Investment Mega Trends for 2025: Conflict, Energy, and Artificial Intelligence
Global financial consultancy and asset management firm deVere Group has highlighted three investment mega trends that will shape the economic landscape in 2025. These trends are the increase in global conflict, the rise in energy demand, and the transformative impact of artificial intelligence (AI).
The firm anticipates that investors who align their portfolios with these trends could see significant gains despite the growing uncertainty.
In terms of conflict, geopolitical tensions are rising in Europe, the Middle East, and East Asia. deVere Group's CEO, Nigel Green, notes that the global conflict index is at its highest level since World War II, pointing to more than 50 active armed conflicts worldwide. This situation is leading to an increase in defense spending, which is expected to exceed $1 trillion in the U.S. by 2025. Investments are being made in military technology, missile systems, and cybersecurity, offering long-term opportunities for investors in these sectors.
Regarding energy, record levels of consumption are being observed due to economic growth, the electrification of transportation, and the rise of AI. Nuclear energy, in particular, stands out, with aging plants being refurbished and updated. The regulatory challenges faced by new nuclear projects offer significant investment opportunities. Companies in the nuclear sector are expected to experience strong earnings growth. Green also points to a revival in offshore oil and gas exploration activities, highlighting the ongoing dependence on traditional energy sources alongside the growth of renewables.
AI continues to be a key driving force behind change across industries, leading to significant capital expenditures on AI infrastructure. Large players are investing in data centers and cloud capabilities, anticipating substantial revenue growth in this area. Green asserts that AI will be the foundation of future economic expansion, and companies involved in AI infrastructure will lead market gains.
Green advises investors to align themselves with these mega trends to outperform those who merely react to short-term market fluctuations. He emphasizes the importance of strategic positioning in a world shaped by conflict, energy challenges, and AI innovation. deVere Group continues to guide its clients through these complexities by focusing on the mega trends that will define the investment landscape in 2025.