According to Capital Group, sponsor of American Funds, the following are predictions long-term investors should take into consideration.
Healthcare – Accelerating innovations from devices monitoring our blood or remotely checking vitals while we sleep to earlier diagnostic detection for disease. Innovative drugs as we’ve seen with mRNA.
Cancer Cure getting closer – Potential cell therapy cures. Capital Group believes we are in a “renaissance for medical R&D” (research & development).
Electronic Payments – They believe digital payments will be the norm. Emerging market countries are ahead of us. Many of their consumers don’t have bank accounts so payments are made using mobile phones.
Semiconductors – There is a shortage of them right now. It is inhibiting auto production and delaying many devices that the public is asking for. Capital Group believes devices will increase the need for semiconductors. Examples: phones, tablets, automobiles, entertainment systems, appliances, wearables, etc.
Wearable Technology – Devices that offer real-time translation such as earbuds or glasses which translate voices to different languages. Augmented reality and improved machine learning will enhance these products.
Digital Entertainment – COVID-19 accelerated the public’s comfort with streaming. Of all content available to consume, one-third is viewed by streaming. Capital Group anticipates this will increase to 80%.
Autonomous Vehicles – Capital Group envisions fleets of electric vehicles available to the public. They foresee a time in which a personal vehicle would be a luxury. Hydrogen engines will be used by commercial airlines as we move away from fossil fuels.
Green Machines – Capital Group had a fun opening to this idea: “Ladies and gentlemen, start your batteries.” Think this category is self-explanatory.
Renewable Energy – We are starting to transition to renewable energy. Costs will decline and productivity and efficiency rise. The European Union has a target of 32% from renewable energy by 2030.