InvestNow News – 16th Jan 20 – Harbour – Top 10 risks (and opportunities) for the next decade
“We always overestimate the change that will occur in the next two years and underestimate the change that will occur in the next ten. Don’t let yourself be lulled into inaction”
– Bill Gates
A decade ago, the world’s largest and fourth largest companies were oil companies, Exxon Mobil and BP. The third largest company was HSBC Bank and the sixth largest company was IBM, the inventor of mainframe computers. Entering a new decade, none of these companies are among the top 10 largest in the world; one of them isn’t even in the top 50.
This trend is not uncommon. It is very likely that many of the world’s largest companies today will not be as dominant as they once were in a decade’s time. This gives rise to risks, but also creates opportunities for investors.
Each of the risks we have identified not only has implications for share markets, be it for specific geographies and sectors, but also for another key driver of market returns, the direction of interest rate policy. With the returns of the next decade likely to be harder fought than the returns of the preceding one, we believe these risks should be at the forefront of the decision-making process of long-term investors.