October 15, 2025

 

(THE GROWTH AREAS IN THE FUTURE)

 

October 15, 2025

 

Hello everyone

 

What sectors should you look at going forward?

My research shows different answers to that question.  But there is some consensus when you pull all the research together and distill it down to the absolute basics.

Most important sectors (and areas of growth) are:

Precious metals

Energy

Small caps

Defence

AI

Robotics

Blockchain

Tokenisation

Digitalisation

Harvard-educated economist, Dryden Pence, who is the chief investment officer at Pence Wealth Management, believes we will see the S&P500 index lift in 2026.  His rationale behind this includes an expectation of strong earnings and lower interest rates.

His focus is on small caps, defense, and Artificial Intelligence.

In the U.S. Army, he served as a military intelligence officer, where he specialized in psychological warfare.  This provided him with rich insights into what makes people tick and a deep understanding of the geopolitical realities that can affect investments.

Pence believes we need to focus on understanding human behavior to predict consumption patterns and identify companies with chokepoints in supply chains that usually result in pricing power and excess earnings.

Pence is anticipating about 10% earnings growth for the S&P 500 index next year.  He believes that falling interest rates should help small and mid-cap companies.  Furthermore, Pence likes global defense stocks, which he expects will grow due to the unpredictable nature of the geopolitical environment and the fact that the U.S. is pushing allies to pay for more of their own defense. 

AI is the theme we can’t ignore, according to Pence.  He compares it to the lightbulb in terms of its potential to increase labor productivity and characterizes the present time as a “transformational moment.”

He notes that in two months, ChatGPT got 100 million subscribers, whereas Facebook took five years to achieve that figure.  The speed with which we absorb this technology and how human beings embrace it or try it has gone up exponentially.

And we are only at the early implementation stage.  Watch this space.

We can also not underestimate the impact of tokenization on the economic landscape.  Investing will become cheaper, more accessible, transparent, and efficient.

Thanks to the Genius Act, a revolution is quietly taking place in financial markets.  This revolution is powered by asset tokenization, a concept that leverages blockchain technology to digitize and fractionalize ownership of real-world assets, like stocks, bonds, and real estate.

This has nothing to do with digital payments or cryptocurrencies.  At its core, tokenization will arguably be transformative for global finance. 

It has the potential to increase access to financial markets via opening up ownership of previously inaccessible assets, particularly for retail investors and people in emerging economies who have found it difficult to access traditional financial institutions.

Marc Baumann here highlights what Larry Fink of BlackRock is doing & has just recently expressed:

Marc Baumann (Founder & CEO of 51 Group)

: ’

Larry Fink just dropped a bombshell this Tuesday:

“We need to be tokenizing – especially those with multiple intermediaries.”

Fink basically told Wall Street that the world’s largest asset manager, $. , is preparing to –.

And “It is our belief that we need to be moving rapidly”.

What he meant:

“If we can tokenize an ETF, we can bring investors who start with crypto into traditional long-term products. Over the next decade, we’ll move away from traditional assets by repotting them in a digital form and keeping investors inside that ecosystem.”

In short: meet next-gen investors where they are: on-chain.

And they want to own the interface.

That’s huge.

And it’s the clearest signal yet that we’re going to enter a tokenization super-cycle.

And BlackRock wants to be part of it.

Here’s what’s really happening

BlackRock’s quietly building .

They’re already talking to “all the major platforms” about wallet integration.

Tokenizing assets enables:

• instead of T+2
• (no middlemen)
• / to global markets

Their BUIDL fund hit $2.83B, one of the largest tokenized assets in the world.

They invested $47M in Securitize, an early tokenization pioneer, this year.

And they run the biggest Bitcoin ($93B) and Ethereum ($17B) ETFs.

So what?

Tokenization is the next trillion-dollar frontier expected to hit $20T by 2030.

And BlackRock is making sure it controls the rails.

We’re not just watching ETFs go on-chain.

We’re watching the infrastructure of capital markets being rewritten.

 

 

 

Cheers

Jacquie