Quick Bite | The key investment themes of the decade

Investing according to a theme is common practice, and some do it very well and some do it badly. In each case, a particular asset class, sector, or region captivated investors for an extended period, driving returns and outperforming the rest of the market. These themes are often the product of a confluence of factors, including the macroeconomic environment, geopolitics, monetary policy, or other structural shifts like technological disruption. An example of thematic investing might be, “The developed world population is rapidly ageing. With age comes increased demand for healthcare. Let’s buy a diversified portfolio of healthcare-related stocks.”

In the chart below are the investment themes that have defined each decade from the ‘Nifty Fifty’ to the tech giants of the 2010s.

Source: Visual Capitalist



Disclaimer: Clime Asset Management Pty Limited | AFSL 221146 | ABN 72 098 420 770.  The information provided in this post is intended for general use only. The information presented does not take into account the investment objectives, financial situation and advisory needs of any particular person, nor does the information provided constitute investment advice. Under no circumstances should investments be based solely on the information contained therein. Please consider the relevant disclosure document/s before investing in one of our products. Investment in securities and other financial products involves risk. An investment in a financial product may have the potential for capital growth and income but may also carry the risk that the total return on the investment may be less than the amount contributed directly by the investor. Investors risk losing some or all of their capital invested. Past performance of financial products is not a reliable indicator of future performance or returns.