Petrol cars will be completely phased out and most cars will be driverless. Most people except those in rural areas and the wealthy won’t own their own car. Instead, we will pay an annual membership to a company car sharing company that will give us access to cars whenever you need.
COVID-19 has forced us to change the way we work. Companies and governments have been forced to set up structures that allow people to work off-site. In 2040, most people will work remotely, whether at home or in specially designed business hubs scattered through cities and towns. In addition, most companies will employ people to fulfil tasks or projects, rather than in full-time roles.
Artificial intelligence and machine learning are expected to be the next big thing. This could even rival the industrial revolution. Lawyers will have computers researching their cases for them; restaurants will be able to predict what their customers will order; houses will be built in factories more than they are now; and matching employees and tasks will be easier to do.
Why thinking about the future when investing is important
There are two parts to it.
Firstly, most of the major changes over time aren’t due to major breakthroughs. They are generally due to small, constant changes over time. Computer processing speed for example has doubled every year since 1975. The same goes with investing. Sure you can hold out hope that you will receive a big lump sum or inheritance before you retire or that one big bet on cryptocurrency will pay off. However, a much better way is to invest regularly and take advantage of the benefits of compounding.
The second part is to consider the future when investing. There has recently been a few new index funds come onto the market that allow you to invest in different industries. This lets you invest in areas such as artificial intelligence, clean energy, cloud computing and healthcare.
I wouldn’t recommend putting all your savings into these emerging industries due to the increased risk. However, it is likely that investments in forward looking industries will perform well over the next 10 or 20 years. It is worth considering some of them in your portfolio.
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