Economy

Credit Suisse updates its Supertrends for long-term investments amid Covid-19

Hemani Sheth Mumbai | Updated on May 06, 2020 Published on May 06, 2020

Global wealth management company Credit Suisse has recently published its annual update to the Supertrends, its framework for long-term thematic equity investments in focusing on evolving investment trends amid Covid-19.

The Supertrends which were first introduced in 2017 have updated taking into account how the Covid-19 pandemic has upended the global economy.

“Our normal way of life has ground to a halt because of the coronavirus pandemic. This crisis is challenging existing systems and structures, sowing the seeds for further change ahead as we uncover limitations in how we learn, work and live. Our Supertrends continue to evolve with the changing world around us, and we believe that they remain compelling investment themes for today and the future,” said Michael Strobaek, Global CIO, Credit Suisse.

According to the report, the pandemic has reiterated the importance of the core five long-term investment trends while adding a sixth trend on climate change.

“Climate change – Decarbonizing the economy” trend is based on the investment case for companies that are involved with the transition to a less carbon-intensive world economy. The key areas of focus within this trend are carbon-free electricity production, transportation, oil and gas transition pioneers, and agriculture/food production.

Credit Suisse’s “Anxious societies – Inclusive capitalism” trend “reflects the fact that popular discontent is now focusing more clearly on issues at home, in particular inequalities, rather than on perceived outside threats and a move toward protectionism.”

According to the report, companies must understand from the COVID-19 pandemic that the real emerging threats to the economy are global and will require multilateral cooperation, along with individual protection.

The “Silver economy – Investing for population ageing” trend focuses on the ageing population who are likely to continue driving drive business opportunities and investment performance for future years.

“In particular, population ageing in emerging markets (EMs) will unfold at a speed not yet realized by most,” the report said.

The “Infrastructure – Closing the gap” trends focus on infrastructure spending that according to the organization “remains on the verge of a boom phase.”

“There are gaps everywhere as old economies struggle to address both existing as well as new needs, including a drive towards greater sustainability,” the report said.

“At the same time, new economies continue to urbanize at a fast pace. The expectation of lower, and sometimes even negative, interest rates for an extended period should provide the right incentive for investment,” it further said.

The trends also focus on the impact of technological innovations. The “Technology at the service of humans” trend talks about the innovation as well as the challenges uncovered by the Covid-19 crisis. The crisis had made technology a “compelling sector” for investors, it said.

The pandemic has put health and responsible consumption at the top of millennials’ agenda, the report said. According to the “Millennials’ values” trend, sustainability is one of the key themes.

“With health also at the top of the Millennials’ agenda, there is a growing demand for healthy, sustainable food: the planetary diet. Hence, along with the transition to a circular economy, we have incorporated sustainable food into this investment topic,” it said.

Published on May 06, 2020

A letter from the Editor


Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.