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The first and foremost is linked to the digital transformation and the introduction of new technologies. With 5G, artificial intelligence and cloud computing already in use or about to enter the market, new applications from autonomous driving to remote surgery will be introduced in the coming years. UBS suggests investments in digital data services, technology providers (5G), e-commerce, fintech, healthtech as well as security and safety (delivering on demands for privacy in a digital age).

The second major investment opportunity lies in the emerging paradigm shift in medicine, UBS said. Genetic therapies harbor the potential to revolutionize healthcare and disrupt the biopharma industry: «Such therapies hold out the promise of curing chronic diseases with a single treatment.» UBS expects more acquisitions of the firms that develop genetic therapies in years ahead and predicts the potential for marked capital appreciation.

The third and last of the mega-trends is linked to water scarcity and the mismatch between demand and supply. The forecast for further growth of the global population will likely widen the gap and this will result in huge demand for the products developed by companies involved in water exploration, distribution, and treatment.

  • «Position with sustainability. By shifting toward sustainability-focused investments, we think investors will be better positioned to benefit from what are likely to be the most significant trends over the next decade.»

The decade of transformation will keep investors on their toes. But equally, it provides opportunities to get involved in making change happen, UBS said. With the implementation of United Nations sustainable development goals, banks have been jostling for a position to offer clients tailor-made ESG products.

UBS expects this trend to last and provide investors with opportunities to earn attractive returns: «By replacing traditional with sustainable investments, investors can position their portfolios to participate in the most significant trends over the next decade,» the bank said.