Pictet – Megatrending Opportunities Ahead

Pictet has identified three megatrends to explore in their report: resource scarcity, (de)globalisation, and the service economy. These trends have been analyzed by financial professionals within Pictet, as well as members of external advisory boards, and experts from various fields. The first megatrend, resource scarcity, highlights the increasing pressure on the earth's natural resources due to a rising global population and higher income per capita. This scarcity has been exacerbated by man-made emissions and climate change. The report emphasizes the need for resource efficiency innovation as a driver for economic growth. The second megatrend, (de)globalisation, describes the reshaping of the economic order. In recent years, businesses and governments collaborated across borders, leading to more efficient supply chains and increased profits. However, political upheavals, the emergence of China as a competitor to the US, the global pandemic, and conflicts have exposed the weaknesses of a globalized economy. As a result, businesses are now prioritizing robust supply chains over efficiency. The third megatrend, the service economy, focuses on the growing role of the services sector in both developed and developing countries. This is partly due to urbanization, which leads to increased education, competitiveness, and specialization. The report highlights the rapid growth of the services sector compared to manufacturing and agriculture. Overall, Pictet's report delves into these three megatrends, discussing their causes, current state, and investment opportunities. By analyzing these trends, investors can better navigate the changing economic landscape and identify potential areas for growth.