Old Mutual believes that virtual reality is a great opportunity for investors. As a result, the fund manager plans to launch a fund in 2022 focused on artificial intelligence and other mainstream trends.
“This fund will have global exposure and will capture all the trends,” Old Mutual Investment Group chief investment officer Hywel George said during a webinar.
Join heated discussions with the Moneyweb community and get full access to our market indicators and data tools while supporting quality journalism.
R63/month or R630/year
You can cancel anytime.
He identified the following technology trends as significant: blockchain, cybersecurity, hydrogen, longevity, metaverse, quantum computing, robotics, smart cities, the Internet of things, and space exploration, including asteroid mining.
He said Old Mutual was waiting for the investor euphoria to dissipate before embracing these trends at reasonable prices. He thought this opportunity would present itself in the first half of next year.
He said the metaverse activity was ‘mind blowing’ and that investors were pouring money into digital real estate and non-fungible tokens.
Nike is moving towards that, and they are one example among many. This digital world is happening fast and the metaverse will be massive next year. ”
He said the world was experiencing the onset of the metaverse and the crypto revolutions. Governments were unlikely to curtail the explosive growth of cryptocurrencies, as George said the opportunity for a state shutdown of this area had likely passed.
He said that blockchain would revolutionize the world, while space exploration and asteroid mining offer the opportunity to secure rare earth elements and green metals.
He added that investors should monitor hydrogen as an alternative to battery technology in large vehicles.
Five key trends for 2022
George identified five key investment trends for 2022:
- China will accelerate its quest for global dominance. “China’s development will be one of the defining trends of our era,” George said. However, he suggested that investors avoid China. “China is on the verge of being invertible,” he said.
- Investors will see an acceleration in exponential technological progress. He recommended that investors expose themselves to the dominant tech themes.
- The evolution of crypto will accelerate, but crypto options will diminish. George advised investors to back winners of cryptocurrencies like ethereum.
- Support for ESG and green technology will accelerate. He suggested that investors invest their money in green metals and decarbonization.
- Investors will face higher inflation and interest rates. As a result, George advised investors to protect their portfolios by buying gold, silver, ether, and real assets, such as infrastructure and forestry.
Justin Brown is a reporter for Citywire, providing knowledge and information for professional investors globally.
This article first appeared on Citywire South Africa hereand republished with permission.