Over the past decade, the United States has solidified its global economic leadership, driven by unique factors. Despite the high valuation of U.S. equities compared to other regions, the country has maintained superior performance due to the quality of its corporations and the high return on invested capital. A key driver of this growth has been the rise of technology, with some large-cap tech companies demonstrating extraordinary value creation capabilities. These firms, often seen as overvalued, deserve higher regard for their innovative and profitable contributions.
Emerging opportunities across the globe
Shifting the focus beyond the U.S., Japan presents a particularly compelling case today. Recent corporate reforms aimed at maximizing shareholder returns are reshaping the country’s economic landscape. Here too, technology plays a pivotal role: the rising technological intensity of Japan’s GDP is set to accelerate, driven by advancements in artificial intelligence. This transformation extends to related industries, such as data center construction, which demands vast infrastructural resources, from energy to tech equipment. The surge in energy consumption, unseen since the 1970s, is fueling capital expenditure on strategic and infrastructural projects, reinforced by decarbonization and industrial reshoring.
Long-term economic trends
Beyond technology, other long-term trends continue to shape global markets. The shift from cash to card payments benefits companies like Mastercard, while e-commerce steadily grows, capturing an ever-increasing share of retail sales. Although this growth is no longer as rapid as in its early stages, it remains a sustainable process that provides significant opportunities for companies with solid and innovative business models.
Today, identifying firms capable of translating these trends into consistent earnings is crucial for those seeking long-term investments
