In the wake of unpredictable financial markets and blurred fiscal and monetary policies from the global response to economic shutdowns, all asset owners and investors need to adapt quickly to the new financial landscape. Or otherwise face significant challenges in building and managing their portfolios in today’s new normal.
Globally, Governments have been spending big on stimulus packages, and inflation is set to hit record numbers as we progress through recovery mode. We are living in unprecedented times, and we are heading into what experts agree is a highly unpredictable future for investors and businesses.
Everything is under the spotlight – from how you set return targets and manage liquidity, to how to assess external factors that would protect you from the crash.
Opportunities of a lifetime
Many SMEs are feeling the financial challenges. Even so, the market has powered higher, fuelled by expectations of a period of strong growth after the successes of the vaccine programme and as the economy fully reopens. The outlook is not doom and gloom. Far from it. Remember, it is always in the times of greatest crisis that lie the opportunities of a lifetime.
Markets are changing rapidly. Employees are resigning from their jobs at an unprecedented rate. The great resignation, as it’s been named, where people are quitting at a faster rate than jobs were lost during the pandemic. Where are they going? Large numbers are following their passion and purpose to start their own enterprises, joining the £multi-billion gig economy or becoming retail investors.
Now is not the time to continue with the same investment strategies you had been doing prior to 2020. The landscape has changed rapidly, so the smartest thing is to re-look at investment from a new perspective. Learn how to maximise your investments using some of the top investor strategies that set you up for success in the digital decade. Get ready for the new roaring twenties.
Look towards disruptive technologies
Think back to the stock market crash of the 1920s, if you’d have told people then that within the next decade TVs would become readily available in people’s homes and TV networks would become industry giants, they would’ve been doubtful. Right now, we need to look towards the disruptive technologies that will skyrocket in next 10 years.
Learn from renowned investors like Masayoshi Son, who was one of the first to invest in companies like Yahoo, Slack, Uber – all highly lucrative ventures in disruptive tech. The four key areas to focus on now are: Fintech, Edtech, Greentech, Medtech – all trillion-dollar industries that are transforming the business landscape.
We are living in a vastly different world to 20 years ago when money itself is no longer the highest transactional value. The popularity of non-fungible tokens (NFTs) has surged in 2021, and the upward trend is set to continue into 2022 and beyond.
NFTs are basically a tool for providing proof of ownership of a digital asset that can be attached to anything from a Tweet to a JPEG image. If you aren’t familiar with how it works, it’s time to get to know it. Artists, influencers and celebrities are making huge profits using NFTs and their use is becoming more mainstream. Take digital artist Beeple, who sold a collection as an NFT through auction house Christies for nearly $70 million recently, making him one of the most valuable living artists in the world. In future we will see the same thing happening with physical objects as well as digital entities.
The speed of pace at which this is taking place is accelerating massively and your investment strategies need to take this into account. We are going to see property owned via NFTs and more. This allows anyone to be a collector, or trade collectibles. It opens a global marketplace to you and is transforming everything when it comes to assets.
With NFTs, tokenisation, digital ownership and digital currencies becoming the norm we will begin to see everything linked to blockchain. With digital assets, virtual land and a new digital graffiti world, we will embark on an entirely new world where we get to rewrite the rules.
The boom in NFT’s is linked to the rise of the metaverse. The metaverse is, simply put, it’s a 3D digital world that is soon going to replace the 2D internet. Often referred to as extended reality, the core idea of metaverse is to create a 3D virtual environment which you don’t just see but become immersed in when you socialise, manage businesses, investments and more.
During the next decade, digital currencies and the meta economy will grow so big that billionaires in the metaverse will be richer than the billionaires in the real world.
Ownership of digital objects that can be easily bought and sold in the metaverse are now growing fast – from art, collectibles, games, music, property and virtual land. As the metaverse becomes planet sized and linked to our real world, digital currencies will become the new normal.
The strength of cryptocurrencies is increasing exponentially. We are seeing disruption in the property markets where increasing numbers are investing outside their normal currency and using cryptocurrencies in particular. This makes perfect sense as there’s little point in your property investments going up by 20% if your currency decreases by 20%. So, think about hedging against your country as well as hedging against your asset base. Property is a key hedge against inflation.
Another key growth trend is impact investing – for profit and purpose. Millennials and Gen Z-ers are the driving force behind the conscious investor trend, motivated by their sense of purpose and values.
As we see the wealth transfer from Baby Boomers to their younger counterparts there is potential for exponential growth in impact investing over the next decade. All the key growth areas, such as greentech and edtech, offer positive impacts on society as well as high returns. Surely a win-win for everyone.
Prepare for impact investing by researching exactly what you want to be a part of, making a plan so that you know what your pathway is. It is about spotting the emerging trends and jumping in at the opportune moment.
The old rules have changed. Now it is no longer about how big your business or investments are, but how fast and nimble you can be to get into the right thing at the right time.
About the Author
Roger James Hamilton is a New York Times bestselling author and Founder and CEO of Genius Group, a multi-million-dollar group of companies including GeniusU, Entrepreneurs Institute, Entrepreneur Resorts and Genius School. GeniusU is an edtech company and platform providing over 2 million students with personalised learning paths and is currently seeing over 1300 new students join each day to take the entrepreneur quiz and identify their path to wealth. Genius School provides education courses for young people from 0 to 25 years old. Entrepreneurs Institute provides training courses from 25 to 100 years old, and Entrepreneur Resorts is a market leading group of entrepreneur focused luxury resorts and lodges, beach clubs and city co-working hubs, offering business leaders professional educational retreats in exotic destinations around the world, including Singapore, Bali and South Africa. Entrepreneur Resorts will be expanding to 10 further locations this year. Roger is the creator of Wealth Dynamics, Talent Dynamics and Impact Dynamics, used by over 2 million entrepreneurs to follow their flow.