The emergence of new trends and advancements such as the advent of AI, electric vehicles and other ‘big picture’ global innovations are set to shape our future, presenting opportunities to investors interested in capturing these themes in their portfolios.
The United Nations Economist Network has identified five megatrends impacting social, economic and environmental outcomes, these are – climate change, demographic shifts, urbanisation, digital and disruptive technologies and inequality. The World Economic Forum have noted that ‘megatrends are defining the future… short-term investors can be opportunistic, but long-term investors have to be more strategic, particularly in the face of these megatrends.’
An ever-changing world creates opportunities and challenges
Developing a strategy and adding thematic investments to a portfolio can enable investors to align their personal objectives and interests, as well as identifying and hopefully capitalising on changes believed to be disrupting established markets and industries. By combining thematic elements with a well-diversified and well-managed core portfolio, investors could achieve balance between opportunity, risk and performance. Advice to identify these potential opportunities is essential.
The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.