Facing facts: Challenging some common investment myths
In an age of misinformation, persistent misconceptions continue to cloud the sustainable transition, obscuring the economic, technological and scientific fundamentals that underpin it. Political priorities shift, public narratives evolve and markets respond accordingly. Yet the long-term forces shaping our economy continue to move forward.
Relying on evidence-based decision making is fundamental to a robust, long-term investing strategy
That is why Pictet has launched Facing facts – an evidence-based guide to some of today’s most persistent investing myths and the evidence that challenges them.
We examine questions that continue to shape investment decisions. Are fossil fuels still the cheapest source of energy? Is climate adaptation simply a cost rather than an investment opportunity? Can impact investing deliver market-rate financial returns? Are emerging markets too risky to invest in?
The evidence paints a nuanced picture.
Renewable energy is now cheaper than fossil fuel alternatives across the vast majority of new projects and continues to dominate new power generation globally. Climate adaptation is emerging as one of the defining investment themes of the coming decades, with the potential to generate significant long-term economic benefits. Emerging markets are deploying cleaner technologies at remarkable speed while becoming important centres of innovation, and nearly 90% of global impact investing assets seek market-rate financial returns.
Taken together, these trends reinforce a simple point: while public narratives may shift, the underlying economic, social and biophysical fundamentals are where the facts lie.
For investors, understanding those forces is increasingly important - not only in managing risk, but in identifying opportunities underpinned by resilience, competitiveness and long-term value creation.
Our Facing facts campaign brings together the latest evidence and investment perspectives to help clients distinguish enduring fundamentals from short-term narratives.
Unpacking common myths with Pictet experts
Taking the long view
Responsible investing is a long game, inherently incompatible with chasing short-term market cycles. While political narratives and public opinion may shift over time, the underlying economic, social and biophysical fundamentals continue to evolve and shape our reality.
For investors, understanding these trends is becoming increasingly important, not only in managing risk, but in identifying investment opportunities that are underpinned by resilience, competitiveness and long-term value creation.
