Worldwide disruption to bring future investment opportunities
Since 2020 we have all witnessed how disruptive COVID has been. Especially for future investments.
Whilst the pandemic itself has been one of the most visual forms of disruption, there have been numerous other disruptions occurring, some invisible.
For instance, financial disruption has occurred with both the dilution of currency with the printing of money and the reduction of our interest rates to zero. The result of this low cost of borrowing has seen the reduction in the returns paid for commercial property investments, in fact, lower than we have ever seen.
And then there’s the political disruption. It’s been significant here, particularly with freedom rallies, but the United States has seen its biggest threat to democracy yet with the storming of their capital to disrupt an election on January 6, 2021. And it very nearly worked!
And then of course, the big one, climate disruption. Climate warming potentially will disrupt everything from the food we can grow, to displacement of people through rising sea levels, droughts, floods, and general liveability. Added to this, as a world we have agreed to combat the reduction of emissions which can only intensify change about to happen.
I have had a chance to read a bit over the break and I have been impressed with the author, Tony Seba. Tony writes about disruption and what we can expect. Tony has been around for a long time, and many of his predictions have been on-the-money. He predicts that we are entering the most disruptive period we have ever seen.
His message is that not only are things being disrupted but are “converging” and the result will be a massive change to the way we currently live.
The question could now be, what do we do, now, to invest in this new disruptive world?
Tony expects change to occur quickly as well. I suspect that change is similar to the speed of change that COVID has shown us already, such as the boom in work-from-home causing adverse effects on CBD offices and a boom in industrial real estate. In addition, the flow on effects on world shipping congestion and a surge in container storage.
Over the next few weeks and months, we are going to start exploring areas for future investments. Tony Seba has highlighted electrification of transport, online ordering, sustainable power, and food production as areas to watch. And it is this where it starts to affect the way we use property.
In the meantime, Investors and business owners should see one Tony’s presentations so, as we can together, identify what we see are upcoming opportunities and threats to prepare, embrace, and assist in prospering in this “interesting” time.
To me, what he discusses makes a lot of sense, and because he has been around for a long time discussing these issues, he has been tested against these previous predictions. In other words, I think we can be confident about his topics on future investments.
His presentations is here and I hope will predicate a few ideas and suggestions for us to embrace with our investing from this time on.