Despite being an optimist, it can be challenging to maintain a positive outlook in a world where negativity and sensationalised online stories dominate the news. Some experts argue that future economic growth will not be able to keep pace with past averages, potentially leading to lower financial market returns and a decline in the standard of living. Additionally, increasing wealth inequality only serves to widen the divide between the wealthy and the disadvantaged, fuelling fears of an impending disaster.
It is easy to fall prey to this pessimistic perspective, especially when experts present complex models and convincing narratives to support their arguments. But what if we underestimate the potential for future global economic growth and innovation?
Memories from the Past
In 2013, Bill Gates highlighted several noteworthy improvements, including more effective efforts to combat polio, a decrease in child mortality and poverty rates, and renewed commitments from wealthy countries to save lives. Similarly, Zack Beauchamp pointed out that 2013 was likely the best year in human history due to decreases in premature death, poverty, and violence, as well as increasing happiness and declining discrimination.
The United Nations reports that more progress has been made in reducing poverty in the last 50 years than in the previous 500 years. The weekly edition of the New York Times contains more information than the average 17th-century individual would have encountered in their entire lifetime. Furthermore, even the most basic smartphones have superior mobile capabilities and access to data compared to what the President of the United States had just 25 and 15 years ago.
Exponential growth can be difficult to forecast, as it allows for improvements to build upon themselves in a way that is similar to compound interest.
A Look Into the Future
In his book “Abundance: The Future is Better Than You Think”. Peter Diamandis shares that we are too sceptical of the potential for future advancements to address the world’s most pressing issues.
According to Diamandis, it is difficult for many people to envision the potential advancements that exponential growth could bring because it is hard to comprehend. He asserts that these significant technological developments, which could solve many of our most pressing problems, may not be as far off as we might think, and could even arrive within the next decades. Diamandis predicts that by the 2030s, investors will have the opportunity to capitalise on major breakthroughs in a variety of fields.
How Changes in The Future Will Affect Investments
It is currently unclear whether any predictions of the future will come to fruition. However, if Diamandis’ and similar forecasts prove true, it could lead to higher living standards globally, an expanding middle class with the ability to purchase products, save, and invest, and the emergence of technologies previously only seen in science fiction.
These advancements could also help lift billions out of poverty, potentially creating new industries, sectors, and companies for investment, and contributing to higher global economic growth as a result of an expanded consumer base.
It is important to recognise that the world is not without its challenges at present, and things may worsen before they improve. Indeed, it is impossible to accurately predict the direction of future economic and technological advancements. However, we can be certain that individuals will continue to strive for personal improvement, innovate, educate themselves, support others, and drive growth in a positive direction.
As investors, it is important to maintain a positive outlook and not let pessimism about the future cloud our judgment. Whilst it is difficult to accurately predict the direction of future economic and technological advancements, we can be certain that people will continue to strive for innovation and growth in every possible way.
This optimism can be especially crucial when considering long-term investments, as these decisions often require a belief in the potential for future growth and success. By keeping an open mind and focusing on the potential for positive developments, investors can position themselves for success in an ever-evolving market.