James Lee's blog

Many investors are beginning to think of water as an investable asset class – similar to oil or precious metals, but with less volatility.

In many industries, we have seen the disappearance of jobs, the workplace, and the workweek.  Work happens anytime and from anywhere.  Yet, other businesses are comparatively unchanged. Why is this?  We currently have two separate economies running in parallel – the digital and the physical.

Understanding long-term trends is an important tool in identifying opportunities and risks.  STEEP analysis looks at the world through five different perspectives – Social, Technological, Economic, Ecological, and Political. 

The following are the major themes that are presently shaping the future...

Imagine that you own a desktop box that could print physical objects.   At the push of a few buttons, you download a file, modify it, and then hit the "print" key. The possibilities would be endless for localized production, print-on-demand distribution, and the customization of almost everything.    3D printing offers the potential for an industrial revolution within the current generation.

Name one material that has the following qualities:  superstrength, superconductivity, self-cooling, anti-bacterial, anti-corrosive, photovoltaic.   Carbon is one of the most abundant elements on the planet, yet in the form of graphene it has unique qualities. Graphene is a sheet of carbon that is just one-molecule thick. Rows upon rows of interconnected six-sided carbon molecules are linked together in a way that is unusually strong, yet flexible.

Frustrated by historically low interest rates, small investors are finding that traditional financial institutions are unable to provide them with satisfactory levels of income.   What if people could easily find qualified borrowers and make their own loans directly?

They are all positive role models. There is a common thread of hard work, humility, and talent for all three men.

The return of uncomplicated heroes signifies an uptick in public mood. After years of expecting (and finding) the worst in everyone, people are ready for a "feel good" story.

The most important change happening in the minds of consumers today is a shift towards post-modern values systems. ConsumerShift is a comprehensive cartography of the emerging consumer psyche.

2011 was the year that wasn't. U.S. stock prices were largely unchanged for the year; commodity inflation appeared to be happening, but then didn't; the credit rating of the U.S. government was downgraded for the first time in history, yet long-term U.S. treasury bonds were among best performing assets in the world.

Collectively, it seems like everyone is holding their breath, waiting for "something" to happen. Small investors have fled the markets.  Market timers have been scratching their heads as their trend-following indicators have been getting whipsawed since last summer.

So, with a certain amount of hesitation, I offer the following forecasts for 2012...

The world is changing for big brands. Can they differentiate themselves in a market that demands authenticity, craftsmanship, and narrative?