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Top ten investment trends for the next 10 years – Wealth Professional

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“We’re likely going to see emerging markets companies move from copycats to true innovators,” Thomsen said. “We used to refer to companies like Alibaba as the ‘the Amazon of China’ or Baidu as the ‘Google of China’, but these companies have really developed and localized their technology, while accelerating their growth in ways different from the U.S.”

Successful new entrants may scale more quickly than older companies. “Consider Pinduoduo, which is an e-commerce company in China that is less than 10 years old but has already surpassed a US$100 billion market cap. Likewise, the US$150 billion multi-service platform Meituan has over 450 million active users. There are going to be a lot more of these cropping up across industries.”

4. The prognosis looks good for a cancer cure

A cure for cancer? Really? According to Frank, this is closer than you think thanks to breakthroughs in gene therapy and new applications of artificial intelligence, which are accelerating drug development.

She said: “I believe some cancers will be functionally cured with cell therapy between now and 2030. New, reliable tests should enable very early detection of cancer formation and location. Beyond 2030, cancer could be largely eradicated as a major cause of death through early diagnosis.”

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Brookfield Infrastructure Sees a 100-Year Investment Opportunity in Data – Motley Fool

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Data is the oil of the digital economy. Like crude over the last couple of centuries, information is what drives the new economy forward. The similarities don’t stop there because, like oil, data relies on infrastructure to transform it from its raw form into something more useful. However, instead of pipelines, processing plants, and storage terminals, data needs fiber optic cables, telecommunication towers, and data centers to keep the digital economy humming along. 

That leaves a massive opportunity for companies to build out and operate data infrastructure. One of the many focused on this space is Brookfield Infrastructure (NYSE:BIP)(NYSE:BIPC), which has been pouring capital into acquiring and developing data infrastructure in recent years. It expects that trend to accelerate and last for many decades, given the opportunity it sees ahead for data infrastructure.

Image source: Getty Images.

A century-long investment opportunity

The oil industry spent more than a century building out the infrastructure needed to support the economy’s ever-growing thirst for crude. Brookfield sees a similar megatrend investment opportunity in data as the economy consumes an increasing amount of digital information.

Overall, two factors drive the need for more infrastructure investments in the near-term. First, the existing data infrastructure is aging. As a result, it’s struggling to keep up with growing global technology demand growth. Second, the telecom industry needs to replace existing networks with faster and leaner fiber infrastructure and prepare to support the roll-out of 5G technology. These upgrades will require an estimated $1 trillion of global capital investments over the next five years alone. Meanwhile, the longer-term investment opportunity is equally vast, likely to power steady growth for infrastructure companies.

A communications tower on top of a hill with brightly colored clouds in the background.

Image source: Getty Images.

Accelerating its investment strategy

Given the enormousness of the data infrastructure market opportunity, Brookfield plans to invest an increasing amount of capital into the sector over the next several years. It has been methodically building out a data infrastructure platform in recent years. Brookfield launched into this sector in late 2014 when it participated in a consortium to acquire a 50% stake in a French communication tower infrastructure business, investing $500 million into that $2.2 billion deal. Meanwhile, over the past three years, the company has invested about 20% of its $1.5 billion average annual growth capital spending (or roughly $300 million per year) into building its data infrastructure platform. 

However, it has accelerated its investments in the sector this year, already spending half of its $1.7 billion growth investment on data infrastructure. The main drivers were a $150 million equity investment in a U.K. telecom business and a $600 million equity investment in an Indian telecom towers portfolio.

The company expects to continue allocating an outsized portion of its capital to expanding its data infrastructure operations over the next three to five years. In its view, it will increase its overall growth investment spending target to more than $2 billion per year. Meanwhile, it anticipates allocating 35% of that higher budget on data-related investments during that period, up from 20% of its lower investment rate during the previous three years.

Some of that shift is because many of its recent acquisitions included an embedded growth component. For example, there’s growth potential at its Indian tower portfolio as it builds additional towers to support its current tenant and add new ones to existing towers. Meanwhile, in late 2018, the company partnered with REIT Digital Realty (NYSE:DLR) to acquire Ascenty, a data center business in Latin America. When they bought the company, it had eight data centers in Brazil in operation and 14 total when including those under construction. It now has 22 in operation or under construction and has expanded its reach into Chile and Mexico.

