The Future

The Future of Investing

Why will capital markets continue to need both short- and long-term capital?

Capital markets will continue to need short-term capital to provide the liquidity necessary for the smooth functioning of our markets as well as accountability by responsible managers. Long-term capital investment provides the capital to create long-term industries of the future, such as clean energy, advanced technological infrastructure, advances in health technology, and new forms of transportation, among many other uses. As an example, the World Economic Forum sees that by 2020, the world will need an annual investment of $500 billion in order to reduce CO2 emissions. This investment is usually supported by the long-term investment community by the investments made in bonds that may finance projects and in the stocks of companies developing this technology.


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