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Investing In Future

Investing Into Tomorrow’s World

Thinking ahead to the year 2030 might evoke feelings of a science fiction movie, however Capital Group have released a report called ‘The World in 2030: 10 predictions for long-term investors’ that explains taking a future thinking approach to investing can uncover hidden potentials not yet considered by many. Progress and innovation is inevitable and cannot happen without change. In our current context surrounding pivotal moments like COVID-19, it can be hard to even look beyond the next few weeks. Yet moments like this in history prove to be highly influential to the revolutionary progress of tomorrow. Developments in technology and shifting patterns and behaviours will continue to move with the times and long term investors would be wise to keep their finger on the pulse. Below are the ten predictions discovered in the report.

A Quantum Leap in Revolutionary Health Care

Health care

If we consider the devices already available to us for personal use, in the form of a smart watch or phone that syncs with our fitness technology, reads our vital signs and monitors our heart rate and breathing; thinking ahead of even more possibilities does not sound wildly out of reach. It is exciting to imagine what could be available in the health care sector within the next decade. Rich Wolf from Capital Group foresees that technologies available at that time could help reduce overall costs for healthcare companies and improve patients outcomes for health. New technologies in health may focus on preventative measures before an illness occurs, or at the very least an early detection for a quick treatment. Wolf says that exciting new developments such as a liquid biopsy can be used to find cancer at its earliest stage for fast intervention.

COVID-19 has proven to be a significant factor in not only highlighting the importance of vaccines and health technologies but has encouraged many to look ahead to the future and wonder what other possibilities are out there in revolutionary health solutions.

A Cure for Cancer – Too Good To Be True?

With all of these incredible leaps and bounds in health technology, Cheryl Frank from Capital Group believes some cancers may find cures with cell therapy any time between now and 2030.
Better testing that allows for faster detection and early treatment could lead to a dramatic reduction in cancer deaths. We are seeing a new frontier of research and development, with companies investing heavily to think of new innovations to tackle and cure diseases. Genetic testing has contributed to state-of-the-art medications that could make billions for developers and potentially cure and treat formerly untreatable illnesses and diseases.

Cash – A Thing Of The Past

Cashless

Society is becoming increasingly comfortable with digital payments, with cash set to become an antiquity in a decade’s time. Other supporting technologies such as smart phones and devices have helped to encourage digital banking and transacting, to the point where cash is looking to become a hassle at some point and somewhat unnecessary.

COVID-19 has been seen as a bit of a tipping point for turning away from cash and globalised businesses should reap the benefits of this. Smaller companies may benefit too, as digital transactions encourage a more global market and therefore a wider net to cast for business.

Monitoring Everything, Everywhere

Steve Watson From Capital Group envisages that semiconductors are set to monitor several facets of our everyday lives. We see them a lot already through smart devices, cars, appliances and home entertainment. But with wearable monitors becoming an increasingly familiar trend, it seems they could only continue to become more apparent and more sophisticated too, tracking our movements on ways and levels never before possible. There is a high demand for higher technology in our cars as people become more reliant on them for everyday use. Cars are expected to be at the forefront of safety and efficiency and semiconductors will play a part in satisfying the demand with sophisticated chips to monitor and increase performance of cars throughout the industry.

Wearing Your Technology With Pride

Mark Casey from Capital Group discusses the next decade of wearable technology. Real time language translation may become the new norm, perhaps with earbuds that translate as someone speaks and glasses that translate words on a page. Face recognition may even feature on wearable technology. Imagine being able to know someone’s name and essential info as they approach you. It may remove the mystery but could prove to be incredibly useful in certain situations. Apple and Google are already market leaders in wearable technology and there really seems to be no limit to wear they will go next in their endeavours.

Streaming Content To Trump TV

Streaming content has proven to be effective and efficient and is increasingly overtaking traditional network television. It is worth looking for the companies that will own the market of streaming content. The more success a streaming platform experiences, the easier it is for them to expand and reinvest in more and better content to continue to grow. Watch out for upcoming streaming platforms that begin to dominate. Likewise, the video game business will be one to watch, with possibilities involving augmented reality and event-like experiences that are affordable and effective.

Self-Driving Cars Speeding Into Reality

One thing the market is yet to realise may be that autonomous electric vehicles may soon operate throughout major cities, to an extent where owning your own may no longer be necessary. As fleets of self-driving cars become available publicly, we should begin to see that this is big business and one worth considering when investing for the future.
Hybrid electric and Hydrogen engines may even be introduced into aircrafts commercially, positively influencing the effect of global emissions. Coupling this with less vehicles on the road with less fuel emissions seems like it could be a positive thing to invest in.

Green Machines Could Rule The Road

With electric vehicles set to take over the road over the next decade, conservatively expected to rise in sales by 28%, there is growth on the road that should not be ignored. Some car companies are even promising to go all electric by the year 2030. Software defined electric vehicles may also be the future, with subscription packages something to watch out for, that offer a service to update your cars safety features and entertainment, making your car improve and not decline over time. Companies that are beginning to implement technology like this may be worth looking into for investment.

Changing Energies

Automated technology and artificial intelligence are paving the way for renewable energy, that is both cost effective and efficient, should continue to grow in use, most clearly seen at the moment in European utilities. Renewable energy is losing its old reputation as being low on profit and practicality and high on price. Times are changing and so are wrongly held attitudes on renewable energy.

Innovation Improving The World

Anne Marie Peterson, a growth investor for Capital Group, looks out for businesses that have technologies or services will change the world for the better. She explains that change means opportunity for long term investors and we are currently seeing huge innovation come out of a significant time in history.

Now is not the time to feel anxious about the future. Amongst the chaos of a pandemic, it is important as a long-term investor to see potential in important stages like the one we are living through. Through change and challenge comes innovation and opportunity. That opportunity is available to anyone willing to look out for it and see beyond into future advancements and investment potential. Speaking to a financial planner that specialises in investment strategy can help you to feel confident in making the most of investing in future growth.

For expert financial advice from an award winning team get in contact with Elliot Watson Financial Planning 02 4038 1623.

 

The information within, including tax, does not consider your personal circumstances and is general advice only. It has been prepared without taking into account any of your individual objectives, financial solutions or needs. Before acting on this information you should consider its appropriateness, having regard to your own objectives, financial situation and needs. You should read the relevant Product Disclosure Statements and seek personal advice from a qualified financial adviser. The views expressed in this publication are solely those of the author; they are not reflective or indicative of licensee’s position and are not to be attributed to the licensee. They cannot be reproduced in any form without the express written consent of the author. Elliot Watson Financial Planning Pty Ltd is a Corporate Authorised Representative of RI Advice Group Pty Ltd, ABN 23 001 774 125 AFSL 238429.

Jose Hernandez

Jose Hernandez*

Jose Hernandez is a financial adviser. He believes that financial planning is the strong foundation on which Australians can build their future. Get in contact with Jose to discuss your financial goals 02 40381623.

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