The world in 2030 may seem a long way away, but at Capital Group we spend a lot of time thinking about the distant future.
“Imagining life in 2030 is not a hypothetical for me,” notes Capital Group vice chairman Rob Lovelace, a sentiment echoed by many of his colleagues. “In the portfolios that I manage, my average holding period is about eight years, so I’m living that approach to investing.”
We asked our investment team to look in their crystal balls to envision how life may change by the end of the decade. Here are seven portfolio managers’ perspectives on the world in 2030, and how these shifting trends influence their investment decisions.
1. COVID could be this generation’s Pearl Harbor — Martin Romo
Ten years from now I think we will look back on COVID as our generation’s “Pearl Harbor moment” — a period when extreme adversity spurs innovation and behavioral changes to help address some of the era’s biggest problems. When Pearl Harbor happened, the U.S. artillery was 75% horse drawn. Let me say that again: In 1941, three quarters of the U.S. artillery depended on horses. Yet by the end of the war they had entered the atomic age. That incredible transformation sparked a period of innovation and growth in the U.S. economy that lasted for decades.
COVID could be the trigger that spurs us to tackle critical issues in the U.S. over the next decade, such as the cost of health care, education and housing. We’ve already seen an almost magically rapid development of COVID vaccines at a speed few thought possible. And we’re doing things in our daily lives we never imagined would happen this quickly.
In 2030 we may be living, working, studying and playing in a radically new world. Our lives could be better, richer, healthier, cheaper and profoundly more digital, virtual and data centric. Many of the technologies already exist, but I believe there's still so much untapped potential for innovative companies to think bigger and use them in ways that solve societal problems.