Artemis’ Paras Anand has outlined the key investment themes predicted to shape returns in 2024. Investment potentials primarily lie in the fields of public infrastructure, emerging markets, AI, and the UK’s potential recovery. This change of focus marks a significant shift away from the Silicon Valley trends that dominated the decade following the Global Financial Crisis. Here, disruptive, tech-enabled, capital-light businesses attracted substantial funding from private equity, venture capital, and public markets.
- Public Infrastructure and AI represent significant investment areas, especially in the wake of global changes in capital cycles.
- Emerging markets and the UK’s potential recovery present opportunities for substantial returns on investment in 2024.
These marked changes in investment trends are a result of the evolution of global financial strategies post the financial crisis. Over the past decade, the modus operandi was orientated towards businesses that applied technology disruptively and operated with a capital-light business model. Silicon Valley was the hotspot, attracting billion-dollar investments from private equity firms and venture capitalists to nurture these start-ups and later from public markets to sustain them.
However, Anand predicts that the future capital cycle will be markedly different, hence the need for investors to shift their focus to sectors like Public Infrastructure and AI. The rise in public infrastructure projects worldwide offers opportunities for investments with promising returns. In addition, AI continues to grow, disrupting various sectors and creating new investment avenues.
Furthermore, Anand’s forecast also highlights the potential that lies within emerging markets and the UK. These regions have undergone significant transformations and are expected to recover substantially in the coming years, making them fertile ground for financiers seeking high returns.
Overall, while the tech-oriented trends of the past decade have reshaped the global investment landscape, the changing capital cycle calls for a shift in focus and strategy. Through adapting to these changes and exploring these new key investment themes, investors can position themselves for substantial returns in 2024 and beyond.
