What defines happiness?
Several factors have consistently contributed to human happiness throughout the ages, but on the individual level, it remains a lifelong pursuit. Looking ahead, we expect demographic developments and rapid technological change to influence the path to happiness in the decade ahead.
The millennials and Generation Z will move into their peak earnings years and likely benefit from wealth transfer. These cohorts are broadly more conscious of their social and environmental impact. They often value experiences more than material ownership. Companies that produce goods and services that cater to these generations’ social and environmental values are likely to benefit. Furthermore, companies that provide new consumer experiences through technologies like augmented and virtual reality can offer attractive investment opportunities.
Technological progress has raised living standards. But at the same time, more hours spent in front of screens carries risks to well-being. Mental and physical health applications and platforms could benefit both consumers and investors.
Explore below what the demographic change and technological progress mean for investors seeking short- and long-term opportunities. We focus here on the opportunities resulting from more socially conscious and digitally savvy consumers—sustainable brands and digital entertainment like augmented and virtual reality (AR and VR) and esports.
E-commerce and fintech
We expect the trends toward e-commerce and fintech, driven by digital technologies and the demand for convenience, to continue.
The shift to more efficient payment mechanisms is underway, and we believe the COVID-19 crisis will accelerate structural trends that were already in place.
Speedier adoption of these trends should benefit payment service providers and their volumes.
Consider public and private market opportunities resulting from more socially conscious and digitally savvy consumers—sustainable brands and digital entertainment such as augmented reality (AR), esports, and virtual reality (VR).
We recommend investing in a diversified portfolio of companies benefiting from e-commerce trends, including large internet retail platforms, omnichannel retailers, logistics companies, and select real estate opportunities.
As consumers increasingly shop online and more types of payments shift to digital channels, we also see an opportunity for payment service providers as well. These trends support our broader fintech theme, which encompasses a wide range of markets undergoing technological transformation, including payments, insurance, wealth management, and banking.