The portfolio managers at Capital Group have spent a lot of time thinking about how life may change over the next decade; here are their thoughts.
Covid could be this generation’s Pearl Harbor (Martin Romo) COVID may be looked back on as our generation’s “Pearl Harbor moment”. A period in time when extreme adversity changed human behavior and sparked innovation. When Pearl Harbor happened in 1941, 75% of the U.S. artillery was horse drawn, yet by 1945, at the end of the war, we had entered the atomic age. This transformation ignited innovation and growth in the U.S. economy that lasted for decades. In 2030 we may be living, studying, working, and playing in a radically new world. Our lives could be better, richer, healthier, cheaper, and profoundly more digital, virtual and data centric. Many of the technologies already exist, but it will take innovative companies to think bigger and use them in ways that solve societal problems.
Cash is an endangered species (Jody Jonsson) “A decade from now I think digital payments will be the norm, and people will give you odd looks if you try to pay with cash.” The pandemic has accelerated the use of digital payments; even in the areas of our lives where we had not already incorporated it. Once this crisis is over, people will be much more comfortable making electronic payments, and they will not feel the need to use cash as much as they did before.
A cure for cancer may be around the corner (Cheryl Frank) A cure for cancer may be closer than we think. Frank believes cancers will be functionally cured with cell therapy between now and 2030. New, reliable tests should enable very early detection of cancer formation and location. Through early diagnosis and treatment, cancer could be eliminated as one of the leadings causes of death.
Health care innovation reaches warp speed (Rich Wolf) By 2030 many of us will have hand held devices at home to analyze blood, do cardiology monitoring and check on our breathing while we sleep. Many technology and medical technology companies are working on developing such home diagnostics tools. These devices can collect all kinds of health-related data, information that will help us monitor our own health, but then can be sent to our doctor for future consultation.
Renewable energy powers the world (Noriko Chen) Renewable energy has historically been seen as expensive, impractical and unprofitable; but things are quickly changing. We are in the early stages of transitioning to electrification and green energy. Automation and artificial intelligence are setting the stage for a golden age in renewables – pushing costs down while boosting productivity and efficiency.
Electric and autonomous vehicles hit the fast lane (Chris Buchbinder) By 2030 Buchbinder believes we will have widely deployed fleets of autonomous electric vehicles operating in most cities around the world. Personal vehicles will no longer be necessary, ownership will be a luxury, people will still have them, but only for fun. Buchbinder also believes we are likely to see hybrid electric engines and hydrogen engines introduced into commercial aircrafts.
What is not changing? Successful Investing (Andrew Suzman) Despite all the changes going on in the world, Suzman believes the nature of his job as a portfolio manager will be exactly the same. Just as in past decades, in 2030 he expects to find great companies that do interesting things, he will buy them at reasonable prices and hold onto them for as long as they generate returns for investors. Not that he expects perfection, but he is optimistic that he and his team will choose companies that will add value to their portfolios and build wealth for their investors.
Happy Spring!
Tracey
Source: Original article posted on AdvisorAnalyst.com 03-11-21, The world in 2030: investing for the next decade, posted by Judy Jonsson and Martin Romo, Equity Portfolio Man