New Gen: The most profitable investment ideas of 2021
With 2021 coming to a close, we take a look towards the ideas that have performed the best in terms of investment. It should be noted that the profitability of each item corresponds to the average returns of each of the investment vehicles that make up the New Gen portfolio.
Circular economy as a strategy for sustainability
Learn about the benefits of the circular economy and why it is ideal to invest in the creation of a sustainable and eco-friendly economic system.
Despite volatility, cryptocurrencies continue to provide much higher returns than traditional assets. Ethereum 399% and Bitcoin 60%.
The most famous cryptocurrency is Bitcoin. This cryptocurrency is currently attributed with characteristics similar to those of money and functions similar to digital “gold”. In addition, it reached a capitalization of more than 1 trillion dollars during 2021. Meanwhile, Ether, the currency of the Ethereum network, is the second largest cryptocurrency with the most tokens issued. Its applications range from finance, to intellectual property, art and video games.
- New technologies
Among the rest of the best positioned ideas, we observe a clear dominance of those related to new technologies, such as the 5G network, Big Data and Artificial Intelligence, each with a profitability of 43%, 40% and 32% respectively. And the fact is that they undoubtedly represent transformative forces whose impact is perceptible by all segments of society, business and the economy and serving industries as diverse as: health, automotive, finance, education, communications and transportation.
- Circular economy
The circular economy is a form of production and consumption that extends beyond the traditional “3Rs” and adds sharing, renting, repairing and renewing as many times as necessary. To this end, it takes into account all the processes involved in the production of a product, with the aim of eliminating waste and pollution, keeping products and materials in use and regenerating natural systems.
This economic model is based on renewable energies and materials, and seeks to optimize the power of digital technologies to the maximum. Its profitability reached 30% in 2021.
- Smart Cities
Smart Cities are the cities of the future. They incorporate Information and Communication Technologies (ICT) and use them as tools for urban management. The aim of this type of development is to transform traditional cities into digitized metropolises that optimize infrastructure and services such as intelligent buildings, health, education, energy, housing, mobility and security. They also seek to reduce waste generation, CO2 emissions and environmental impact. They have a profitability of 28 percent.
Pets are nowadays considered as another member of the family and therefore are the destination of part of the household income. It is estimated that the pet care industry will grow 6% annually until 2025, reaching a turnover of more than $270 billion worldwide, according to a report by ProShares.
According to a study, 56% of the world’s population has at least one pet at home. The industry reached a profitability of 26% during 2021.
Robotics achieved a 26% profitability last year, making it one of the most important and promising technologies of our times. Robots can perform tasks in a very precise and repetitive manner, and at a higher speed than people, which translates into more efficient production, as well as allowing humans to avoid dangerous jobs, thus reducing occupational hazards.
The global robotics market is expected to grow at a rate of 10% by 2025.
- Internet of Things (IoT)
The Internet of Things has a profitability of 25% and represents the set of everyday objects that, through the Internet, are able to capture, send data and share information with each other. Examples include smartphones, voice assistants such as Siri or Alexa, alarm systems and wearables.
By 2030 there will already be more than 25 billion devices connected to the internet of things worldwide, which is approximately 3 devices per inhabitant of the planet.
If you would like to invest in some of the ideas New Gen has for you, please consult with an advisor.
Is technology a profitable investment?
The digital population growth is a condition that will define the world, not only in business, but in politics and investment. The changes in the generations and the access that each of these had to technology defines the financial scenario and the form that the growth dynamics will take on a global level.
Bioeconomy, a strategy for the future
The bioeconomy is a model where biotechnology contributes significantly to economic production and, combined with the circular economy, represents an economically and environmentally sustainable model.