Investment insights: using long-term trends to build a sustainable portfolio

Published by Matt Tickle on

Megatrends are long-term economic trends that we expect to drive the trajectory of the global economy, shaping businesses and society, today and in the future. 

We have split this note into two parts:

  1. Firstly, we set out five key trends we expect to be particularly influential in the coming years.
  2. Secondly, and perhaps more importantly, we touch on how investors might use this. 

There are two reasons why investors should care about megatrends:

  1. True long-term investors are able to take into account both short-term and long-term information. By contrast, much of the market focuses on short-term information – such as quarterly earnings and the latest central bank decision – and is less interested in correctly pricing long-term information. This creates mispricing opportunities that investors with a long enough time horizon can capitalise on.
     
  2. Given their broad impact, megatrends will have a major influence on your portfolio whether you actively choose to participate or not.

In this note, we will focus on a selection of these trends we believe will have a significant impact on the global economy over the next 30 years.
 

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