Authors
Mark Fulton and others
Looking back at 2009 diversification strategies due to market meltdown across sectors and asset classes did not work, as financial theory would have suggested. The extreme nature of the cycle resulted in market failure requiring government intervention. For 2010 across asset classes, climate change investment is growing rapidly relative to the broader market. Climate change sectors have shown outperformance against the world benchmarks and Deutsche Bank believes that underlying regulatory frameworks will continue to support these sectors strong long-term growth prospects. Investors should consider a larger weighting to climate change investments.