• What Is the Next Economic Megatrend?

  • Sep 6 2024
  • Length: 4 mins
  • Podcast

What Is the Next Economic Megatrend?

  • Summary

  • https://www.alainguillot.com/whats-the-next-mega-trend/ Throughout history, several major economic trends have shaped the world. These include: Agricultural Revolution (~10,000 BCE): The transition from hunter-gatherer societies to settled agricultural communities, leading to the rise of the first civilizations. Invention of the Printing Press (1440s): By Johannes Gutenberg¹, revolutionizing communication and spreading knowledge, which fueled the Renaissance² and Reformation³. Industrial Revolution (18th-19th Century): The introduction of machinery, including the steam engine, transformed manufacturing and transportation. Electrification (Late 19th Century): The widespread adoption of electricity transformed industries, homes, and cities. Invention of the Internet (1960s-1990s): This development revolutionized global communication, commerce, and information access. While many companies have emerged since the Internet’s inception, notable winners include Amazon, Google, and Microsoft. While past performance is no guarantee of future results, studying historical trends and outcomes can help us make better decisions. Which are the trends of the present Artificial Intelligence (AI): Investments in AI-driven companies continue to be a major trend, creating significant changes in how we work and study. Companies like Nvidia, Microsoft, Open AI (the creator of ChatGPT), and Alphabet (Google) are leaders in AI innovation. Pharmaceuticals: New weight loss drugs like Wegovy and Ozempic are attracting significant investor attention. Companies like Novo Nordisk and Eli Lilly, the creators of these drugs, have seen their stock prices increase by approximately 100% per year. Which are the trends of the future This raises an intriguing question: Are there investments that haven’t yet entered the mainstream where early adopters could reap substantial returns? No one can predict the future, but I will put my money on Technology Select Sector SPDR Fund (XLK) ($209.35) which is heavily weighted toward companies like Apple, Microsoft, and Nvidia and Communication Services Select Sector SPDR Fund (XLC) ($85.56) which include companies such as Alphabet (Google), Meta Platforms (Facebook), and Disney. With the exception of Disney, all of those companies have have huge networking effects, and monopoly powers that only the government could derail their dominance. During the past 12 months XLK is up 21.87%, the S&P 500 is up 20%, and XLC is up 27.51% Which industries do you think will lead in the next 12 months?

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