The top two investment megatrends of this decade will be technology and responsible investing.
Quite the bold statement, I know.
As countries around the world begin to ease their coronavirus-fueled lockdown restrictions, we’re looking ahead to the post-pandemic era and a progressive economic recovery.
The coronavirus crisis has accelerated innovation at lightning speed and increased expectations. The future has arrived a lot faster than we thought.
This is why I believe that there are two principal forces that will undoubtedly be the investment megatrends of the 2020s, and will potentially be worth tens of trillions of dollars.
First, technology. The digital revolution is happening now. Our everyday lives are becoming more and more digitalised at breakneck speed.
The fast progression of digital technologies is already profoundly changing business models, institutions and society as a whole, with the pace likely to be accelerated as technology continues to evolve.
The potential for new and emerging businesses and industries is bigger than ever within the digital revolution, and as a result, retail and institutional investors are being attracted to the immense growth and opportunities.
We only need to look to the global stock markets to see the future economy, with markets being driven up primarily by technology-based companies.
It is because of this rapid advancement of technologies affecting every area of our lives that deVere is developing a major digital finance operation in Dubai, which I announced last week.
Megatrend number two, I believe, will be responsible environmental, social and governance (ESG) investment.
The pandemic has heightened society’s collective awareness and mutual responsibility.
Indeed, there is enhanced recognition and understanding that the coronavirus crisis could soon be eclipsed by a climate crisis.
It has shown the importance of maintaining supply chains that are both sustainable and diverse, and revealed that those businesses with robust corporate governance and good business practice are best-placed for the future.
We’ve seen evidence of this within investments with a strong ESG presence continuing to outperform during recent periods of stock market volatility.
Naturally, retail and institutional investors will not overlook the huge growth and opportunities that such a pattern of change generates.
In investing, it’s often said that a ‘trend is a friend.’ Well in that case, a megatrend will probably be your best friend.
Megatrends impact how we live and work every day, and thus they impact global markets and investor outcomes.
Nigel Green is founder and CEO of deVere Group. One of the world’s largest independent financial advisory organizations, de Vere does business in 100 countries and has more than $12 billion under advisement.
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