When you look at the stock market, you’re not just seeing numbers on a screen. You’re witnessing the collective power of human innovation at work. Every company in the S&P 500 represents thousands of people solving problems, creating solutions, and pushing boundaries in ways we couldn’t imagine just years ago.
Innovation Shows Up When We Least Expect It
Consider some breakthroughs happening right now that will reshape entire industries:
- CRISPR gene editing technology has moved from laboratory promise to reality, with the first approved treatment for sickle-cell disease curing symptoms in nearly all trial patients.
- Researchers have developed an AI foot scanner that can detect early signs of heart failure by analyzing photographs of patients’ feet to measure fluid levels. This breakthrough, presented at the British Cardiovascular Society conference in June 2024, could help prevent hospitalization and expedite care for thousands of people suffering from heart disease around the world.
- Google’s AlphaEvolve, an AI model solving complex math problems that have stumped researchers for decades, is unlocking new possibilities in fields like engineering, physics, and beyond.
Driving Growth by Solving Real Problems
Businesses focused on solving meaningful problems tend to see their earnings grow over time. Current market projections call for 11.5% S&P 500 earnings growth in 2025 compared to the previous year, reflecting the market’s confidence that companies will continue finding ways to create value. While specific projections can change, the underlying driver remains constant: companies that innovate tend to prosper.
The beauty of market investing is that you don’t need to predict which specific innovations will succeed. You simply need to believe that innovation will continue, because it always has.
The Unpredictable Nature of Progress
Innovation is such a powerful investment theme because we rarely see the breakthroughs coming. Twenty years ago, few predicted that a company focused on online book sales would revolutionize cloud computing. Fifteen years ago, who anticipated that electric vehicle manufacturers would become some of the world’s most valuable companies?
This unpredictability is part of what makes long-term investing so compelling. You’re not betting on any single breakthrough; you’re betting on the continuous human drive to solve problems and improve lives.
Staying Connected to Progress
When you invest in a diversified portfolio of great companies, you’re essentially purchasing a stake in this ongoing innovation. Markets experience volatility, and individual companies face challenges. But the businesses that survive and thrive are typically those that continue adapting, innovating, and serving real needs in the world.
This is why we encourage our clients to maintain a long-term perspective. Short-term market movements can feel overwhelming, but they often miss the bigger picture of continuous human advancement happening within these companies.
Building Wealth Through Innovation
At SageSpring, we believe in aligning your investments with your values while participating in this innovation-driven growth. The companies developing CRISPR treatments, AI diagnostic tools, and problem-solving agents represent the kind of forward-thinking organizations that have historically rewarded patient investors.
Your financial plan should account for the fact that progress may not always be obvious in the short term, but over time, innovation wins. The companies that consistently invest in research, development, and solving real problems tend to see their earnings grow, and those earnings growth patterns ultimately have driven long-term market returns.
When you stay invested through market cycles, we believe you’re positioning yourself to benefit from breakthroughs we can’t yet imagine. In our view, every point of market growth represents problems solved, lives improved, and human ingenuity at work. And that’s a trend we’re comfortable betting on for our clients’ long-term success.
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