Dear reader,
"An estimate or forecast of a future situation based on a study of present trends"
The year is nearing an end, with just the last weeks to go it is time to start looking at the next year. This is a year that probably a lot of people want to forget quickly. With restrictions and lock downs people are hoping for a better year to come in 2021. Of course each year has its ups and downs, it is almost impossible to project what is going to happen next. No one could have projected that the world would have gone in lock down and that a virus would take over the entire world.
I am always a bit susceptible about projections. No one truly has a crystal ball and can see what will be happening next for us. That is why I am happy that the definition includes the words estimate and based on present trends. So this week I am going to look at what kind of trends will follow into 2021. My goal is not to say in 2021 that I am right, I could be wrong too. I am an investor and as an investor I want to see what the trends would be so I can profit from them. There are three types of trends, Mega, Macro and Micro. I will be looking at all and seeing what I think will happen in each of these trend types. Also I will look at how you can succeed by following specific trends.
Mega trend:
These trends occur over a longer period of time and they influence all aspects of life. These are trends that have been around and will be affecting our future. These trends can be, global warming, global pollution, population growth and shifting of economic power. These are trends that have been around for a long time and are taking more and more shape in the current economy and global system as we know it. A virus is also a mega trend, it affects nearly every country in the world and it will keep affecting us in the years to come. It has changed the way we do business and work.
Besides the virus there is a more important trend that I have been following. It is the change of super power in the world. The United States Dollar is almost dead, the Federal Reserve is pumping more and more money into the system to keep it a float. But there will be a moment that the Chinese will take over and dominate the world as the superpower. If you read the history books this happened many times. The pendulum shifts from east to west during the centuries. Now it is time to make the shift back from west to east.
Macro trends:
Macro trends tend to look at what can happen the coming decade. In the next ten years a lot can change. Climate change is something that we have been looking at as a mega trend for a long time. But within the time span of the macro trend we can make great changes that will have an impact on us in the next few years to come. Because of the Corona virus there is also a lot of uncertainty about what can happen in the next few years and how it would have an impact on us doing business, traveling and going about in our daily life.
The biggest macro trend is climate change for an investor. With the Green New Deal and more and more people and business making the switch to cleaner energies. More and more investment opportunities are arising as you can profit from the upcoming trend. In electric cars you see a lot of hype and money going. Companies like Tesla are gaining market share and value every year. My projection is that green investments are the way to go for the next decade.
Micro trends:
Micro trends are the most active of all the trends. What was hot yesterday can be gone tomorrow. These trends seem to be developed and stay around for a couple of years. Then something new or maybe an adjusted version will take over the market. An interesting trend at the moment in the Netherlands is to replace meat with vegetarian or vegan alternatives. The trend of becoming healthier and living longer reaches a lot of people in the major cities. The supermarkets are selling more and more products that are either based vegan or vegetarian.
A micro trend I have discovered is that everyone is starting podcasts or radio shows. Because of people staying at home and having more time or no work at all people are creating their own business next to what they are doing or have been doing. Also it is a way for people to stay in touch, you can call with Zoom and have discussion about a subject that you want to talk about. So all this data needs to be sent and saved. Investments in cloud software and video conferencing companies is a great investment since most countries don't have the grip on the Corona virus yet.
Trends and success:
If you are able to understand and see the trends that are happening you are able to gain your success from it. Whether it is a new social media platform rising or a hot investment for the future there are in all areas trends to be found. Whether you are able to profit from it is up to you. Of course you have to do your own research and find out whether it is just a hype or an actual trend. You then have to determine whether the trend is mega, macro or micro. Once you know all the information you are able to act on it and make the trend your success.
Some trends are more important for my success then others. For me I look at investment trends on the long term. Because so many people want to get into the stock market now I am actually holding cash and waiting for a moment when the market slips and I can buy the dip. Also I think the market is way over bought and we are going to head into a recession or depression in the first few months of 2021. Because of the uncertainty you can't see any long term investments that would be good besides gold and silver. Being able to stay out of the market can also be your success.
I do need to state that I am not a financial advisor or I work in financial services. I enjoy investing and enjoy teaching others about it. I have done research into the different sectors that I have mentioned above. Before you start investing and making projections do your own research. My projections could be completely off. There are three sides to a coin, heads, tails and an edge. Stand on the edge and listen to both sides, then you get the most valuable information that you need to make your decision.
Thank you for reading and see you next week.
Franklin, Moments2Success
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