The Future of Space Stocks – ARK and the Advent of Space Tech
News of Cathy Wood’s ARK Invest planning to make a space disruption tech ETF really has stoked our imagination in early 2021. Whether you are a new young investor or a sci-fi influenced older investor, the space technology industry will be pretty incredible in the 2030s and 2040s. So why not invest in it at the start of the 2020s?
These companies could be lifetime holds, or multi-year holds that could help some young people today get rich. This is because Bezos and Musk, the richest people in the world, really want the colonization of Mars and a space exploration age to dawn.
There are many companies operating today that will in 5-7 years make their way to the stock market. Already one can feel the potential of SpaceX, BlueOrigin and Starlink to transform how we see space.
Try to think like a Robinhood investor. You want to be part of the future. Space is cold, but space investing will heat up. It will likely even become a bubble like we have seen with the EV sector, genomics and hydrogen hype. What could be more epic than space hype? It’s the ultimate future speculation.
Plainly the idea that we only have one Earth is false. The galaxy is likely littered with millions of Earth-like planets, many of them devoid of intelligent humanoid life.
ARK Invest, founded by technology disruption guru Cathie Wood, is planning a new exchange-traded fund focused on space stocks, based on filings with the Securities and Exchange Commission. We’re not such a fan of ARK or Cathy Wood as disruptor pretenders, but this is one of their better ideas.
With ARK’s score in Tesla, Elon Musk-owned SpaceX and Starlink look like cows to milk for the ARK Invest crew. SpaceX and Starlink represent entire ecosystems that other businesses can be founded upon. The company has pioneered the use of reusable rockets, driving down the cost of reaching low-earth orbit.
Those falling costs are opening up opportunities for companies looking at new satellite-based services and other business models. Don’t underestimate the future of space technology and how many jobs it will create.
SpaceX is private, so ARK’s space ETF won’t be able to buy shares of that firm just yet. But it can buy several others, and the potential demand from a new ETF made many investors take stock of space stocks.
While Space tourism seems like an absurd way to play the market, it could become lucrative for the ultra rich, and who knows by 2030 how many millionaires China will have.
What would the stocks in a space exploration exchange-traded fund look like? How much will China’s golden age of innovation contribute to the future of the space age? There are so many questions. One thing is for sure, however, investing in the best companies in the early days of the space tech race could pay off in the long long run.
ARK Investment Management, an asset-management firm led by Wood, filed late Wednesday to launch the ARK Space Exploration exchange-traded fund under the ticker ARKX. When the likes of SpaceX, Blue Origin and Starlink go public, the stock market will indeed be a new place. A hot place for the long freeze of finding new worlds.