The changing world order and next decade's bubble

AT every decade's start we become conditioned to keep investing in the sectors that created the largest profits in the previous 10 years. The conditioning is so strong that it becomes unfathomable to envision how the dominant sectors and countries of the previous decade could cease to dominate in the future.

And yet the top performing companies of one decade do not continue to outperform in the following decade. They usually enter a prolonged multi-year bear market, resulting in flat to negative returns 10 years later.

This is where we are now, where the gains from high-growth technology companies have been so strong over the previous decade that it seems impossible to see how Apple, Google, Microsoft and Amazon cannot continue to do well.