New dawn: Thematic Investing
With Thematic Investing becoming an emerging term in the investment landscape, Eugene Botha, Deputy Chief Investment Officer at Momentum Investments joins CNBC Africa for more.
Mon, 08 May 2023 15:52:46 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- Thematic investing gained popularity post the 2008 financial crisis, moving away from traditional methods to focus on expected future changes.
- Investors are encouraged to identify mega trends shaping the future and invest in themes like technological innovations, climate change, and societal shifts.
- Thematic investing presents both high risk and high return potential, emphasizing the importance of a long-term investment horizon and strategic macroeconomic analysis.
Thematic Investing has emerged as a strategic approach in the investment landscape, offering a fresh perspective on traditional investment methods. Eugene Boetha, Deputy Chief Investment Officer at Momentum Investments, recently shared insights on the key differentiators and the growing popularity of thematic investing. Boetha highlighted that thematic investing gained traction post the 2008 global financial crisis, as investors shifted focus from traditional methods that relied on historical data to predictions based on expected future changes. This shift was driven by the complexity of forecasting future events amidst market disruptions and anomalies. By analyzing expected changes in the future, thematic investing provides a complementary approach to classic investment management, capitalizing on emerging opportunities and shaping future developments.
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