Don't get me wrong. I love Bitcoin as much as the next person but when the price of Bitcoin slid as much as 17% due to technical glitches arising from El Salvador's utilization of Bitcoin as legal tender, it drove home the point that the crypto world is unpredictable and untamable. It runs on a trajectory that is not subjected to our typical fundamental and technical analyses, so I would be wise to explore other emerging megatrends and devote part of my portfolio to them. Let's not put all the eggs in one basket!
So what are some of the emerging megatrends nowadays? Thankfully, roboadvisors are growing from strength to strength in my country, so they have not only done their homework, but also compiled mouthwatering portfolios for us. I consolidated these trends after examining the hottest thematic portfolios launched by two prominent roboadvisors in my country, Syfe and Endowus.
1) ESG (Environmental, Social and Governance) Climate change is real and starting to wreck havoc in many cities around the world. Therefore, there is an increasing emphasis on being environmentally friendly, so retail investors who are determined to do good with their money will endeavor to invest in socially responsible companies who lead the pack in employing sustainable practices and innovations. This is especially so when people of the Gen Z generation are vocal about advocating for social and environmental changes, so enterprises will be quite likely to adopt eco-friendly technologies to appeal to these youth.
2) Disruptive Technology Of course, as cryptocurrency enthusiasts, blockchain technology comes readily to mind, but there are other revolutionary technological trends that will shape our future. Take for instance cybersecurity as people grow to be more reliant on online platforms to engage in their everyday activities like online shopping and playing esports and banking. Another area of immense growth potential will be robotics so that robots could be deployed to serve the needs of ageing populations as well as supplement the gap caused by declining labor forces.
3) Growth of China No doubt, with China's recent clampdown on crypto mining and for-profit tuition centers, people are apprehensive about whether such clampdowns will similarly occur to other sectors like property, thus generating a lot of turbulence in the stock market. However, there is no question that China cannot be ignored as it is currently one of the world's super economic powers, second only to the United States. It is a key growth engine, so investing in China A-shares could be an useful way to build your wealth!
4) Healthcare Sector Life expectancy of humans has been steadily increasing over the years. What's more, nowadays, the possibility of us living up to a hundred (or even beyond one hundred!) years old is no longer a remote possibility but rather, a likely occurrence. Therefore, enterprising pharmaceutical companies will ride on this trend and innovate products that will safeguard people's quality of life in their sunset years. Groundbreaking medical devices will be invented too. And of course, the breakout of COVID-19 taught mankind an important lesson. After all, transmission of life-threatening viruses might happen again in future, so medical research and the corresponding development of new vaccines become increasingly vital.
Does any of these trends catch your fancy? Let me know in the comments below.
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