Never mind Blockchain (though unique identification is a good thing) or spurious articles about how Millennials won’t work and can’t work (not in my experience), the next big thing is not them. Nor it is landing rockets back on earth and reusing them (love you Mr Musk) or the biggest factory on earth (Mr Musk again) or sexy electric cars with gull wing doors (Mr Musk again). I confess I have a bit of a thing for Mr Musk.
The big news (as always) is where is the money going, and in a similar vein, where is it coming from?
The really, really big news is that right beneath our feet two mahoosive things have started to happen but nobody is really talking about them.
The first big thing is the way the money is moving away from fossil fuels. So our favourite heating and cooking (and later moving) fuels are going to be no longer much sooner than anyone thought.
Take Waltham Forest, a borough in north-east London best known for hosting part of the 2012 Olympics, made history in 2016 when its pension fund for local council workers decided to pull out of fossil fuels. So no more of the £735m fund they manage will be invested in stuff stolen from the earth. The London Borough of Southwark has just announced its intention to do the same. They join a global movement of pension funds away from carbon intensive industries.
Now the interesting question is why? It’s not because they want to save the planet, it’s because of hard headed economic risk management. Investment in firms that make products that are bad for us and the world we live on don’t make economic sense.
“Any fund that is not (having) internal discussions (about fossil fuel exposure) is not doing its fiduciary duty”
Tom Sanzillo, Institute for Energy Economic and Financial Analysis
In fact the Norwegian Oil Fund (time to change the name guys), the world’s largest sovereign fund, made better gains from not investing in oil and coal related firms in 2016. So we can finally say it. Fossil fuels are in decline, whether we like it or not. I like it.
The other massive thing happening is who is starting to guide where the wealth created and sitting in these massive funds goes, now that the pale and stale males of old have started to fall from their (often) inherited positions of power and influence. All of this change is part of the trajectory of the biggest transfer of wealth in human history we have ever seen. It has already started. Over the next 35 years an unprecedented $58.7 trillion dollars of wealth transfers to women and millennials. Women will inherit 70% of this wealth and the young the rest.
For example, by 2030, two thirds of the wealth in the United States will be in women’s hands. Lastly, women and millennials factor a company’s social and environmental impact into their investing decisions at a dramatically higher rate than men, it’s a fact. This confluence of factors will drive change and growth in all sectors, but most obviously and quickly the energy sector. Come be part of this exciting journey.
Take a look at our website – http://www.iotsystemsgroup.com/