% of the index is comprised of the U.S. stock market and 40% is comprised of international stock markets, including both developed and emerging countries. The “Net Total Return” version of the index is reported here, which means the index reinvests dividends after the deduction of withholding taxes, using a tax rate applicable to non‐resident institutional investors who do not benefit from double taxation treaties. The U.S. Fixed Income index is the Bloomberg U.S. Aggregate Bond Index, which is a broad-based benchmark selected as the best available proxy for a high quality, diversified fixed income portfolio suitable for a U.S. investor. It is comprised of the Bloomberg U.S. Government/Credit Bond Index, the Mortgage-Backed Securities Indices, and the Asset-Backed Securities Index. It is an unmanaged market value-weighted performance benchmark for investment-grade fixed-rate debt issues, with maturities of at least one year, and an outstanding par value of at least $100 million. The “Total Return” version of the index is reported here, which means that dividends are included and reinvested.