BUSINESS

Economic trends that will dominate the 2020s

&NewLine;<p><em><strong>From preventative medicine to smart mobility to 5G – the 2020s will see significant trends driving global growth over the next decade&period;<&sol;strong><&sol;em><&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p><em><strong>In this piece made available to OpenLife by Media Web&comma; Jonathan Sieff&comma; Senior Portfolio Manager at Sasfin Wealth&comma; offers a Global Innovation Portfolio that provides investors with exposure to seven themes that would enable them navigate the 2020s corridor<&sol;strong><&sol;em><&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>The&NewLine;Roaring Twenties of nearly 100 years ago was defined by a surge of consumerism&comma;&NewLine;a brightly revitalised global economy and the arrival of the concept of &OpenCurlyQuote;mass&NewLine;culture’&period; It was the era of jazz hands&comma; fresh ideas and glamorous invention&period; It&NewLine;was also a time of significant political and social change &&num;8211&semi; an undercurrent&NewLine;that charged conversations and technological innovation&period; Into this decade of&NewLine;post-war ennui and awareness came the telephone&comma; the radio and the instant&NewLine;camera along with a slew of other inventions that changed the course of&NewLine;history&period; <&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>Today&comma;&NewLine;the world awaits the 2020s&comma; with eager anticipation and much excitement&comma; as a&NewLine;decade likely to be defined as much by further leaps in technological&NewLine;innovation as by its socially influenced political and economic upheavals&period; The&NewLine;resultant landscape&comma; filled with roaring changes&comma; will inevitably require a&NewLine;much more comprehensive level of understanding to most effectively capture the&NewLine;resultant growth opportunities&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>&OpenCurlyDoubleQuote;There&NewLine;are seven major themes that will drive global growth over the next decade&comma;”&NewLine;says Jonathan Sieff&comma; Senior Portfolio Manager at Sasfin Wealth&period; &OpenCurlyDoubleQuote;These will&NewLine;change the way we live&comma; the way we travel&comma; how we engage and collaborate&comma; and&NewLine;how we work&period; Each of these themes should form part of any forward-thinking&NewLine;investment portfolio to ensure it is capable of benefiting from these specific&NewLine;market forces&period;”<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>Healthcare&NewLine;innovation&nbsp&semi;is the first theme that will dominate the decade&period; The cost of&NewLine;medical solutions has reduced exponentially over the years – the complex&NewLine;process of mapping the human genome cost over &dollar;1bn when it first emerged&comma; but&NewLine;by the mid 2020’s it will be mapped for less than a few hundred dollars&period; This&NewLine;has huge ramifications for preventative medicine as doctors can use genome&NewLine;mapping to assess cell mutations and invest in preventative care that could&NewLine;mitigate the health impacts of obesity&comma; cancer and so much more&period; This will be&NewLine;complemented by further advancements in robotic surgery&comma; preventative&NewLine;diagnostic equipment&comma; improved education and medical intervention techniques&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>&OpenCurlyDoubleQuote;The&NewLine;second trend is&nbsp&semi;smart mobility&comma; which includes combining materials like&NewLine;lithium and cobalt with metalloids&comma; such as silicon&comma; or innovative organic&NewLine;compounds to produce the batteries of the future&semi; new technologies required to&NewLine;drive the concept of e-mobility forward&comma;” adds Sieff&period; &OpenCurlyDoubleQuote;The next decade will see&NewLine;significant refinements to connected vehicles and mobility solutions that will&NewLine;fundamentally change the way we travel such as autonomous vehicles that bypass&NewLine;fossil fuels entirely&period;”<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>The&NewLine;third trend lies in a buzzword that dominates media today but has yet to&NewLine;deliver on its promise – the&nbsp&semi;Internet-of-Things&nbsp&semi;&lpar;IoT&rpar; and its&NewLine;enabler&comma;&nbsp&semi;5G&period; IoT involves digitally animating the physical world&comma; using a&NewLine;vast array of devices&comma; with 5G enhancing the speed and reliability of&NewLine;connections across the globe&period; For