As 2025 approaches, investors are being urged to position themselves strategically in response to three major megatrends that are expected to dominate the global financial landscape.
According to deVere Group, one of the world’s largest independent financial advisory and asset management firms, these trends—rising geopolitical conflict, surging energy demand, and the transformative rise of artificial intelligence (AI)—are set to reshape markets and create significant investment opportunities.
Geopolitical tensions are escalating in various regions, with Europe still reeling from ongoing conflicts, the Middle East facing renewed unrest, and East Asia grappling with heightened territorial disputes. The Institute for Economics & Peace reports that the global conflict index is at its highest point since World War II, with over 50 active armed conflicts worldwide. These tensions are driving defense budgets to unprecedented levels, particularly in the United States, which is expected to exceed $1 trillion in defense spending by 2025. In response to the rising threats, investments are flowing into military technologies, missile defense systems, and cybersecurity. Nigel Green, CEO of deVere Group, highlights that the growing demand for digital defense solutions will provide long-term opportunities for investors, especially as AI-driven threats continue to emerge.
Another key megatrend is the surging demand for energy, driven by economic growth, the electrification of transport, and the rapid expansion of AI technologies. A notable shift in the energy sector is the resurgence of nuclear energy, which is being reintroduced to the global energy mix. Legacy nuclear plants are being refurbished and upgraded, offering substantial investment opportunities, especially as new projects face regulatory hurdles. Green explains that the energy transition is at a critical juncture, with nuclear energy becoming an essential part of the solution. Companies with established nuclear infrastructure are expected to experience significant growth, while offshore oil and gas exploration also sees a revival, signaling strong long-term profitability in the energy sector.
Artificial intelligence continues to revolutionize industries across the globe. In the past year, the adoption of AI technologies has accelerated, with businesses across sectors racing to implement AI to drive efficiency and unlock new sources of revenue. Major investments are pouring into AI infrastructure, particularly in data centers and cloud technologies. Green stresses that AI is not just a technological trend but the cornerstone of future economic growth. Companies that are building the infrastructure to support AI’s rapid expansion will be the key drivers of market gains in the years to come. Despite concerns about overvaluation, AI’s transformative potential is still in its early stages, and investors who capitalize on this growth now are poised to benefit in the long term.
In this complex environment, strategic positioning is more crucial than ever. As global markets are shaped by geopolitical risks, energy challenges, and AI-driven innovation, Nigel Green advises investors to align their portfolios with these megatrends. By doing so, they are likely to outperform those who react to short-term market shifts. According to Green, 2025 will be a year of complexity and opportunity, and proactive investors who identify and align with these forces will be well-positioned to succeed.
“At deVere, we are focused on helping our clients stay ahead of the curve by identifying the forces that will truly shape the future. The megatrends of conflict, energy, and AI will define 2025. Now is the time to act,” Green concludes.
