There is a well-known saying in trading “the trend is your friend”. And I got four new best buddies!
A US Intelligence report outlined the following megatrends developing and changing the world by 2030.
I wasn’t so surprised and if you have my book which I wrote back in mid-2011, I mentioned some of them there.
Any guesses?
1. rising middle class from emerging economies > making new demands to government
2. end of US supremacy > and the rise and rise of China
3. dwindling resources (water, food, energy)
4. wider access to new technologies
This is important for investors, like which sectors or companies are poised to develop products and increase revenues from solving the problems or meeting the challenges of these new megatrends?
Want clues? Check the latest in fashions, which almost always reflect the economic and global sentiments (who would have thought!). Read about it in my Market Fashions updates. BUT if you want to know how to make profits when important events on the trends happen, find out from my workshops and webinars, more info here.
Here is the article if you like like to read further.
Here’s is also a video on the young, the hip and the soon to be rich?
There is a lot to consider in investing in companies – their market share, revenue growth, products, debt levels etc — also, one would need to consider risk tolerance and objectives. However, I already invest in an oil and gas company that would do well in 3 of these megatrends, Santos (STO). There are also technologies that have been well established and still have growth potential like Amazon, Google. I recommend you do your due diligence too before investing.
How about naming companies you would recommend to take advantage of the mega trends you have identified?
Thanks Market Stalker — we think alike! I am beginning to like you hehe. The Megatrends identified in this piece is from the US Intelligence Report , I did mention the graying population in my book (I wrote back in mid-2011), also reverse migration from the advanced economies. Healthcare and finance stocks is worth considering indeed. Finance stocks – depending on the economy they serve, as they are also affected by the global debt situation.
You identified several Megatrends. Add to that the graying of the population in the more advanced economies. As people live longer and older people constitute a larger percentage of the population, one should consider investing in healthcare and financial services companies.