Investing in Mega Trends: a new approach to financial markets

Investing in Mega Trends: a new approach to financial markets

A special mind-set is required

Investing in Mega Trends: a new approach to financial markets

A Mega Trend is a driving force in the development of human activity. It brings with it profound long-term changes and focusing on it may prove to be not only valuable in times of financial and economic crisis, but also effective from an investment perspective.

This is, of course, if one has a long-term approach to investing. As a matter of fact, the stock performance of companies that will benefit from such trends will still be affected in the short term by market movements and macroeconomic factors, the long-term expectation is that such stock prices will rise significantly over time. A Mega Trend is a general direction of development, consisting of numerous phenomena and characterized by a broad process of change

In most cases a Mega Trend is already quite familiar to us: many of the changes that are expected in the future are actually already happening today and will most likely continue to happen tomorrow. And that’s exactly the point: a Mega Trend provides useful insight into broad future changes, with the ability to also narrow the horizon and focus on more detailed trends.

How to identify Mega Trends?

Experts agree that there are four Mega Trends:

1. demographics and social change;
2. climate change and resource scarcity;
3. technological innovation;
4. urbanization.

If you’re thinking that these Mega Trends are too broad and vague to invest in directly, then you shouldn’t miss the book One Million for my Daughter by Italian trader Pietro Di Lorenzo, he will show you otherwise.