The Curiosity Dividend
Here are some valuable insights for the next few decades. I hope you find them useful to make sound financial decisions.
You are likely to live longer.
Your lifestyle inflation will be way higher than normal inflation.
We are in a low return world overall.
Real Returns = Nominal Returns (the headline numbers you hear) – Inflation = negative in case of debt
Real Returns = Nominal Returns – Lifestyle Inflation = very negative in case of debt
Remove Taxes and the Real Returns will look even worse.
Thus, most portfolios are likely to require a higher exposure to equity to earn real positive returns post inflation and taxes.
Your Asset Allocation is likely to be skewed towards equity unless you don’t mind a real decline of your wealth or lifestyle and the ability to make a difference in this world.
New and exponential technologies will have a huge impact on how society, businesses and individuals work, play and live.
Some of the exponential technologies are Genomics, AI/ML (Machine Learning), 3D Printing, Blockchain/Crypto, Web 3.0, Robotics, Autonomous Vehicles, Space Travel, Quantum Computing, Cloud Computing, Bioinformatics and so on.
At the same time, many interesting investment opportunities will come up that we will need to understand.
And there will be a wealth transfer from the non-curious to the curious.