New decade, new investment plan

Perspectives on investing in the 2020s

17 Jan 2020

As we enter a new decade, it’s a great time to look forward and determine how we should refresh our investment plans. In a recent Top of the Morning podcast from UBS, Head of Thematic Investing Laura Kane and Thematic Investment Associate Michelle Laliberte shared perspectives from the UBS Chief Investment Office for the year ahead. Here’s a preview of what they had to say.

Key takeaways

  • UBS recommends businesses focus on “digital transformation” for long-term investments.
  • Sixty-nine percent of investors feel optimistic about their investment returns in the coming decade, but uncertainties remain.
  • Learn how to apply long-term investment themes to find short-term prosperity.

A decade of transformation

“We expect the next 10 years to hold a lot of promise in terms of technological advances that can potentially improve the quality of life for millions of people around the world,” said Kane. “But at the same time, we expect that the next decade will bring new sources of uncertainty and risk as we grapple with trends like diminishing natural resources, an aging population and deglobalization trends.”

Regarding long-term investment opportunities, UBS recommends businesses focus on “digital transformation”—the harnessing of digital data and turning that into applications that can help to improve our society and quality of life.

Sources of investor uncertainty

“Overall, it does seem like investors are feeling optimistic about the future,” Laliberte explained. In fact, a recent UBS survey revealed that 69% of investors feel optimistic about their investment returns in the coming decade. “The rapid pace of technological change,” however, “does create a whole new basket of uncertainties to consider.”

Some worry about the potential adverse effects of technology. Others worry about the impact of automation on jobs, safety and privacy. Such uncertainties can cause both anxiety and confusion for investors.

“There are a lot of potential benefits to be had,” Laliberte reminds listeners. For example, technological advances are likely to occur in many industries such as healthcare and smart mobility.

Getting a jump start on 2020

To discover how to apply long-term investment themes to find prosperity in the short term, and learn how to respond in the face of geopolitical risk and technological changes, listen to this episode of the UBS podcast. It’s a great way to get a jump on the day during your commute, business travels or workouts. Subscribe today in Apple Podcasts or wherever you tune in.

Connect with your UBS Financial Advisor

Do you have a clear direction for the year (and decade) ahead?