Mega Trends are too vague to invest in directly

Mega Trends are too vague to invest in directly

Learn why this is a false myth

Mega Trends are too vague to invest in directly

It is agreed upon that there exists four Mega Trends:

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

Most people might think that these Mega Trends are too broad and vague to invest in directly. Indeed, they have a broad definition and most likely a time horizon ranging from 15 to 100 years. However, there’s more than one thing that one can do to modulate an investment on a Mega Trend.

First of all, is necessary to break it down into investable themes, with a time horizon ranging from 5 to 20 years. For example, the theme of artificial intelligence, which has the potential to disrupt every sector and change the way we live and work, is a subset of the Mega Trend “Technological Innovation”, the theme “Water” belongs to the Mega Trend “Resource Scarcity” and so on.

The most interesting of mega trends

“Technological progress” is perhaps the most significant of all the Mega Trends. In fact, it acts both as a trend in itself and as a response to some of the emerging challenges and opportunities posed by other trends. The years ahead will be the years of digitization. Technology will become part of all sectors – manufacturing, private, consumer goods. Discussions about the use of artificial intelligence, data, and robotics are no longer exclusive to Silicon Valley, but instead are paving the way for change in all kinds of industries, from healthcare to infrastructure to retail.

To know more on how to establish a thematic approach to investing, read One Million for my Daughter by Italian trader Pietro Di Lorenzo