Tech and ESG, responsible investing, will “inevitably be the top two megatrends” of the 2020s, suggests the CEO of one of the world’s largest independent financial advisory organisations.
“The Covid-19 crisis has accelerated innovation and disruption and has heightened expectations. The future has happened faster,” Green comments.
Tech and ESG: two investment megatrends
He believes “that there are two underlying forces that will inevitably be the major investment megatrends of this decade, likely to be worth tens of trillions of dollars.
Technology is the first. “The digital revolution is taking place right now in a monumental way, with our daily lives become ever more digitalised at a staggering speed.
“The rapid advancement of digital technologies is already fundamentally changing business models, institutions and society as a whole — and this trend is likely to pick up pace further as tech evolves.
“The digital revolution means the potential for new and emerging businesses and industries is greater than ever before – and both retail and institutional investors will, naturally, be drawn to the massive growth and opportunities.
“Indeed, we can see the future economy already in global stock markets which are being driven up primarily by tech-based firms,” Green continues.
How can organisations meet their customers’ sustainability demands?
Against this backdrop of advancing technologies impacting all areas of our lives, including personal finance, last week deVere Group announced it is to develop a major digital finance operation from its headquarters in Dubai, UAE.
The deVere CEO says the second megatrend will be environmental, social and governance (ESG) investments.
He says: “These unusual times have fostered a growing collective awareness and sense of mutual responsibility.
“It’s been brought into sharp focus that today’s Covid-19 crisis could be overshadowed by tomorrow’s climate crisis.
“It has demonstrated the importance of having sustainable and diverse supply chains. It has also underscored that companies with strong corporate governance and good business practice are best-positioned for the future.
“This has been evidenced by those investments with robust ESG credentials continuing to outperform throughout the recent bouts of stock market volatility.
“Again, the major growth and opportunities that that pattern of change creates cannot be, and will not be, ignored by retail and institutional investors.”
‘A trend is a friend’
When investing it is often said that a ‘trend is a friend’. “A megatrend is likely, therefore, to be your best friend,” advises Green.
“Megatrends — like the advancing technology and the search for purposeful profits — affect how we live and work every day, therefore they impact global markets and investor outcomes.”