โ Digital health: People need health care, even when incomes decline.
โ Discounted/used goods, consumer staples, and the circular economy: Dollar General outperformed all 2008 stocks, rising more than 60%.
โ Budget travel and leisure: With energy costs soaring, travel is becoming prohibitively expensive. Expect a shift to local activities.
โ Logistics: Never fully recovered from 2020, the entire supply chain remains under stress. We see particular potential around productivity, including mapping tools, route planning, resource management, and seamless APIs for connectivity.
โ Personal services: Two themes: (1) accounting and tax services will remain an annuity and (2) mass layoffs will lead to a rise of new company formations and freelance workers. Companies addressing the freelance workflow from finding the next gig to invoicing and getting paid should thrive.
โ Critical stack SaaS only: Only SaaS with easy-to-measure ROI attributed back to cost dollars is safe.
โ The energy reset: Weโre in the midst of a global energy transition away from fossil fuels and toward decarbonization. Two areas in focus are making energy management more efficient and grid digitalization to prepare for the transition and balance multiple sources (wind and solar).
โ Remote everything: 2020 permanently changed the future of work leading to more companies hiring remote teams in lower-cost-based markets to maintain productivity and increase profitability. Companies that help identify, hire, onboard, pay, handle taxes or train remote staff will likely benefit.
๐ Companies need to be mission-critical, enhance #productivity with limited resources, and have a general flight to #quality.
