#Market Strategy — 03.08.2023

Scarcity and Security are the new watchwords

Investment themes 2023 - Updated in July


The treble tides of COVID-19, conflict and climate change have laid bare the fragile nature of the global world order, and of the economy. Prior long-term underinvestment in commodities supply should also drive commodities prices higher over time.

In today’s world of heightened geopolitical tensions, and increasing shortages of energy and other commodities, new trends of energy & raw materials security, nearshoring of goods production, and technological security have emerged. The increasing prevalence of global weather volatility in the form of floods and droughts highlights once again the focus on food and water security.

Critical battery metals in the demand spotlight

Exponential growth in renewable energy and electric vehicle demand will drive increasing demand for underlying critical battery metals, such as copper, tin, nickel and lithium. In addition, Latin American- and Asian-producing countries have begun to place new restrictions on the ownership of production and the export of these battery metals. Together, these factors should lead to higher prices for these metals over time, given a lack of new supply in the near future.

Cybersecurity essential in cloud computing

The growth in adoption of cloud computing and the increase in large-scale IT network hacks and ransomware attacks are fuelling growing demand for cybersecurity solutions and services.

Over 2023 to date, the cybersecurity theme has performed well, with the Wisdomtree Team8 Cybersecurity index gaining 20% in euro terms.

Edmund Shing

Global Chief Investment Officer
BNP Paribas Wealth Management

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