Wealth Roundtable: Super-Trends for Mega Investors

 

Excellent info from the Business Times Wealth Editor on the super-trends that major investment firms are exploring for their clients.

At the core of the super-trends: demographics, transformational socioeconomic and political developments, technological and scientific progress.

#1  TECHNOLOGY AT THE SERVICE OF HUMANS

The expansion of digitalization into all areas of life (smart homes, smart industries, smart cities) provides more positive than negative aspects for people.

Look for particularly strong growth in:

  • Drone delivery systems (now being used for the first time by first responders e.g. after Hurricane Harvey)
  • Robots
  • Factory and warehousing automation software
  • Self-driving cars
  • The healthcare industry is anticipated to grow significantly as digital health takes hold.
  • Remote monitoring, especially for chronic diseases, is expected to result in savings in the US alone of US$30 billion
  • One-third of total US healthcare spending currently goes to the management of chronic diseases

See below for more.

#2  URBANIZATION & INFRASTRUCTURE SPENDING

  • The global urban population has risen by 65 million people annually in the past three decades (equivalent to adding seven Chicagos a year, every year)
  • In the next decade, the urban population is expected to reach two-thirds, making urbanization one of the most profound trends for years to come
  • Infrastructure spending for cities will more than double to US$9 trillion per year for the next decade.

 

#3  ANGRY SOCIETIES – MULTIPOLAR WORLD

  • Since the financial crisis of 2008, inequalities have grown, not so much across countries but within them, and especially in the developed world.
  • The middle class, around the world, has grown more frustrated about the inability of the political establishment to deal with key problems such as migration and the rise of terrorism.
  • Newly elected governments have strong popular mandates.
  • The next 4-7  years are likely to bring about economic policy measures aimed at appeasing the Western middle class in the developed markets.
  • In this context, major investment opportunities include security and defense and national brands. These companies can benefit from government incentives to build factories at home or a reduction of corporate taxes if they invest domestically.

Three additional super-trends:

Silver Economy: Investing for population aging

Millennial Values

Disruptive M&A: up 196% in Europe and 34% in the USA as innovative new giants buy up traditional players to get footholds in sectors they want to conquer, and put pressure on the other incumbents e.g. the Amazon purchase of Whole Foods

 

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