Investment Outlook 2020 | The World In 2030
As we move from the second decade of the twenty first century to the third, it is tempting to start making predictions about what the next ten years could bring. Having resisted the temptation to call this document ‘20-20 Vision’, we further resist the idea that we can see into the future.
For example, it would surely have been possible, in 2010, to foresee the rise in technology products and services such as mobile phones and social media, but extremely difficult to have foreseen the implications of their development on markets, society and politics.
That said, markets always look forward, not back. As a result, we tend to focus our investments on long-term trends which appear difficult to upset, rather than trying to second guess shorter-term fashions and fluctuations.
Demographic trends would be an example of this – the world’s population will continue to grow, urbanise and become wealthier. However, it is also ageing as birth rates fall and as people live longer. These changes are affecting everything from economic growth rates to the types of product and services required and will continue to do so for the foreseeable future.
We tend to write about the things which interest us such as demographics, technology, and how businesses are changing and adapting. We could have written on environmental issues, alternative energy, or medical innovations as we have done in the past and will continue to do in the future. However, we feel we should highlight issues readers may be less familiar with, including the wave of disruption surging through the traditional industries of banking, telecoms and food & drinks, and the implications of these changes on both lifestyles and investments.
We try to invest in quality assets and it is increasingly clear that environmental, social and governance characteristics have become as important as balance sheet strength and profit margins. Whatever the future looks like, we as investors must be constantly vigilant about these issues and keep looking for threats to existing franchises, and opportunities to invest in new ones.
Managing Director, Adam & Company
The Dragon and The Tiger
The emergence of China as an economic superpower has been the story of this century so far. As India becomes the most populous country by 2030, could it become the story of the next decade?
About Adam investments
We offer discretionary investment management to individuals and their families, and to charities. We take a long term approach to investing and we believe this gives us an advantage in a world where markets and media are increasingly focused on short term news.View more from investments
Issued by Adam & Company Investment Management Limited (Adam), which is authorised and regulated by the Financial Conduct Authority. Adam is registered in Scotland number SC102144. Financial Services Firm Reference Number 141831. Registered Office: 6-8 George Street, Edinburgh EH2 2PF.
The value of investments, and the income from them, can go down as well as up, and you may not recover the amount of your original investment. Past performance should not be taken as a guide to future performance. Where an investment involves exposure to a foreign currency, changes in rates of exchange may cause the value of the investment, and the income from it, to go up or down.
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