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Investing Megatrends: New Technology

From email, to social media, to online banking, to inventory management, to healthcare—new technology pervades almost every aspect of our personal and professional lives. That said, new technology isn’t just about new gadgets, and the data deluge isn’t just about more and more information. These megatrends are about new ways to transfer knowledge, drive innovation and productivity, and transform how we do business. Time horizons and costs have been compressed, making it easier for companies to experiment with new ideas. Information that was previously inaccessible is now, literally, at consumers’ fingertips.

The economic impact of all of this has been and will continue to be enormous. We’ve seen a lot of change already; industries have been created and business models have been disrupted. But there is significantly more to come. Understanding the implications of the data deluge and figuring out how social and economic models will evolve from here, is the key to finding great investment opportunities.

This transformative megatrend provides significant growth opportunities for companies participating in the collection, analysis, transmission and storage of increasing amounts of data. The investment opportunity is driven not only by the growth of data, but also by its increasing complexity and the need of both consumers and businesses to access and use it faster.

A global equity portfolio may provide exposure to firms creating or using new technology to expand profitable businesses around the world. By investing in high quality overseas companies poised to benefit from the structural growth trends underpinned by the growing data deluge, investors can tap into this long-term potential opportunity.

Read more about the data deluge. Read about another Investing Megatrend shaping global investing: Mass Affluence.

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