When we remember being kids visiting amusement parks or maybe having a special birthday with certain characters there was always a theme. Nowadays we’re seeing a lot of buzz around thematic investing which has been covered widely and we have a unique take that we’re going to cover in this post.
First and foremost, some of the best destinations to escape reality and either reflect on the past or try to understand the future are exactly that: Fantasies. That’s why certain places are called the most magical on earth when you’re there, however when you’re not things become more bleak.
Taking things a step further, this is similar to seeing certain trends in the world like investment opportunities as shiny objects which inherently introduces emotions that many times equate to failures because you let your heart/ego, cognitive biases and preconceived notions get involved in the investment decision-making process.
Even though we all wish we could be Miss Cleo the psychic that became famous in the 1990s with her television commercials, it’s just not reality and if most people could actually see/predict the future we would have a lot more millionaires and billionaires today, but that’s not the case.
Secondly, the concept of thematic investing and the recipe used there is important – like utilizing AI and especially custom LLM models – however the process of elimination or maybe escalation/de-escalation needs to be done in a black box with no emotion involved.
Yes, you may love XYZ company because their products and mission jive with your vision and desire to change the world together, but the dollars have to make sense.
Imagine believing in a trend, spending millions of dollars riding that wave then it turns into nothing. On the flip side, if you started with a Scrum-based approach that purely looks at the numbers/analytics in small slices of time you’d quickly realize if something is working or not working.
This is just one example of what we’re seeing today based on analyzing the markets/trends and will be sharing more soon!