In Ten Years There Will Be…
Bank of America knows that what moves stocks today, may not move them tomorrow. That’s why the bank’s best and brightest are brainstorming the biggest drivers of the next ten years.
Number one; “peak globalization.” The world has spent decades shrinking with the advent not only of viral interwebs but also efficient transport as well. Everything is everywhere, all of the time, and in the opinion of global strategist Haim Isreal, we’ve maxed out! He thinks we’re in for a trend reversal, with nationalism on the rise and a trade war aimed at protecting domestic industries.
Second, “we believe the current trade war will transition towards a tech war in the 2020s. That will see a new ‘arms race’ between the US and China to reach national superiority in technology.” What’s that? The first investor-friendly geopolitical rivalry since the Space Race? Now, that’s a different kind of trend reversal. An arms race could prompt massive investment in tech. Can you see it happening?
In addition to the above, the entire $20 trillion value of the S&P 500 will apparently be reinvested in efforts to stop climate change. Whether we even have ten years to wait to spend that sum, no-one dares predict. However, Bank of America does admit that morals now have their place in capitalism, and that cliché hits home once again, “kids are our future!” According to Isreal’s report, companies need to start thinking about how to serve Gen-Z consumers now!
He also eyes a recession in the next ten years (who doesn’t?), and aerospace and defense stocks zapping Beardy’s space dreams with Virgin Galactic! Isreal’s really pushed the boat out this time. We’ll be back in a decade to backtest these predictions!