Global markets are seeing a turbulent year due to the Covid-19 pandemic, clubbed with Russia’s invasion of Ukraine and rising inflation. While this short-term market volatility might spook some investors, it is also worthwhile to look at longer-term trends. Therefore, Credit Suisse is looking into “supertrends” – long-term investment themes that cover six key societal developments around the world.  

The bank has just released its 2022 list which points out six supertrends — anxious societies, infrastructure, technology, silver economy, millennials’ values and climate change. They are further diversified across 23 subthemes which help investors adopt a dynamic approach while building their portfolio.  

The Credit Suisse supertrends 2022 are mapped to the UN’s Sustainable Development Goals (SDGs), providing a societal framework for economic development in tandem with investment opportunities. The financial services firm found that the Climate Change supertrend had seen the most progress when it comes to contribution to UN SDGs  

Under its first supertrend of Anxious Societies, Credit Suisse says investors must look at companies providing solutions to lower the costs of basic needs such as food, housing, and healthcare, while high inflation ravages affordability. The trend targets impact areas like poverty, health and well-being, education, gender equality, work and economic growth, innovation and infrastructure, reduced inequalities, and lastly sustainable communities.  

The infrastructure supertrend is likely to have a great year in 2022 as government spending kicks off in the US and Europe says the bank. Most of these programs are focused on transportation, energy transition and communication infrastructure and there is an investment gap which needs to be filled urgently for long-term gains. 

The technology supertrend may look like it has taken a beating in the past few months due to rising interest rates, and Credit Suisse says high growth rates may not be sustainable. However, the company believes new catalysts, such as the Metaverse, will create new business opportunities.  

Under Silver Economy, Credit Suisse believes there is a need for innovative solutions in the healthcare, insurance, consumer and property markets as the world’s senior population increases — a supertrend which will remain in place going forward for years.  

Millennials’ values look at the digitalization of processes for the young generation who are increasingly concerned about the environment and want to play an active role in driving change.  

Lastly, the Climate Change supertrend explores consumer behaviour, company production lines as well as policy changes that support sustainable development. The most recent development is the increase in energy prices, which will push the world to wean off fossil fuels for electricity production and distribution.

“We view current market volatility as an opportunity for investors with a multi-year investment horizon to diversify their asset allocation,” said Daniel Rupli, Head of Single Security Research at Credit Suisse.  

The full study is available for download here.