Business Insider India has updated its Privacy and Cookie policy. We use cookies to ensure that we give you the better experience on our website. If you continue without changing your settings, we\'ll assume that you are happy to receive all cookies on the Business Insider India website. However, you can change your cookie setting at any time by clicking on our Cookie Policy at any time. You can also see our Privacy Policy.
BANK OF AMERICA: 10 main themes will define the next decade. Here are the winners and losers for each.
BANK OF AMERICA: 10 main themes will define the next decade. Here are the winners and losers for each.
Daniel StraussDec 4, 2019, 23:43 IST
Advertisement
Reuters/Pawel Kopczynski
Bank of America Merrill Lynch analysts published a list of 10 megatrends that could shape the next decade for investors.
The next 10 years will be unlike anything seen before as climate change and a growing and aging population continue to present new challenges, the firm said.
Here are the 10 themes that will define the next decade, along with winners and losers for each, according to Bank of America.
By 2030, the world's population is expected to grow by one billion, with hundreds of millions at risk of losing their jobs to automation. At the same time, the climate crisis is worsening across the globe.
These are just a few of the trends that investors will be forced to grapple over the next decade, according to Bank of America Merrill Lynch.
The bank compiled a list of 10 themes to help investors navigate the massive changes it expects in the coming years. The report also includes some broad winners and losers for each theme.
"We enter the next decade with interest rates at 5,000-year lows, the largest asset bubble in history, a planet that is heating up, and a deflationary profile of debt, disruption and demographics," the firm's analysts wrote in November.
Advertisement
They continued: "The social, political and economic responses to these challenges, all heading to a boiling point this decade, will overhaul traditional paradigms."
Here are the 10 megatrends that could shape the next decade, plus their respective winners and losers, according to Bank of America:
BAML's take: "Investors are more focused than ever on global warming's impact on the economy, society, unemployment and migration."
Source: Bank of America Merrill Lynch
7. Demographics
Winners: eCommerce, new consumer
Losers: Bricks & mortar, legacy consumer
BAML's take: "The number of grandparents will outnumber the world's children; every second 5 people enter the EM middle class and Gen Z overtakes Millennials."
Source: Bank of America Merrill Lynch
8. Quantitative failure
Winners: Keynesianism, gold
Losers: Financial assets, Monetarism
BAML's take: "Monetary policy measures are proving less and less effective at boosting corporate and household "animal spirits."
Source: Bank of America Merrill Lynch
9. Recession
Winners: Inflation, real assets, infrastructure
Losers: Growth, credit, deflation
BAML's take: "Record numbers of FMS investors think the global economy is late-cycle, the bond market bubble is set to unwind and populism is likely to be inflationary."
Source: Bank of America Merrill Lynch
10. Peak globalization
Winners: Local markets, real assets
Losers: Global markets
BAML's take: "The end of unrestricted free movement of labor, goods, and capital around the world."