“The pandemic put a brake on the world’s economy, while at the same time challenging existing systems and structures and sowing the seeds of new changes to come as we discover limitations in the way we learn, work, and Live ”, begins the presentation of the Credit Suisse bank of the global report ‘Supertrends. Driving change. ‘
The report was led by Michael Strobaek , Global Chief Investment Officer of Credit Suisse , and Nannette Hechler-Fayd’herbe , Global Head of Economics & Research of the same institution. It is actually an update of the work prepared and presented three years ago under the name of ‘Supertrends’. Its purpose was to serve as a frame of reference for the bank’s clients, to invest long-term in what they called “high conviction thematic equities” .
This crisis has already modified existing systems and structures, while sowing the seeds of changes to come, as we discover the limitations in our way of learning, working and living. In many ways the world will not be like it used to be, and that includes investments , which will be more trend-focused.
However, there are “values” that will not be lost, but will deepen over the years because they are part of the way of being and living of the new generations. Starting with the Millennials, some of these values are sustainability, responsible consumption and social responsibility linked to issues such as actions in health, education and corporate governance.
One broad ’21 sustainability trend: the transition to lower-carbon use, says Credit Suisse’s @lydie_hudson in our podcast. The transition “will lead to a lower cost of capital … but it doesn’t come for free.” Listen to the podcast: https://t.co/J8sZn6ryrTpic.twitter.com/9jkNZcwUtu
According to the report of the Swiss bank, there are five major investment trends that with the pandemic will become increasingly relevant . It is important to note that the study does not refer to investments in specific stocks and even specific sectors, but to the trends that investors will have in the coming years, encouraged by the changes generated by the pandemic. This phenomenon that, according to Credit Suisse, has changed the planet forever and in the future the dimension and depth of these changes will be clearly seen.
1) Climate change– Decarbonize the economy
Investors will have reason to direct resources to companies that contribute more effectively to the transition to a less carbon-intensive global economy. The recent economic strike, caused by the COVID-19 pandemic, has significantly reduced greenhouse gas emissions in several regions. This is a clear sign of what could be achieved in the future, creating a more sustainable and carbon-free global economy. The key sectors where investment trend focuses are: the production of carbonlessandLECTRICITY, transport, pioneers actors change in the gas industry and oil; agriculture and food production.
2) Concerned Societies – Inclusive Capitalism
In Credit Suisse’s view, popular discontent is more related to national issues, particularly inequalities, than to the perception of external threats and the tendency towards protectionism. Anger has given way to worry. Credit Suisse, with the help of a new index, keeps track of whether concerns are increasing or decreasing. COVID-19 has shown that the true emerging threats are global in nature and require multilateral cooperation as well as individual protection.
3) Silver Economy –Investing in demographic change
An aging population will likely continue to drive business opportunities and return on investments for many years to come. In emerging markets in particular, aging will occur at a speed never experienced in most of these countries.
4) Infrastructures –Closing the gap
Infrastructure spending is about to enter a phase of expansion. There are gaps, they are everywhere, as old economies have to cope with both existing and new needs, and also taking into account the trend towards greater sustainability . At the same time, the new economies continue to urbanize at a rapid pace . The expectation of lower and sometimes even negative interest rates over a prolonged period should provide an adequate stimulus for investment.
5) Technology at the service of man
Continuous innovations and challenges arising from the coronavirus crisis continue to make technology an attractive sector for investors, technological progress is irreversible.
These long-term investment trends, along with other changes caused by the unexpected pandemic, will cause surprises and unprecedented scenarios, which in fact will only be part of the new normal, says Credit Suisse .
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
