Key takeaways

• Finding leaders of tomorrow – Investors may want to look beyond today’s market leaders to seek diversification and resiliency in their portfolios, uncovering underappreciated assets poised to benefit from mega forces that can potentially drive long-term growth.

• Artificial Intelligence (AI): A picks and shovels approach – Integration across industries
  is driving massive demand for AI’s Infrastructure:  data centers, semiconductors, and raw materials. This buildout, thought to continue through 2030, will require significant infrastructure investment, across semiconductors, energy, and metals like copper. 

• Geopolitics: Tech and supply chains at the center of a global election year –  Geopolitical fragmentation requires an evaluation of overseas dependence and a focus on U.S. reshoring. Shifting supply chains and varied demographics create strategic

Seeking opportunities beyond today’s leaders

We believe investors may want to look beyond today’s market leadership to find underappreciated areas that may be well-positioned to benefit from powerful secular tailwinds, or mega forces, that can drive long-term growth. In the short-term, we believe two mega forces, in particular, have the potential to reshape the global economy and could reach critical inflection points:

• the transformative potential of artificial intelligence (AI) and it’s catalyzation of a historic cycle of capital expenditure; and

• the growing impact of geopolitics on trade and technology amid a wave of elections globally.

In our Thematic 2024 Mid-Year Update, we focus on these two mega forces and highlight where we believe the most compelling opportunities lie. Within AI, we look to the “picks-and-shovels" of this technology amid tremendous demand for hardware, digital infrastructure, and power. Within geopolitics, we look to potential beneficiaries of changing supply chains, including a domestic focus on tech and manufacturing, as well as emerging market up-and-comers.