Short termism is a problem as it undermines future economic growth as the lack of long-term investments leads to slower GDP, higher unemployment and lower investment returns.
The need to improve general public health in Asia creates good investment opportunities. Especially improvements related to the environment and air pollution offer multi-year growth potential.
”Reversion to the mean” is viewed by many as a natural law. But the story of humanity is one of long-term progress.
We believe that a fourth Internet – Jio – is currently emerging in India.
In today’s cloud and streaming based world, the subscription model has attracted ever more attention over the past few years, from both consumers as well as businesses.
Over the last half a century, Moore’s Law has been a key force driving global economic growth.
The market narrative often centers around the old question of “growth vs value”, a debate that goes as far back as the 1930’s with the founding of T. Rowe Price.
The publishing market is changing, and so is the way we consume literature. Audiobook and e-book sales are rapidly gaining traction while physical books sales are falling – but results indicate the new formats actually lead to more, not less, reading of physical books.
Technology and internet shares (“Connected Lives”) have been on a tear and have been the sector leading equity markets higher. For instance, in 2017, US technology shares rose almost double compared to S&P 500, which rose 22% in USD. Does this mean that technology stocks have risen too fast and are overpriced, thus arguing for a lower portfolio allocation?
Today, people are increasingly spending more money on enjoyable activities rather than buying physical things. As a result, experiences have become an important competitive parameter as they add value to a product and have the potential to increase differentiation.
The middle class in Europe and the USA is burdened with debt and may not in the future be the growth engine it has been for the last 50 years. However, the fast growing middle class in many developing countries today and the implied increased disposable income clearly indicates that a new strong purchasing power is emerging.