Investment megatrends to watch

Innovation fuels growth across all sectors and nations. For investors, it is therefore crucial to stay up to date with recent developments to identify the investment megatrends of the years to come.

According to Capital Group, there are particularly four megatrends to watch.

Artificial intelligence (AI): “As interesting as I find large language models like ChatGPT, I suspect AI-powered robots could have an even bigger economic impact over the next decade — with their applications used everywhere from homes to factories to hospitals,” said Mark Casey, equity portfolio manager at Capital Group.

Healthcare innovation: Cell therapy is only one rapidly evolving field. It recently gained approval for use against certain blood cancers and is also being used to develop therapies in other fields, e.g., diabetes.

Shifting trade and supply chains: “China plus One” has benefitted emerging markets like India or Mexico and the trend is expected to continue.

Innovation across agriculture: Capital Group names precision agriculture as one investment megatrend. It is the use of high-tech tools to grow crops more efficiently. “Farmers armed with cutting-edge technology using machine learning, geolocation and sensors are able to make smarter decisions in the field,” said equity investment analyst Gigi Pardasani.

Read the full assessment here.