As we begin a new decade, one thing is undeniable: technology bears a far greater influence on our daily lives and investment portfolios than it ever has.
The impact has been so spectacular that the dispersion between companies, individuals, and investors embracing technology and those who haven't has never been wider. It is unsurprising therefore that understanding where we are in this cycle, and how best to navigate it, dominates company boardrooms and investment forums alike.
In this feature-length report, we review the technology landscape from multiple angles. From a top-down perspective, we find that technology's influence will likely be even greater this decade in relation to areas such as how we work and our ability to tackle climate change, versus the 10 years just passed.
Industries such as healthcare and education are set to be some of the most transformed by technology, having been among the slowest to ride the adoption curve thus far. On the other hand, we find that some trends are already beginning to mature, while a number of companies will face increasing scrutiny from regulation and growth may succumb to the gravitational pull of the law of large numbers.
With a recession bearing down on the economy, and indexes increasingly dictated by a few large companies, we believe continuing to deliver strong risk-adjusted returns will not only require a more targeted approach, but also differentiated holdings.
Some of the most attractive ways to invest in the next 10 years are likely to be found in specific technologies, profit pools, and industry verticals that are generally less well understood - but wherein many of the strongest competitive advantages and structural growth stories are to be found. All this considered, individual company fundamentals matter more than ever before.
Subscribe below to Instuitional Edition to receive my latest articlesAndy Gardner, Investment Manager - Global Equities
While every care has been taken in the preparation of this article, AMP Capital Investors Limited (ABN 59 001 777 591, AFSL 232497) makes no representation or warranty as to the accuracy or completeness of any statement in it including, without limitation, any forecasts. Past performance is not a reliable indicator of future performance. The information in this document contains statements that are the author’s beliefs and/or opinions. Any beliefs and/or opinions shared are as at the date shown and are subject to change without notice. This article has been prepared for the purpose of providing general information, without taking account of any particular investor’s objectives, financial situation or needs. It should not be construed as investment advice or investment recommendations. An investor should, before making any investment decisions, consider the appropriateness of the information in this article, and seek professional advice, having regard to the investor’s objectives, financial situation and needs.This article is solely for the use of the party to whom it is provided and must not be provided to any other person or entity without the express written consent of AMP Capital.