investment viewpoints

    Investment megatrends to watch in 2022

    Investment megatrends to watch in 2022
    Henk Grootveld - Head of Trends Investing

    Henk Grootveld

    Head of Trends Investing

    Normally, investment outlooks are all about forecasting economic growth, interest rates, election outcomes and, sadly amid the pandemic, virus mutations and vaccine efficacy. For trends investors, like us, such forecasts are somewhat out of sync with our long-term investment trajectory. We tend to think in terms of decades rather than quarters or years. However, we do see value in providing an annual investment outlook as it creates an opportunity to discuss the progress of forces changing our world.

     

    Need to know
    •    More consumers – well, their avatars – will purchase digital goods offered by brands in metaverse experiences, as online pharmacies gain market share in Germany and China’s central bank issues more eCNY, or digital yuan
    •    The demographic dividend will continue to become a deficit as working-age populations shrink, most notably in China, South Korea and in Western nations. Are pension systems prepared? We know elderly care services must be strengthened.
    •    Focused on consumer brands, fintech, the ‘silver economy’ of retiring baby boomers and healthtech, the LOIM Global Trends range is positioned for developments in these megatrends and mega-challenges – in 2022, and far beyond.

     

    Trends in the near future

    Trends investing focuses on megatrends and mega-challenges. For us, a megatrend is linked to significant societal changes that companies should embrace, adapt to and try to benefit from. A mega-challenge is something companies need to fight and develop solutions for.  At Lombard Odier, we describe the mega-challenges by our CLIC™ framework, that captures the transition to a circular, lean, inclusive and clean economy and eight challenges within it, from zero emissions to zero waste. However, in this outlook we focus on two different megatrends – technology and demographics – and consider what opportunities they might offer investors in 2022.

    important information.

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