now&comma; 5G penetration is still relatively low&NewLine;globally&period; For example&comma; the concept of the smart home has yet to entrench itself&NewLine;as a modern living standard&period; Only 3&percnt; of homes in the United States are smart&NewLine;homes&comma; with seamless communication between devices to enhance quality of life&period;&NewLine;The next few years should see this concept become increasingly accepted and&NewLine;entrenched as the costs of internet access&comma; mobility and technology reduce&NewLine;further&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>&OpenCurlyDoubleQuote;In&NewLine;addition to 5G enablement&comma;&nbsp&semi;robotics and artificial intelligence&nbsp&semi;&lpar;AI&rpar;&NewLine;will continue to have a huge impact on the Fourth Industrial Revolution &lpar;4IR&rpar;&comma;”&NewLine;he says&period; &OpenCurlyDoubleQuote;Technology and cost efficiencies will redefine consumer robotics and&NewLine;improve quality of living by automating a number of previously menial human&NewLine;functions&period;”&nbsp&semi; AI-assisted diagnostics will be able to provide personalised&NewLine;care and improved treatment outcomes&comma; and by considering all available&NewLine;evidence&comma; deliver predictive analytics to detect hidden factors and reduce side&NewLine;effects through personalised drugs&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>One&NewLine;of the major trends that will continue to lead in the Roaring Twenties will&NewLine;be&nbsp&semi;digital entertainment and eCommerce&period; In terms of digital entertainment&comma;&NewLine;&OpenCurlyDoubleQuote;online content and how people access and aggregate their information will&NewLine;continue to innovate&comma;” explains Sieff&period; &OpenCurlyDoubleQuote;Online streaming TV is fast replacing&NewLine;cable and satellite delivery and this trend will accelerate&period;&nbsp&semi; Alongside&NewLine;this trend&comma; the world of advertising is clearly trending towards programmatic&NewLine;advertising&comma; which will have a powerful impact on personalisation and eCommerce&NewLine;growth&period;”<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>In&NewLine;many countries&comma; eCommerce is still not fully established&period; Even the United&NewLine;Kingdom has only 30&percnt; of its consumer base embedded in digital&period; The 2020s will&NewLine;see the omnichannel retail world continue to shift on its axis to become&NewLine;increasingly accessible and relevant to the consumer&period; This will be particularly&NewLine;obvious in developing countries&comma; such as South Africa&comma; where the online market&NewLine;remains limited but is now showing signs of significant growth&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>The&NewLine;penultimate theme is&nbsp&semi;cloud computing and cybersecurity&period; This market is&NewLine;growing exponentially and is extremely competitive&period; It will be defined by&NewLine;continuous innovation&comma; embedded cybersecurity&comma; and privacy of information&period;&NewLine;These factors will influence which organisations thrive and which wither over&NewLine;the decade as those that adapt will likely grow alongside cloud demand&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>&OpenCurlyDoubleQuote;Finally&comma;&NewLine;the&nbsp&semi;clean energy&nbsp&semi;conversation will dominate in the 2020s&comma;” says&NewLine;Sieff&period; &OpenCurlyDoubleQuote;There is an increasing awareness of the need to live more sustainably&NewLine;and to invest into renewable power innovation&period; Innovation has become a&NewLine;necessity&comma; given the environmentally harmful nature of fossil fuels over and&NewLine;above their finite nature&period; It has also improved the relative cost advantage for&NewLine;renewable options as population growth and ongoing urbanisation continue to&NewLine;drive the increased consumption of electricity&comma; particularly in a world of more&NewLine;interconnected devices&period;”<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>&OpenCurlyDoubleQuote;These&NewLine;seven trends will govern how we live&comma; work&comma; commute and entertain&comma; and will&NewLine;redefine the infrastructure within which we operate&period; They are interconnected&NewLine;and dynamic&comma; making the landscape even more exciting in term of its potential&NewLine;and how it will influence investment and markets&period;”<&sol;p>&NewLine;

Openlife Reporter

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