When I am not making games or building a solar farm, I am quite into investing on the stock market. I am NOT a day trader, but over the years I have built up enough to invest that it does require me to constantly keep an eye on stuff. I also like reading about the world, and technology, and politics, so it fits in nicely. As a result I spend a lot of time thinking about where to invest.
Investing is super hard, because it involves keeping emotions in check (hard), being objective (hard) and for best results, being happy for absolutely everyone to tell you that you are wrong (I find that quite easy tbh). It also involves a lot of risk, and you have to be ok with all of that. Plus it involves a lot of checking numbers, and being objective, and not making panicked decisions.
Because I think that short term swing/momentum/day trading is more likely to result in losses than gains, I focus on picking shares that will give me a decent return over the next 1-5 years. I have found this is the approach that works best for me. Its certainly not as EXCITING as day trading, but I actually want results, not a sugar rush. So I find myself thinking hard about what the future may bring. Ultimately I am a value investor: I am buying stocks where I think the underlying company will be very profitable in the future. I DO hold some dividend stocks and bonds, but most of my picks are for stock-price-growth, where I assess that a company will have rising profits in the next few years, and I will sell once the stock price catches up to my point of view.
Individual companies can be very good investments, regardless what the people selling funds and generic investment advice tell you. If its obvious that 50 of the stocks in the FTSE100 are rubbish, why would you want to own ANY of them? If your funds are limited, indexes and funds might make sense, but when you are able to pick 50-100 stocks, its worth taking the time to pick winners.
So anyway, with all that in mind, what am I currently thinking about when it comes to upcoming events and themes that might influence investment? I have a bunch of ideas:
- The decline of the USA : This is quite a big one, and probably very triggering for people who live there, but I think USA in 2024 is the UK in 1930s-1940s. A big global superpower that has not yet realized that it is screwed, despite all the signs being there. The US has incredibly tribal politics, huge social-division, bad levels of skills/education, bad infrastructure, a colossal debt problem, and a bad global image. Sure, the $ is a popular global currency for now, but in 5,10,15 years? I think China is clearly overtaking the US in everything that matters. I also think the US is so focused on its own awesomeness that they will not manage the decline well. I am hugely over-invested in US stocks but will be diversifying out of there.
- Clean Tech Revolution: The entire planet will embrace electric cars, solar & wind power, battery storage and heat pumps. Nuclear Fusion is too late, too pricey and too concentrated. There is no stopping this transition now. Along the same lines we will likely see a global transition away from meat consumption towards vegetarian or vegan diets. Thats a movement that is just too big and especially too popular with the young for it to be stopped.
- Rise of Asia: I mostly focus on China. The predominant view in western media is filtered through frankly xenophobic and tribal hatred of China in the US media. But the Chinese are starting to lead in tech, science, infrastructure, and geopolitical influence as well as manufacturing. They even have their ow space station, something the USA cannot afford. I do not expect war with Taiwan, but I expect savvy Chinese leaders to rattle just enough sabers to keep bankrupting the USA with its ridiculous military budget
- New Space Race: Not just spacex, but a whole range of new space startups is revolutionizing our capabilities in space. Starlink is the first tangible benefit but there will be more. Space Tourism will be one part, but zero-g manufacturing may well become a thing for some specialist pieces of technology. I fully expect all major cabled telecoms links to be replaced by satellite networks soon. Its just so much simpler.
- Fall of Russia / Chaos in Europe: Russia will have a messy transition when Putin dies. The country is not in a good state, but cannot be allowed to collapse into chaos because it has nukes. I can imagine a world where Europe steps in to handle the transition, in a similar way to the handling of eastern-european ex-soviet countries after the USSR collapsed. It will be messy and awful. I do not expect the UK to rejoin the EU, so we may escape some of the costs. It will be tough
- Climate Chaos: Insurance companies are likely screwed. We have been lucky so far but one day a big hurricane or flood or other climate event will wreck a big famous city. Might be New York, might be London. Who knows. Impact will be extreme. I will not buy insurance company stocks. Also worsening weather will destroy so much food production. I sometimes speculate on commodity prices to play this, and may do more. Global food price rises may destroy fast food chains, when people can barely afford the ingredients and cut back on dining out or takeaway food out of necessity.
Thats my list for now. I also have a speculative investment in quantum computing, just in case it really becomes a thing. I also expect AI and robotics to be big, so hold a lot of AI/Chip/Robotics stocks. Those are quite trendy though, so those investment ideas are less contrarian.