Invest in “The Next Big Thing”

We think the next decade will reward investing in the companies using technology to disrupt other sectors.

The Next Big Thing

We think the next decade will reward investing in the companies using technology to disrupt other sectors. We expect “The Next Big Thing” to materialize within the fintech, healthtech, or greentech spaces, or to be enabled and accelerated by the global rollout of 5G technology.

Since 1973, if a US equity sector was a top two performer over the previous 10 years, it had only an 8% chance of staying there over the next 10 years, and a 25% chance of falling into the bottom two. This pattern suggests that “The Next Big Thing” probably won’t come from the top two sectors of the last decade: technology and consumer discretionary.

We’ve worked to identify market segments containing stocks that could see earnings more than triple over the next ten years thanks to a large potential market (over USD 200bn), a disruptive catalyst to spur growth for the decade ahead, and a cyclical catalyst to kick-start things in 2021.

Our conclusion: If the last decade was about investing in the technology sector itself, we think the next decade will reward investing in the disruptors in sectors undergoing technological transformation. We expect “The Next Big Thing” to materialize within the fintech, healthtech, or greentech spaces, or to be enabled and accelerated by the global rollout of 5G technology.

Healthcare (66%), green recovery (56%), 5G (62%),were cited as the thematic investment strategies surveyed investors would most seriously consider implementing over the next six months.

Source: 3Q20 UBS Investor Sentiment survey

What does the future look like?

Our flagship report series "Future of…" provides a deep dive into some of the major issues that we think will drive society, the economy, and financial markets in the Decade of Transformation.

“Future of waste” 

From food and energy waste to the proliferation of plastic packaging, waste reduction is a key issue for consumers, companies, and the environment. Our report shows how investors can capture long-term returns by investing in waste reduction, which also aligns with some of the opportunities identified in our greentech theme.

“Future of the tech economy”

The fourth industrial revolution, where technology meets economic forces, is just beginning. Yet it has already reshaped entire industries. Meanwhile, the COVID-19 pandemic has accelerated key trends including e-commerce and digital data penetration, with ramifications for enabling technologies such as 5G and disruptive technologies like fintech.

“Future of humans”

The application of technology will transform the future of healthcare and education, particularly in the context of an aging and growing global population.

“Future of Earth”

This, coming in 2021, report will focus on the investments that need to be made to balance planetary sustainability, economic development, corporate profitability, and human needs, while addressing the impact of limited resources and the changing natural environment on our economies, livelihoods, and communities.