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7 investment themes for 2029 (for which you can get a head start already)

Published on:

20/02/2019

To achieve a potentially higher return later, you should get a head start for the future today. You can do this by investing part of your portfolio in themes. 7 megatrends for the future ...

1. Smart cities

According to the United Nations, 55% of the world's population currently lives in cities. By 2050, this figure will be 70%. Smarter cities are desperately needed to keep large-scale urbanisation viable. This can be achieved by optimising the electricity grid, traffic flows and waste management, and by further digitalising public administration and by fighting crime more intelligently, for example. The huge investments needed to do this may offer interesting opportunities for investors.

2. Artificial Intelligence

Artificial intelligence is to the latest industrial revolution what steam power was to the first industrial revolution, what electricity was to the second industrial revolution and what the computer was to the third industrial revolution. Artificial intelligence is increasingly transforming entire industries. Examples include self-driving vehicles in the automotive industry, robo consultants in the financial world, data-driven diagnostics in the medical sector, inventory management in warehouses, real-time translations in the communications sector and so on. This evolution leads to more investment in data collection, data processing and data analysis, and in practical applications, of course.

3. Safety

The issue of safety is at the heart of everything we do from early in the morning until late at night. When you switch on the light, you use power from a power station that is optimally monitored. When you travel to work by train, the railway lines you use have safety systems to prevent accidents. When you buy food at the supermarket, this was subjected to all kinds of tests. In the coming years, this theme will only increase in importance. Globalisation brings with it more complex legislation in the field of food safety, transport and so on. New technologies such as the Internet of Things are associated with opportunities, but also with new risks. The economic growth in emerging markets is significantly pushing up the demand for safety.

4. Drinking water

Turn on the tap and drinking water comes out. We expect nothing less. However, this is all too often the exception rather than the rule in the rest of the world. More than 99% of all water on earth is not suitable for consumption because it is polluted or salty. Flooding, heavy rainfall and extreme drought are endangering local water supplies more and more. This offers great opportunities to companies that can help solve the impending water scarcity.

5. Longer and healthier lives

Babies born in 1950 had an average life expectancy of 48 years. Babies born today have an average life expectancy of 72 years. Life expectancy is even higher in Western countries. For example, girls born in the Netherlands in 2019 have a life expectancy of 92.5 years. At the same time, we are increasingly aware of all the negative and positive effects on our health. It therefore comes as no surprise that we spend a larger part of our personal income on our health. We may buy organic food, for example. Governments and companies are also increasing their investments in initiatives that are combating age-related diseases and pollution. This offers opportunities for thematic investments in areas such as food, biotechnology and the environment.

6. Renewable energy

Thanks to an increasing focus on climate change, the demand for cleaner, renewable energy is also on the rise. At the same time, more and more governments are encouraging companies and consumers to speed up this change. Investments in renewable energy (wind, solar and hydropower) and battery storage are increasing every year. This offers opportunities to invest in companies that develop alternative energy sources, make energy sources more efficient or focus on environmental protection and nature conservation (waste management, water purification and so on

7. Gaming

What may seem an innocent pastime to you may be a competitive sport of the highest level to someone else. It is estimated that more than 2 billion people regularly play games on their smartphones or computers. Fortnite, one of the world's most popular games, has captivated more than 200 million people. Games' growing popularity as a spectator sport is also benefiting the sector in other ways. It gives the industry the opportunity to tap into new revenue streams, such as the placement of advertisements inside the game or the sale of media rights. Games manufacturers have become an industry to watch, and not just for game fanatics.



This article does not contain any investment advice or recommendation, nor a financial analysis. Nothing in this article may be construed as information with a contractual value of any sort whatsoever. This article is intended for information only and does not constitute in any way a commercialization of financial products. Keytrade Bank cannot be held liable for any decision made based on the information contained in this article, nor for its use by third parties. Every investment entails risks such as a possible loss of capital. Before investing in financial instruments, please inform yourself properly and read carefully the document "Overview of the principal characteristics and risks of financial instruments" that you can find in the Document centre.

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