Get an overview of the mega trends shaping our future

Get an overview of the mega trends shaping our future

26 July 2021 from Ophelia InvestReading time: 3 minutes

As an investor, it can be difficult to know what share to choose, how to assess just what the share is worth and how it might do in the future. It can therefore be easier just to consider what megatrends you think might do well in the future, and then invest in these.  In a series of articles we are focusing on Mega Trends in collaboration with Vontobel, an investment manager with Swiss roots. We have chosen Vontobel as a sponsor for this theme because they offer Trackers that follow three of the largest Mega Trends: Cyber Security, Artificial Intelligence and Hydrogen. The article contains affiliate links but is written objectively in order to inform you of those megatrends.

What is a mega trend?

A Mega Trend can be characterized as a structural and societal change in a particular direction on a global level. For example, a political, economic, geographical or environmental flow. Digitalization or a bigger focus on sustainability are both examples of megatrends. Some megatrends that currently seem to be changing the world are urbanization, aging population, sustainability, IT security (Cyber Security), hydrogen and artificial intelligence.

Cyber Security

We live in a world that is becoming more and more digitalized. Many of us use significant parts of our time online, both when we work and in our spare time. Unfortunately, this causes cyber crime to become more widespread and cyber security has become more and more relevant. Cyber Security is designed to protect IT systems, digital networks and software programs for digital attacks. When hackers perform cyber attacks, they often gain access to sensitive information. The purpose of such an attack could be to blackmail money from the owner of the sensitive information. Implementation of effective IT security measures is therefore incredibly important. We have several opportunities to invest in companies dealing with IT security. First of all, we could invest in large IT companies that make different IT products and, cyber security company. Another option is to invest in companies that deal exclusively with Cyber Security. Examples of companies that develop cyber security can be the listed company McAfee, which among other things develop antivirus programs, or the company Cyberark, working with information security in the field of financial markets, among other financial markets. Vontobel offers a tracker certificate that focuses on Cyber Security. You can read more about the certificate and mega trend here. You can see the Tracker certificate here, including the binding documentation consisting of final terms and base prospectus.

Artificial intelligence

Some future researchers believe AI (artificial intelligence) will gain enormous importance in the future. Artificial intelligence deals with getting machines to think like humans. One distinguishes between 'soft' and 'hard' artificial intelligence. 'Hard AI' is trying to get computers to build an awareness equivalent human being. Conversely, 'soft AI' involves getting robots to behave like people without having a 'consciousness'. Already today, artificial intelligence is a natural part of everyday life. For example, we find artificial intelligence in robot vacuum cleaners, self-propelled cars and chat robots on phones and computers. Many large companies invest large sums of money in developing formificial intelligence. If you want to join the AI wave, you can invest in Alphabet (Google), Amazon, Microsoft, IBM or Facebook. Vontobel offers a tracker certificate that focuses on AI. You can read more about the certificate and mega trend here. You can see the Tracker certificate here, including the binding documentation consisting of final terms and base prospectus.  

Hydrogen

In recent years, electric cars have stormed onto the Danish roads. But we may also have to get used to seeing more cars running on hydrogen in the future. But what is the benefit of hydrogen as an energy source compared to electricity and fossil fuels? Hydrogen can be seen as the best of both worlds. Cars that run on hydrogen emit no pollutants, only water. At the same time, they are not limited by long charging times like electric cars, as hydrogen cars can be refuelled just like normal cars. Investment bank Barclays expects up to 10% of cars and 35% of trucks by 2050 to run on hydrogen. Hydrogen is therefore expected to become relatively widespread.

Vontobel offers a tracker certificate that focuses on hydrogen. You can read more about the certificate and the mega trend here. You can view the tracker certificate here, including the binding documentation consisting of final terms and base prospectus.

Important Notice

This information is neither an investment advice nor an investment or investment strategy recommendation, but advertisement. The complete information on the securities, in particular the structure and risks associated with an investment, are described in the base prospectus, together with any supplements, as well as the final terms.

It is recommended that potential investors read these documents before making any investment decision. The documents and the key information document are published on the website of the issuer, Vontobel Financial Products GmbH, Bockenheimer Landstrasse 24, 60323 Frankfurt am Main, Germany, on prospectus.vontobel.com and are available from the issuer free of charge. The approval of the prospectus should not be understood as an endorsement of the securities. The securities are products that are not simple and may be difficult to understand.

18/01/2022 16:45:51

 

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