The acceleration of innovation

In past generations, it took decades to embrace new technologies. Now, it often takes only a few years. As you can see in the chart below, it took more than 40 years for telephone landlines to grow from 10% to 50% market penetration. By comparison, the Internet, cell phones, tablets, and social media each reached 50% market penetration within a decade.

This rapid acceleration in technological adoption is leading to massive transformations across industries in mobile services, content, banking, medicine, and the Internet of Everything (IoE), to name a few. These new technologies are disrupting legacy industries as consumers embrace better, cheaper, and faster ways of doing things. Such an environment can lead to generational opportunities to create wealth.

Technological adoption rates: Years to grow from 10% to 50% market penetration

Technological adoption rates graph

Data and chart source:

What this means for investors

As investors continue to seek growth, now may be a good time to consider small- and mid-cap growth equities. This asset class is often at the forefront of innovation, isn’t held back by the “law of large numbers,” and is attractively positioned to benefit from the acceleration of change in our view.

To learn more about small- and-mid cap growth equities as a solution for growth, visit Define Your Destination and learn more about what your investments can help you achieve.

The views expressed represent the investment team's assessment of the market environment as of May 2019 and should not be considered a recommendation to buy, hold, or sell any security, and should not be relied on as research or investment advice.

Investing involves risk, including the possible loss of principal.

Past performance does not guarantee future results

Investments in small and/or medium-sized companies typically exhibit greater risk and higher volatility than larger, more established companies.