“Your portfolio is short this story,” Oliver cautioned. It also includes investing in carbon allowances and carbon markets. This includes equity capture via transitioning companies or high-demand metals for electrification. Those solutions present investors with a number of ways to capture the major economic shift towards net zero. “The real capital moves towards real solutions with real economic return” Oliver explained. It’s a monumental shift that the KraneShares climate ETF suite is positioned to capture and capitalize on. Of that, Oliver explains that $130 trillion funnels into the energy transition specifically. Around $250 trillion will need to be invested to meet 2050 net zero goals according to McKinsey estimates. The shifting of economies and industries to decarbonize will take an enormous sum of money. “The commitments are made, the money is in flow, and we are seeing the largest capital cycle in history.” “Regardless of your politics, regardless of your views on climate, on ESG, we are decarbonizing the global economy,” Oliver said. We’ve seen this trend before.Decarbonization is “a trend that is bigger than any macro megatrend that we’ve seen to date,” explained Luke Oliver, head of climate investments at KraneShares, in a recent video. If they miss major trends, they will suffer, and sometimes fatally. Companies should assign teams to track trends and assess the impact they will have on their products and services.
Companies should prepare for the macro trends identified above. All of the above business-technology trends will happen to some degree, but many will be slower to materialize than the pundits promise. The macro shift to digital will be characterized by widespread automation, which is the major takeaway from pundit and otherwise inspired forecasters. Disruptive trends are more challenging to identify and never completely right – which is fine. But wars cause setbacks.īusiness trends are unfolding today that enable “safe” business-technology trends. As the world moves to EVs, alternative energy will become even more essential. Over the next five years, everyone will get it. Regardless of the political nonsense that surrounds the sector, as profits continue to grow from the development and application of “green” technology, the politics will quiet down: “That’s gold, Jerry, gold.” Bania gets it. (if you’ve already forgotten about the Haugen Papers, you can blame The Metaverse: it worked.)Īn enormous renewable energy business model is already unfolding. Up till this point, the major outcome of The Metaverse discussion has been to distract us from Meta’s (Facebook’s) larger Instagram problems, which remain unsettling to put it mildly. Pieces of this world will emerge over the next few years, as more and more exciting digital ideas unfold alongside. “It will create an entire ecosystem for developers, apps, ads, and new digital innovations.” Absolutely, so long as there’s the money to pay them. Will “it will be digitally focused, and potentially involves entertainment, social connection, work productivity, and behavior modification at scale”? Probably.
MACRO TREND FREE
Do we “expect the metaverse to be immersive, ubiquitous, and free to access?” Unlikely it will be free. There’s still tons of uncertainty about how it will actually work, what the business models will look like, who the vendors will be and the adoption trajectory. It will develop over time as the major players define the competitive space, and the enabling technology develops. Yes, it’s a fascinating description of a future, immersive digital world, but it’s still in the imaginative stage. The Shiftall Megane X virtual reality headphones and mutalk microphone for metaverse experiences. Just wait until the millennials (and especially the Zippies) inherit boomer money! Or $300,000,000 for a single piece by Willem de Kooning? If you doubt the value of NFTs, look at the 10 most expensive contemporary pieces of art. 7 was sold in 2021 at Sotheby’s for $82.5M). Never forget that critics of modern abstract art are always screaming about value: would you pay $82,500,000 for a single piece of modern art? ( Rothko’s “No. But if that happens, governments and the banks that influence them so profoundly will react aggressively to regulate and tax cryptocurrency transactions. A number of large companies are already accepting Bitcoin payments.” Many more will be required for crypto to become the King of anything. As suggested, “it’s been predicted that in 2022, cryptocurrency will become more widely accepted as a payment source. The response to this trend is “maybe.” It all depends on acceptance at the corporate level (the government level too).
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