As technology improves, interest in space travel has once again increased. This year marks the 50th anniversary of the first moon landing and today, a generation of dedicated entrepreneurs and other investors are driving a new space race and helping develop this field. Where once the US and ex-Soviet Union vied for supremacy in space travel, countries like India and China are also now heavily involved with the sector.
While this is a very long-term prospect, improvements in technology and innovation and falling costs look set to drive progress in space travel and could drive further investment in areas such as space tourism or even, in the longer term, exploiting valuable mineral reserves on asteroids or other planets.
Investing in the companies developing rockets is highly speculative, but looking at the supply chain, any reduction in weight could lead to significant fuel savings and 3D printing techniques in particular are very well suited to developing new structures that reduce material and weight, while ensuring structural strength is retained. All of this could lead to potentially promising investment opportunities in this and other space-related areas in the future.
Paul Flood, portfolio manager. Newton, a BNY Mellon company