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“The pandemic has slowed the global economy while at the same time questioning the existing systems and structures and paving the way for new changes that will come when we discover the limits of our way of learning, working and discovering life.”
In this way, Credit Suisse Bank starts presenting a global report headed by Michael Strobaek and Nannette Hechler-Fayd’herbe. The first of them works as Global Chief Investment Officer and the second is responsible for the position of Global Head of Economics Research at the institution.
The report is written in Spanish: Super trends. Driving change. It is actually an update of the work that was prepared and presented three years ago and was simply called Super Trends at that time to serve the bank’s clients as a framework for long-term investments in what they called “Super Trends” designated.thematic justice with high conviction“”
What has happened is that this crisis has already changed the existing systems and structures, while at the same time sowing the seeds for changes that will come when we discover the limits of our way of learning, working and living as the world does does not do in many ways It will be as before and this includes investments that focus more on trends.
However, there are “values” that will not be lost, but will deepen over the years because they are part of the way in which new generations live and live. Starting with millennials, some of these values are sustainability, responsible consumption, and social responsibility, related to issues such as health, education, and corporate governance.
According to the Swiss bank report There are five key investment trends that will become increasingly important with the pandemic.. It is important to note that the study does not focus on investing in certain stocks and even certain sectors, but rather on the trends that investors will have in the coming years, which is encouraged by the changes that the pandemic has brought about Credit Suisse has changed the planet forever and in the future the dimension and depth of these changes will be clearly visible.
1. Climate change
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Decarbonization of the economy: Investors will have reason to provide resources for companies that will most effectively contribute to the transition to a less carbon intensive global economy. The recent economic standstill due to the COVID 19 pandemic has decreased significantly in several regions. Greenhouse gas emissions, a clear sign of what could be achieved in the futureCreating a global carbon-free and more sustainable economy. The key sectors on which this investment trend is focused are: the production of ecarbon-free electricity, transport, the pioneers of change in the oil and gas industry;; Agriculture and food production.
2. Affected companies
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Integrative capitalism: In Credit Suisse’s view, population dissatisfaction is more related to national issues, particularly inequalities, than perceptions of external threats and the tendency towards protectionism. Anger has given way to concern. Credit Suisse is using a new index to track whether concerns are increasing or decreasing. COVID-19 has shown that the actual threats are global in nature and require multilateral cooperation and individual protection.
3) Silver economy – Invest in demographic change
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The aging of the population is likely to continue to promote business opportunities and return on investment for many years to come. Especially in emerging countries Aging will occur at a rate that has never been experienced in most of these countries.
4. Infrastructures – Closing the gap
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Infrastructure expenditure is about to begin an expansion phase. There are gaps everywhere, as the old economies have to meet both existing and new needs and take into account the trend towards more sustainability. At the same time, the new economies continue to urbanize rapidly.. Expecting lower and sometimes even negative interest rates over a long period of time should provide a reasonable incentive to invest.
5) Technology serving people
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Continuous innovations and challenges resulting from the corona virus crisis continue to make the technology an attractive sector for investors. Technological progress is irreversible.
These long-term investment trends, along with other changes that the unexpected pandemic caused up to a few months ago, will create surprises and unprecedented scenarios that will in fact only be part of the new normal. Secure Credit Suisse.