The biggest opportunity in equity investments is to look for companies that can compound their earnings over many years or even decades. We emphasize sustainability of growth over magnitude of growth.
Moore’s Law has been one of the most important drivers of productivity and economic growth over the last 50 years.
The Cloud will be the foundation for the digital transformation of enterprises as we enter the Second Machine Age. Information technology leveraging a Cloud infrastructure is becoming a central and strategic priority for most businesses. This is a fundamental change that will play out over many years.
The European auto industry has for several years seen significant secular headwinds from a technology change that will also challenge the business models of the auto industry in the next decade.
The roll-out of 5G is the most visible battle ground in the new US-China Tech War. Chinese companies have, through very large investments, gained the upper hand and today dominate the standards that will guide the development of future mobile networks globally.
The underperformance of European equities over the last decade has been massive. We believe this is attributable to both the composition of equity markets with Europe having a deficiency in large cap growth companies as well as the severe underperformance of its banks.
We are today observers of a tectonic shift of power and an ongoing re-appraisal of how traditional politics, economies, security pacts, and societal relationships are going to be disrupted. The old world order is being dismantled and a new one is being created.
How do demographics impact real interest rates and the equity markets?
An unprecedented ageing process is unfolding across the world. The share of the population over 65 has gone from 8 pct. in 1950 to almost 20 pct. in 2015 in industrialized countries and is projected to keep rising towards 30 pct. for many countries by 2030. This has significant investment implications.
The term 'Amazonification' is the latest buzzword in the investment world, as Amazon countries to make headlines.