We are in 2040, how do you see the world around us?
I see two major trends arising by 2040:
- the fast rise of regulations. In 2040 we will live in a world highly regulated. Putting my ESG hat on, I think regulators will impact on mission, production principles, supply chain management. We are heading to a world with more positive impact, where long term sustainability will influence all projects.
- The second trend that will, I believe significantly amplify by 2040 is surveillance. We will live in a big brother atmosphere where our actions and movements are tracked for business as well governmental purposes. The trend may be perfectly well intended (more security, advanced technology, more freedom in information), but nevertheless that will impact our privacy, and freedoms.
How will the financial markets have evolved?
I think the development of artificial intelligence (AI) and the meta verse will play a very significant role in 2040. Machine learning will necessarily impact equity and fixed income markets. Lots of the work would be done by machine learning technologies.
The search for alpha will increase the move towards more inefficient markets. At the core asset management will remain core to savings but how those are delivered will be drastically different.