Global markets remain volatile but here are the emerging investing themes for next decade
It is important for investors to analyse and notice long-term trends instead of specific companies or sectors
The investment market has entered a bearish phase in 2022. The market is taking a big hit at the moment after Covid now geopolitical wars are also affecting the trends. It is important for investors to analyse and notice long-term trends instead of specific companies or sectors. If you take long-term investments into consideration, you can make good money in the next 10 years.
The year 2022 seems like a transition for the whole industry. Here are some trends that may affect the next decade that investors must look out for:
COVID has made us realise that the impractical seeming idea of meeting a doctor virtually does work if done in the correct way. The healthcare industry has been in the spotlight for the last two years. We are continuously developing and innovating new ways to treat dangerous diseases. The world is now focusing on how we can make healthcare more efficient and accurate. Various technological innovations which can make staying healthy and treat the ailments of the body are coming up. Equipment and treatment, everything is getting advanced at a faster pace, and investing here can turn out to be a good decision in the coming years. At-home diagnosis and treatment of diseases, delivery of medicines right at your doorstep, and wearable and implantable technologies, are a few examples of the fast-growing industry.
Streaming content on the internet has become a habit for people now. Months of staying inside their homes have made them used to consuming a good amount of content and demanding more. Over 1/3rd of the total content consumption is done through OTT platforms today. It is going to grow to 80 per cent of the total consumption in the coming future. The market for media and telecom services is enormous today, and it’s going to grow exponentially over the next few years. It is a good time for platforms like Prime Video and Netflix to grow and put their efforts into becoming the major players in this industry.
Machines can take instructions and perform them more accurately than humans. Then why not have them drive the cars as well? Automatic self-driving cars have entered the market and they are incredibly precise in taking turns, staying in the centre of the lane, and much more. Google has innovated its own self-driving cars and Amazon has acquired a company called Zoox which makes autonomous vehicles. We can also give the cars manual instructions, so the situation is under control and is not going to turn out like Black Mirror for a very long time. The big players in the industry are already making their move into this market and you can also make good money in the coming years, especially if you are a tech enthusiast.
CEO of Microsoft Satya Nadella said that they had seen a growth of two years in just two months in the demand for cloud services all over the world. All the new startups which are coming up are choosing cloud first mode to operate. A large number of small companies are also switching to cloud-based models. Microsoft’s Azure and Amazon’s AWS are the biggest players in this industry right now. Globally all the companies together spend around $4 trillion on IT services. Now that more and more companies are taking up Cloud services to manage their data and websites, it seems like a good time to invest in this industry. Vendors who supply CPUs, batteries, and cooling equipment may face a big loss in the coming years with everything moving to the clouds.
Environmental Social and Governance is a criterion to screen companies on the basis of these three things. Big investors and investment institutions are more concerned about the world and humanity now and they are screening companies with these criteria. Companies that are more focused on making sustainable products and promoting diversity are stealing the limelight in today’s world. Consumers prefer buying organic goods and promote the attempts to make the environment less toxic. Other than environmental concerns, investment firms are also looking at companies with better corporate governance, which means keeping transparency with the customers.
Over the next 10 years, these themes are going to flourish and it is a good time to invest in them in 2022.
The author is a Financial Engineer at Hedonova, an AIF firm. Views are personal.
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