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Goldman Sachs' 7 big predictions for the future

An unmanned SpaceX Falcon 9 rocket launches from Cape Canaveral, Fla., June 28, 2015. The rocket exploded about two minutes after liftoff, destroying a cargo ship bound for the International Space Station, NASA said.
Mike Brown | Reuters
An unmanned SpaceX Falcon 9 rocket launches from Cape Canaveral, Fla., June 28, 2015. The rocket exploded about two minutes after liftoff, destroying a cargo ship bound for the International Space Station, NASA said.

From the dramatic reduction of space travel costs to potentially curing cancer with cloud computing, Goldman Sachs is dreaming big and wants clients to also.

Goldman's Robert Boroujerdi sent a report entitled "Themes, Dreams and Flying Machines" to clients Wednesday. In it, the strategist presented seven such predictions that may seem like pipe dreams to some, but the investment bank feels strongly enough about them that it is telling clients to put their investment dollars behind these trends right now.

The seven themes are:

  1. "The blockchain could disrupt everything."
  2. "Space is once again the new frontier."
  3. "College may not be worth it."
  4. "Gen-Z matters more than millennials."
  5. "There will be another Flash Crash."
  6. "Lithium is the new gasoline."
  7. "The cloud can help cure cancer."

Here's are a breakdown of the Goldman dreams that can be invested in right now...

'Space is a new frontier again.'

Goldman states the pace of innovation in the space industry is accelerating thanks to new technologies and entrants such as Elon Musk's SpaceX and Jeff Bezos' Blue Origin:

"Space is becoming smaller, closer, and cheaper, reinventing an industry that has stagnated for decades and making room for new applications, technologies, and competitors. ... The lower price point for both satellite technology and launch services enables access for more companies. This will likely change the competitive environment by stimulating demand for space-based assets and increasing the supply of services like GPS, satellite, Internet, and precision mapping."

The cost of a space launch is less than 10 percent of what it was five years ago. Goldman believes costs will fall a similar amount in the next five years. Moreover as the number of space assets proliferate due to greater affordability, the need for security will increase.

The impact of this trend in the space industry will be profound on a number of companies.


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