Investment ideas capturing the Zeitgeist of today – and tomorrow
Megatrends
Don’t be taken by surprise by trends that were foreseeable. Instead, integrate trends into your portfolio using a systematic approach.
Megatrends in the context of your portfolio
In contrast to a hype or a crash, Megatrends do not come about because the markets happen to be in a particular “mood”. That is why the Megatrends of 2020 will be the same as the Megatrends of 2021, and 2030, and so on into the future – because Megatrends are currents that have to meet three conditions.
Find out more about Megatrend Investing and the Megatrends Model that Vontobel uses.
New digital technologies are changing the world as we know it. Modern companies will experience this Megatrend in every area of their operations, driven by advances in Cloud computing, Big Data, artificial intelligence (AI) and the Internet of Things (IoT). These changes are affecting FinTech companies just as much as e-commerce and the healthcare sector. In medicine, digitization has led to faster and more accurate diagnoses. But improved medical treatments and gene therapy are resulting from digital progress as well.
The transformation of the economy towards greater sustainability is in full swing. Almost every listed corporation today is pursuing the strategy of achieving its goals sustainably. That means doing business in an environmentally friendly and socially sustainable way, while fulfilling the principles of good corporate governance. There are good reasons for this: Companies without such a strategy are often penalized on the stock exchange. For many investors, compliance with ESG standards (i.e. Environmental, Social, and Governance principles) is increasingly becoming a relevant factor in their investment decisions.
As a Megatrend, sustainable value creation will not only stimulate innovations in areas such as energy generation, mobility, and recycling, but will also help create various new investment styles for private investors.
The new multipolar world order is taking shape with new competitors – and new consumers. For one thing, the United States of America is facing increasing competition and is no longer the undisputed world power it once was. This new competition is manifesting itself not only politically, but also in economic terms.
More and more, human society is based in cities. And it is getting older. Physically and mentally, the older generation is enjoying ever better fitness these days, active in a variety of ways and enjoying a high level of material security up to a very old age.
“Megatrends are like continental plates: moving without cease, and independent of any particular event.”
Current issue: Megatrends in the Coronavirus age
We study Megatrends to create investment guidance:
“Defining investment themes to navigate through a world of transformation.”
Focusing on opportunities in the right place
Having an understanding of, and a “feel” for, a stock market is essential if you want to enrich your portfolio by means of thematic opportunities.
The Megatrends Model supports investors by allowing them to systematically integrate their personal know-how into the context of their portfolio – even in markets they may not be familiar with.
We call this: “Adapt and thrive”. Is your portfolio ready to turn changes into opportunities?
How do I manage my portfolio by means of investment themes?
Your way to our thematic investments
FAQ: Frequently asked questions about Megatrend Investing
We answer the questions our experts are most frequently asked in connection with Megatrends and Megatrend Investing.