In recent discussions on the future of exchange-traded funds, The Wall Street Journal prominently mentioned that technology and Social Media continue to open fresh opportunities.
Perhaps the biggest change that online trading technology has brought about is to democratize access to the markets, allowing individuals to make their own trades without the costs and time lag that were associated with the old way of doing this.
The financial services industry has been visibly transformed by software over the last 30 years. Practically every financial transaction, from someone buying a cup of coffee to someone trading a trillion dollars of credit default derivatives, is done utilizing software. And many of the leading innovators in financial services are using software directed toward the alternative investments to find new areas of growth. Self-directed investors and organizations are reshaping the financial industry and as this happens they are looking for unconventional alternative investment solutions.
The newest generation of investors is the first to grow up entirely in the age of digital tools, smartphones and the game changing internet. The emergence of the digital economy has empowered these investors with advanced information, financial education, tools, and big data through advanced trading platforms at their fingertips.
New generations are increasingly learning with innovative new tools and looking at the investment process as a do-it-yourself project, using technology and social networking to invest into ideas, not asset classes. They now select investments based on their personal interests, such as investing in movies stock, and going the extra mile to learn and understand what ideas and sentiments are more relevant for their portfolios, rather than standard cash flow ledgers and income statements.
Those companies also offer strategic diversity and bring together slates of properties that boast a solid managed-risk approach. Production, distribution channels in theaters, and later distribution via Netflix or other mass media, ancillary products and much more are factored into the process before resulting investments are made.
With new technology, it has become easier and rewarding for those who realize that the process starts by partnering with who has the best end-to-end strategy, not the biggest names attached.