Investment megatrends for 2025: conflict, energy, AI

The deVere Group, a global financial advisory and asset management firm, has highlighted three investment megatrends expected to shape the economic landscape in 2025. These trends are the rise in global conflict, the surge in energy demand, and the transformative impact of artificial intelligence (AI).

The firm predicts that investors who adapt their portfolios to these trends could see substantial gains despite a climate of increased uncertainty.

In the area of conflict, geopolitical tensions are intensifying, affecting Europe, the Middle East, and East Asia. Nigel Green, CEO of deVere Group, notes the global conflict index is at its highest since World War II, signaling over 50 active armed conflicts worldwide. This situation is leading to increased defense spending, with the United States expected to surpass $1 trillion in 2025. Investments are pouring into military technology, missile systems, and cybersecurity, offering long-term opportunities for investors in these sectors.

Regarding energy, record levels of consumption are being driven by economic growth, the electrification of transportation, and the rise of AI. Nuclear energy is particularly noteworthy, with legacy plants undergoing refurbishments and upgrades. These developments present significant investment opportunities as new nuclear projects encounter regulatory hurdles. Companies in the nuclear sector are anticipated to experience strong earnings growth. Green also points out the resurgence in offshore oil and gas exploration, indicating a continued reliance on traditional energy sources alongside the growth of renewables.

AI continues to be a key driver of change across industries, prompting substantial capital expenditures in AI infrastructure. Major players are investing in data centers and cloud capabilities, with significant revenue growth expected in this domain. Green asserts that AI is foundational to future economic expansion and companies involved in AI infrastructure will lead market gains.

Green advises investors to align with these megatrends to outperform those responding merely to short-term market fluctuations. He emphasizes the importance of strategic positioning in a world marked by conflict, energy challenges, and AI innovation. The deVere Group remains committed to guiding clients through these complexities, with a focus on the megatrends poised to define the investment landscape in 2025.

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Source: Investing.com