Weekly Buzz: 💡 What would Einstein invest in?
Einstein had some pretty big ideas about space and time. So if he were an investor in our current day and age, he’d probably be interested in these two pioneering fields: the space industry and the longevity industry. Let’s launch right into it.
The space industry
The space race used to be a showdown between the US and Russia. But the space industry is a lot bigger than that now, and the private sector is in on the low-gravity action too.
There are over 10,000 companies now involved in the space economy, which includes any activities operating outside our atmosphere, from meteorology to space tourism. But the majority of revenue revolves around satellite-based services, like providing high-speed internet.
Analysts are predicting that the space industry will reach an astronomical $1 trillion in yearly revenue by 2040. And thanks to newer advancements, especially from private companies, space exploration is becoming much more affordable.
While the main moneymaker in the space industry is satellites, you might also want to consider a diversified investment mix. By selecting ‘Space’ under ‘Thematic Equities’ when creating a Flexible portfolio from scratch, you can invest in the space economy as a whole, which includes other companies operating above our atmosphere or which deal in supporting technologies.
The longevity industry
The longevity industry is built around helping people live longer – and helping to make those years better. A key idea here is to slow the harmful effects of ageing, or even reverse the clock.
And there are good reasons why this industry is booming right now. By 2050, a century-long lifespan will be the norm for newborns. And by 2030, nearly 30% of people worldwide will be 60 or older. This demographic shift presents a massive opportunity for businesses.
The industry is far-reaching, stretching like a Tai Chi class across sectors. With people living longer and healthier lives, new markets are already emerging to cater to the needs of an older demographic. These include anything from healthcare and biotech, to wellness and lifestyle.
In other words, there’s no single sector for this broad trend. You’re likely better off diversifying your investments, rather than concentrating your bets on a few companies – our Healthcare Innovation Thematic portfolio is one way you can start investing in this long-term trend.
📰 In Other News: The ECB decided to leave interest rates alone
The European Central Bank (ECB) erred on the side of caution last week. For the third straight meeting, it chose to keep interest rates steady at an all-time high of 4%, and stuck with its previous message that rate cuts may still be some distance away.
That message seems to be falling on deaf ears though, with traders betting on a 62% chance of rate cuts as soon as April. And that coincides with economists making gloomy revisions to their 2024 projections for Eurozone growth and inflation, reflecting recent weaker economic data.
To be fair, with attacks on ships in the Red Sea now disrupting supply chains (more on this in our Simply Finance section below) and threatening to reheat the bloc’s cooling inflation, you can see why the ECB might be a tad cautious about changing course too hastily.
These articles were written in collaboration with Finimize.
🎓 Simply Finance: Supply chain
The supply chain is the journey of a product. Picture the steps it would take for raw cotton to end up as your favourite brand’s shirt at your local mall. Each stage – farming, manufacturing, retailing, and all the transportation in between – adds value to the product as it moves along.
And this chain is often global: the cotton might be grown in India, made into clothes in Italy, and sold in stores in Singapore. So if one link in the chain breaks, say due to a shipping delay, it can have ripple effects, affecting the prices of products worldwide.
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*last updated 21 November 2023