Beyond the Horizon:
Themes for Multidecade Clients Multidecade themes identify long-term trends that will impact markets and livelihoods over the next few decades. These themes affect how we invest and how we work with clients. They are particularly crucial to our intergenerational clients and our private capital program, where long-term patient capital can outperform more liquid investment options. While our capital markets forecast looks at the medium term (three to seven years), our multidecade themes look beyond that, offering areas of interest and focus 15 years or more.
Generational Themes Decarbonization as an intergenerational investment opportunity
achine Learning and Artificial M Intelligence as a potential Third Industrial Revolution
A Biotech Revolution moving from potential to kinetic energy
Explosive Growth continuing in the Sun Belt
Decarbonization Decarbonization is the process of taking traditional carbon-based processes and either replacing them with non-carbon-based processes or capturing and mitigating the carbon in existing processes. When it comes to decarbonization, several sub-themes exist with potential to disrupt and impact companies: reimagined mobility; renewable and clean energy; clean hydrogen and new fuels; and nuclear fusion. Though decarbonization has been a politically sensitive area of investing, the opportunity for investment in decarbonization over the next few decades is in the trillions, perhaps even tens of trillions, irrespective of politics.
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202 2 C A PI TA L M A R K E T S F O R EC A S T
Machine Learning and Artificial Intelligence Machine learning and artificial intelligence are two related concepts that often merge. Machine learning is the ability for machines to learn from available data. With the advent of big data, machines that can improve their information analyses have led to some rapid economic advances. Artificial intelligence is a broader category, generally defined as the pursuit of machines developing the qualities of the human mind. Some of these qualities include language and pattern recognition and solving complex problems. Together, machine learning and artificial intelligence have the potential to harken a third industrial revolution that will transform our economy over the next generation.
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