The world is undergoing structural economic changes at a rapid pace.
Technological breakthroughs and scientific discoveries that used to take decades are happening in years, and shifting demographics and climate change are causing upheaval around the globe. With the onset of Industry 4.0 and constantly shifting capabilities and consumer priorities, the global investment landscape is transforming as well.
How do you prepare for this transformation? This graphic from MSCI highlights
thematic investing, its characteristics and benefits, and how themes are constructed and utilized.
Thematic Investing: Characteristics and Benefits
The key to thematic investing is a thorough understanding of
megatrends.
Megatrends are long-term structural trends that can have a transformative effect on global economies, in areas of high disruption and innovation and with significant growth potential. These can include transformative technologies like driverless vehicles and 5G-enabled robotics, or societal changes like an aging society.