2021 - Two growth sectors to watch

2021 news Dec 14, 2020

Published by Anthony Di Pizio

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Starting Fresh

Like most of you, we look forward to welcoming the new year and leaving behind the craziness of 2020. With vaccines now being distributed in most major developed countries, we anticipate the return of economic growth and more normalised financial market conditions. 

We want to turn our attention to 2021 and leave you with two underdeveloped but powerful sectors we're watching.

1. Agritech

Agriculture is primed for a shakeup. It has mostly been left behind by the technology boom and whilst farms are more productive now than in the past, there has never been a better time to transform the industry. 

Traditionally, farming has required mass amounts of land and water at a minimum, plus additives for crop protection and allowances for seasonal disruptions caused by unfavorable weather. 

We're closely watching a select handful of private companies developing unique methods of farming indoors at scale. Imagine a farm that could produce crops with the following benefits:

  • 90% less water usage
  • Smaller footprint by farming vertically (less land required)
  • No pesticides whatsoever
  • Consistent product by size and nutritional value, eliminating waste
  • No weather risk - grow all year round!

Costs associated with energy usage have been one main hurdle to achieving scale and making these projects profitable, however some of these innovators are selling (very successfully) in supermarket chains around the world. 

We will keep clients updated when these companies eventually reach the public markets!

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The attached material shows past market performance. Please note that past performance and historical data are not reliable indicators of future performance and market behavior. The past performance information provided is based on the following assumptions:
Performance is measured from ADS Capital's inception on July 31st 2020 to January 14th 2021. Updated monthly; Figures take into account commissions associated with buying our portfolio of stocks, but do not account for taxation; and assume an equal weight allocation across the portfolio.

2. Space Commercialisation

You may not know this, but commercial space took a huge leap forward last weekend when Virgin Galactic set out on their first of three test flights. This was a manned trip to the edge of space and although they didn't reach such heights due to an engine malfunction, the spacecraft and crew landed safely without a scratch.

These three tests act as a step towards flying paying civilians on ''tourist'' trips to the very edge of space, which will no doubt lead to some exciting progress for travel beyond Earth. 

We also know Elon Musk's SpaceX has plans to travel to Mars and set up a base on the Moon. With Starship's almost successful test flight last week, they now have a solid foundation to build upon and make these aspirations a reality in the very near future. 

It is clear that we are now moving beyond just satellites as a source of revenue in space. In the next 5 years we expect to see this industry grow exponentially as more private players tap the public markets for funding, which will in turn offer investors an opportunity to get involved.

For companies like Virgin Galactic, it's not just about space. Their collaboration with Boeing involves the development of what will be known as ''Point-To-Point'' travel right here on Earth, designed to cut international flight times by as much as 80% in some cases. Sydney to London in just a few hours? Maybe! As always, technologies developed for space exploration will inevitably be adapted to improve life on this planet. 

Whatever happens, ADS Capital will write and deliver the research to help you capitalise!

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