By Bill Studebaker, CIO & President, ROBO Global
Even as IPOs and special purpose acquisition company (SPAC) deals have stalled over the past couple of quarters in the face of a drop in public equity valuations, M&A and startup funding in robotics, AI, and healthcare technologies has remained robust recently as seen through five constituents of the ROBO Global Innovation Indices receiving takeout offers in the month of May. The race to digitize and automate is on. For many business leaders and companies around the world, automation is one of the top priorities as they strive to thrive in the face of tighter margins, stronger competition, and a challenging economy. Larger organizations are increasingly focused on building strength through automation, and in many cases, they are behind the curve. To move quickly, these organizations might acquire rather than build, and they are clearly ready to pay the price for quality businesses and the automation technologies that provide.
The good news is that it seems the valuation reset has largely played out. Already, that reset is leading to better opportunities for investors. As Franklin D. Roosevelt once said, “A smooth sea never made a skilled sailor.” This may be the moment for skilled investors to position their portfolios for better times ahead. While volatility indices should continue to remain in top of mind, the present conditions are far from prohibitive in the quest for long-term potential returns.
1 Morgan Stanley Capital International
2 ROBO Global®, S&P CapitalIQ, For standardized performance data current to the most recent month end, please visit www.roboglobaletfs.com.
4 Facebook Apple Netflix Google
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This material represents an assessment of the market environment at a specific time and is not intended to be a forecast of future events or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice regarding the fund or any security in particular. Please consult your financial advisor for further information.