Meanwhile, the other driver of the company’s accelerated investment in data will be additional acquisitions. Given the industry’s need for capital, Brookfield will likely focus on acquiring data infrastructure companies that need access to funding for organic expansion projects or to make bolt-on acquisitions. For example, Brookfield tried to buy Cincinnati Bell (NYSE:CBB) earlier this year to accelerate the expansion of its fiber network. While a rival infrastructure fund outbid it for that company, there’s no shortage of capital-starved data infrastructure companies out there, suggesting it should have plenty of opportunities to acquire other companies or business units. 

An ultra-long-term investment opportunity

Because Brookfield Infrastructure believes we’re still in the early innings of a data infrastructure investment megacycle, the company anticipates that it will have an increasing amount of compelling investment opportunities in the sector over the next several years, which is driving it to boost its spending target and allocation to the space. That bright outlook suggests that the company should have no problem continuing to generate outsized total returns for its investors, making it the ultimate buy-and-hold stock to create long-term wealth.

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Singh: New measures should be seen as an investment in Canadians | Watch News Videos Online – Globalnews.ca

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NDP Leader Jagmeet Singh talks to West Block host Mercedes Stephenson about the deal he struck with the Liberals to support the throne speech and avert an election after the government agreed to expand access to paid sick days amid the coronavirus pandemic.

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1 Must-Have Investment If You're Worried About a Stock Market Crash – Motley Fool

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After a devastating crash earlier this year, the stock market made a stunning recovery in the months that followed.

However, the last few weeks have been rough on the market. The S&P 500, the Dow Jones Industrial Average, and the Nasdaq have all slid into correction territory, each dropping by roughly 10% since early September.

While nobody knows for certain whether a bear market is around the corner or not, it’s wise to prepare for a market crash anyway. And there’s one investment that will give your savings the best shot at recovering from even the worst market downturn: S&P 500 index funds.

Image source: Getty Images.

S&P 500 index funds boast two major advantages: They provide instant diversification, and they’re extremely likely to bounce back from market downturns. Both of these perks can play in your favor if the market continues its downhill slide.

1. Instant diversification

When you invest in an S&P 500 index fund, you’re actually investing in 500 of the country’s largest companies at once. These organizations have a proven track record of success, making them more likely to survive tough economic times.

In addition, spreading your money across hundreds of different stocks can limit your risk substantially if the market continues to fall. Even if a few companies within the S&P 500 take a nosedive, it won’t cause your entire portfolio to plummet.

Of course, the S&P 500 itself could take a turn for the worse, and the index has already experienced a decline over the last few weeks. However, no matter what the market does, S&P 500 index funds are among the investments most likely to recover from a crash.

2. Almost guaranteed recovery

Nothing is ever guaranteed when it comes to the stock market, but S&P 500 index funds are about as close as you can get to guaranteed recovery after a market crash.

As their name implies, S&P 500 index funds track the S&P 500 — so whatever the S&P 500 does, the index fund will mimic it. Historically, the S&P 500 has always recovered from every downturn it’s ever faced. Even after the Great Recession in 2008, as well as the unprecedented crash earlier this year, the S&P 500 managed to bounce back stronger than ever.

^SPX Chart

^SPX data by YCharts

Again, nobody knows whether the current market downturn will get worse in the coming weeks or months, but even if it does, there’s a very good chance the S&P 500 will recover. There will always be ups and downs over the years, but in general, the S&P 500 has experienced a strong upward trend over time. That means even if the market crashes, it’s extremely likely your index funds will recover.

Is it the right time to invest?

S&P 500 index funds are long-term investments, and there’s never necessarily a bad time to invest for the long term. In fact, market downturns are one of the best opportunities to invest, because stock prices are lower, so you can get more for your money.

The key is to make sure you can leave your money alone for years or even decades after you invest. S&P 500 index funds do see positive returns over time, but like any investment, they are subject to volatility in the short term. So to make the most of your money, your best bet is to invest and then sit back and wait.

A market crash may be looming, but that doesn’t have to be a scary thought. By investing in the right places and taking advantage of S&P 500 index funds, you can give your money the best shot possible at surviving a market downturn.

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