September 8: This Week's Thematic Reads

Our stance has always been that thematic investing reflects the shifting landscapes in the world around us. With that in mind, we are once again sharing several "ripped from the headlines" signals for our targeted exposure, themes, and what they support.

More of these signals that support the themes and strategies at Tematica Research can be found here. I also use insights from these and other signals to manage TheStreet Pro Portfolio.

Artificial Intelligence

 “Artificial intelligence was ranked the most exciting emerging technology in the healthcare sector for the fourth year in a row, according to a survey of executives by the Center for Connected Medicine at the University of Pittsburgh Medical Center. Eighty-five percent of respondents agreed that AI should head the list, suggesting leaders think the technology has “significant potential” to improve administration, operations and clinical care, according to the report.” Read more here

“Airlines have ambitious plans to integrate generative AI into their operations. So far, these implementations have mainly focused on passenger engagement roles. This could soon change, however, as airlines explore how to leverage this technology in technical, back-end functionalities.” Read more here 

Artificial Intelligence, Cybersecurity

“From healthcare and financial services to government agencies, critical sectors around the globe are embracing the benefits that large language models (LLMs) and other AI systems can provide when it comes to driving efficiencies, enabling data-driven decision-making and powering innovative products and services. But 2024 has also been the year of the data breach and the cyberattack, with high-profile disruptions downing critical sectors — like healthcare, finance, retail and even government agencies.” Read more here 

Cybersecurity, Data Privacy & Digital Identity

“Cisco’s site for selling company-themed merchandise is currently offline and under maintenance due to hackers compromising it with JavaScript code that steals sensitive customer details provided at checkout... While Cisco’s store is likely used mostly by employees buying the merchandise for themselves or as gifts, the malicious script could potentially allow the attackers to harvest Cisco employee credentials.” Read more here 

Data Privacy & Digital Identity

“California state legislature passed a bill that will require internet browsers and mobile operating systems to let users opt out of the sale or sharing of their personal information. The bill now heads to California Governor Gavin Newsom for his signature.” Read more here 

Digital Infrastructure

“Despite ongoing challenges, including economic uncertainties, extended lead times in chipset supply, and a gradual economic recovery in China, IoT Analytics projects the market will continue its upward trajectory. The report forecasts that the number of connected IoT devices will grow to 40 billion by 2030, reflecting a measured but steady expansion.” Read more here 

Digital Infrastructure, Energy Pain Point

“Artificial intelligence could strain the U.S. electric grid, as power demand from data centers is poised to surge in the coming decade just as supply is falling due to the rapid retirement of coal-fired plants. Data centers in the U.S. alone could consume as much electricity as some major industrialized economies produce by 2030, as they proliferate not just in number but also in the scale of their power needs.” Read more here

 Digital Lifestyle 

“Cable TV is continuing to lose viewership in 2024 as many Americans switch over to streaming and other methods to watch TV. According to a new report from Nielsen, cable TV now accounts for just 26.7% of all TV viewership and streaming accounts for 41.4%.” Read more here 

EV Transition

“JD Power is projecting that 1.2 million EVs will be sold in the US by the end of 2024, an increase over 1 million sold last year. That’s 9 percent of total vehicles sold, which has been revised down from a previous prediction of 12 percent.” Read more here 

Safety & Security

 “House Armed Services Committee Vice Chairman Rob Wittman is confident Congress will pass a short-term budget extension in the next few weeks and eventually finalize plans for $833 billion in defense spending for fiscal year 2025.” Read more here

“Japan’s military spending is edging closer to its targeted 2% of gross domestic product (GDP), with big new budget earmarks for drones, missile defense, satellites, cyber defense and cloud-based command and control systems.” Read more here

“Poland’s budget proposal for 2025 includes record defense spending of 187 billion zlotys ($48.7 billion), officials said Wednesday… Finance Minister Andrzej Domanski said that the defense spending proposal would constitute 4.7% of gross domestic product, compared to 4.2% this year, which already makes Poland a leader in NATO and in the European Union.” Read more here

“Taiwan’s Cabinet, the Executive Yuan, this week ratified a record defense budget of NT$647 billion, or US$20.2 billion, meant to help defend Taiwan against the prospect of a Chinese invasion.” Read more here