Global megatrends: Emerging drivers of investment risk and return

At Inflection Point Capital Management, we believe that a series of powerful, secular global megatrends will have profound impacts on company competitiveness and financial performance over the next ten to twenty years. Investors are going to need entirely new ways of thinking to fully understand changing parameters of portfolio risk and to develop stock ideas that tap into emerging areas of opportunity.

Few if any of the secular global megatrends we follow will affect investors more than the growing scarcity and declining quality of water. Water issues are already affecting companies’ business models, supply chains, and competitiveness. Leading investors are beginning to pay attention, but the devil lies in the details: sector and company-specific risks can vary dramatically, and investors need to know where to place their bets.