Goldman Sachs released its list of “emerging trends” to help investors “separate the hype from reality.”
“What happens when everything old becomes new again?” the bank asked Wednesday in the second edition of its “Outsiders” series.
Some of the items on the list are more recognizable than others. The eight trends Goldman identified are: facial recognition, digital twins, meatless meats, quantum computing, ethereum, alternative risk premium, and special-purpose acquisition companies – or SPACs.
“Facial recognition technology dates back to the 1960s, veggie burgers have been a meat alternative for decades and gaming made headlines in 1980 with Atari’s National Space Invaders tournament,” the Goldman team working on the report, led by Robert Boroujerdi, wrote. “Digital Twins were used in NASA’s space exploration days, academics have spent decades identifying market risk premia and SPACs can trace their roots back to 18th century England.”
Arguably the most identifiable use of facial recognition is in Apple’s new iPhone X. The new phone—which is Apple’s most advanced phone to date—replaces Touch ID with the cutting-edge Face ID for unlocking the device and for mobile payment authentication.
Ethereum, the second largest cryptocurrency by market cap, is getting the most hype of the trends Goldman identified. The cryptocurrency has surged from around $8 at the beginning of this year to just over $430 today, an increase of over 5,200%.
According to Goldman, meatless meats are benefitting from growing demand for protein around the globe. Digital twins, which are “virtual models of physical systems that can be tested and tweaked early in the design process, have been expanding into new industrial uses.
“Despite their history, these products and platforms have reached a potential tipping point as they demonstrate real world usability and rise in adoption,” the Goldman team concluded.