the value of certain industries It changes along with consumer trends and people’s lifestyles, where currently two demographic phenomena stand out: greater life expectancy of the world population and the growing participation of millennials in the total.
The growth in the longevity of societies makes us understand that it is essential to save today with a view to the stage of life in which we stop being productive. And this invites us to invest with a long-term view tending to increase our capital, being relevant to identify the critical industries of the future.
Equity positioning of companies in those industries takes center stage in any investment portfolio to serve that purpose. Indirectly it represents incorporating innovation in the portfolios, recognizing future behaviors and demographic changes.
For example, by the year 2030 the consumption of the world middle class will be explained by 59% by China and India. How much exposure does the reader’s portfolio have in instruments from those countries?
In 2006 oil companies such as Exxon Mobil and Shell as well as banks such as Citigroup and Bank of America were among the 10 with the highest market capitalization. Today, 17 years later, the ranking has no banks, only one oil company (Aramco, the Saudi Arabian state company that opened capital a few years ago) and is dominated by technology companies such as Alphabet, Apple and Microsoft and companies such as Tesla, which manufactures electric cars.
perform a asset allocation considering industries such as the Internet of things/5G, health technology, cybersecurity, robotics, energy transition, fintech, Big Data, artificial intelligence, care and well-being of people, it will pay the investor tomorrow with greater consumption. The future has already arrived, but the decisions we make today about our savings will define the individual of each one.
Managing Director of Liebre Capital
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