According to deVere Group’s chief executive and founder, Nigel Green, technology, and responsible investing will “inevitably be the top two megatrends” of the next decade. The bold, unambiguous message from one of the world’s largest independent financial advisory organizations, is clearly looking ahead to the post-pandemic era and gradual economic recovery.
Since the Covid-19 crisis has accelerated innovation and disruption and has heightened expectations, the future has happened faster, Mr. Green states, believing that there are two major investment megatrends of this decade, likely to be worth tens of trillions of dollars:
Technology: the rapid advancement of digital technologies is already fundamentally changing business models, institutions, and society as a whole - and this trend is likely to pick up pace further as tech evolves. The digital revolution means the potential for new and emerging businesses and industries is greater than ever before – and both retail and institutional investors will, naturally, be drawn to the massive growth and opportunities. “Indeed, we can see the future economy already in global stock markets which are being driven up primarily by tech-based firms”, Green said.
Environmental, social and governance (ESG): responsible investments will be the second megatrend the deVere Group identified, claiming that “these unusual times have fostered a growing collective awareness and sense of mutual responsibility” besides making us aware of the fact that today’s Covid-19 crisis could be overshadowed by tomorrow’s climate crisis. The COVID-19 pandemic shows the importance of having sustainable and diverse supply chains and underscored that companies with strong corporate governance and good business practice are best-positioned for the future.
It’s often said, a ‘trend is a friend when investing. Therefore, a megatrend is likely to be your best friend.
“Megatrends, like the advancing technology and the search for purposeful profits, affect how we live and work every day, therefore, they impact global markets and investor outcomes”, Mr Green concludes.