Prannoy Roy, Investor Ruchir Sharma On 2022's Top 10 Trends: Highlights

"Old Economy" Still In Demand
Ruchir Sharma: A lot of echo is here, right? Even with the 'greenflation' theme that where is the new investment going and where is demand? So, of course the new economy is becoming more and more important. There's an explosion in digitization as we have shown. But people are still demanding homes, still demanding cars, still demanding commodities. And I think that not enough investment is going in those places and there's too much investment going in the new economy. So that for me is like a common theme I think that runs through these 10 trends.

Demand For "Old Economy" Is Still High And Rising

Investment In "New Economy" Overtakes "Old Economy"

Metaverse: Rising Hype For Virtual Economy

Retail Investors Dominating
Ruchir Sharma: Retail investors are now dominating this market. More than half the volume on the stock exchanges now is retail investor volume. You know, small investors speculating a lot. In places like the United States, they tend to do a lot of day trading. Buying very low value options and other kind of instruments to play in the market. So, it is concerning.

Major Change In Types Of Investors

Rise In Small Investors

Good Idea Gone Too Far

Bubblets Fall 70% In 2-3 Years, Historically

Identifying Bubblets

What's A Bubblet?
Ruchir Sharma: Yes. So, we have all heard about Bubbles. Obviously, the issue with it is how do you value a Bubble? How do you know something's a Bubble? I have come up with this new concept of Bubblets. So, what's the difference? Bubbles are something I think are very big and cover very big markets... I think the difference is Bubble covers a very big part of the market and Bubblet covers a very specific, smaller part of the market.

Reasons For Data Localisation

World's 5 Most Aggressive Data Regulators

Data Nationalism
Ruchir Sharma: This is a very new development because we spoke a lot about de-globalisation. By that, we have generally referred to increasing protectionism in the trade of goods and services, sometimes even capital and migrant flows. But the assumption everybody had, even a couple of years ago, is that data had no borders. So, it would keep crossing borders and that trend would go on. The importance of data is huge now.

More Hours, Less Output During Pandemic

Work From Home Amid Pandemic

Inflation: Two Steps Forward, One Backward
Ruchir Sharma: Inflation in my forecast is a two steps forward, one step back process... In general, the government's spending is likely to keep going up but the stimulus was heavy and intense in 2020 and 2021.

Investment In Oil And Minerals

India Is Vulnerable To 'Greenflation'

Demand For "Green" Metals Rising