When evaluating future long-term investment opportunities, it is vital to consider the past as well as the present. Examining the interconnections between the drivers of previous industrial revolutions, and technological advances, can help us assess the role and value of those of today: are they independent quick fixes or vital components in a new environmental infrastructure?
Throughout history, the growth of disruptive products and services has been significantly underestimated. This is true not only for growth, but also for fundamentals. For example, the rate of technological change and of cost declines have often surpassed projections.
In this paper, our Environmental Strategies Group explains how environmental solution alternatives such as green hydrogen, solar energy, electric cars or bio-plastics, to name a few, are changing and disrupting manufacturing and supply chains and transforming consumer behaviours around the world.
Can looking to the past help inform what this accelerated adoption means for the related industries and can this help inform our investment decisions? We believe so.
Please note that articles may contain technical language. For this reason, they may not be suitable for readers without professional investment experience. Any views expressed here are those of the author as of the date of publication, are based on available information, and are subject to change without notice. Individual portfolio management teams may hold different views and may take different investment decisions for different clients. This document does not constitute investment advice. The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial outlay. Past performance is no guarantee for future returns. Investing in emerging markets, or specialised or restricted sectors is likely to be subject to a higher-than-average volatility due to a high degree of concentration, greater uncertainty because less information is available, there is less liquidity or due to greater sensitivity to changes in market conditions (social, political and economic conditions). Some emerging markets offer less security than the majority of international developed markets. For this reason, services for portfolio transactions, liquidation and conservation on behalf of funds invested in emerging markets may carry greater risk.