#Market Strategy — 28.03.2023

Scarcity and Security are the new watchwords

Investment themes 2023 - Updated in March


Investing in shortages and security

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. Pre-existing megatrends of maximally efficient just-in-time supply chains, ultra-cheap access to money, the peace dividend, and plentiful supply of energy and essential raw materials have all begun to reverse. Long-term underinvestment in commodities supply and production is also a key factor in driving commodities prices higher over time.

In today’s world of heightened geopolitical tensions, fast-rising prices 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, with access to affordable food and clean water both key UN sustainability development goals. 

Edmund Shing

Global Chief Investment Officer
BNP Paribas Wealth Management

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