Artemis’ Paras Anand has identified key investment themes that he says will shape returns in 2024. In the period following the Global Financial Crisis, disruption by capital-light, tech-enabled businesses and the flow of billions of dollars from private equity, venture capital, and ultimately public markets towards Silicon Valley were key factors in shaping investments. However, the capital cycle is expected to look very different moving forward.
- Growth in public infrastructure and AI are revealed as two promising sectors for investment in 2024.
- There are also investment opportunities for a recovery in the UK and emerging markets.
- The accommodative interest rates and strong capital growth that previously led towards Silicon Valley may not prevail as the climate is changing.
- Disruptors, capital-light, tech-enabled businesses had attracted massive investments from private equity and venture capital, redirecting these funds away from public markets.
Anand has not provided a detailed overview of the new themes expected to dominate the capital cycle. However, his mention of public infrastructure and artificial intelligence indicates possible shifts towards sectors that have shown promise during the pandemic. Similarly, his mention of recovery opportunities in the UK and emerging markets suggests that he believes these markets may offer good ‘hunting grounds’ for investors in the next year.
Given the unprecedented events of the past two years and their impacts on world economies and markets, these themes present areas of growth that could reap significant returns from early investment. As always, investors are advised to conduct their own research and consider their investment goals and risk tolerance before making investment decisions.
The information contained in this summary is for general information purposes only, and should not be construed as investment advice or as a recommendation to buy or sell investments.
