Thematic investing, which centres on the long-term forces that shape consumer needs and industries, is a way for investors pivot away from traditional 60-40 portfolios to a broad and diversified set of opportunities that can create market-beating returns spanning several generations.
Given that there is now ‘more upside than downside’, Guy Davies, deputy head of investments, tells Daniel Morris in this Talking heads podcast that he believes this is a good time to set up or build positions in thematic stocks.
At a time when growth is scarce, he argues that areas enjoying strong support – be it from the public, policymakers or regulators – are valuable. He also highlights the eventually deflationary nature of themes such as the internet of things and blockchain, the carbon transition, wellness and healthcare, and fintech.
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