From wars in Eastern Europe and the Middle East to rising tensions in the Taiwan Strait, geopolitical instability has become the defining characteristic of our time.
There are now more active armed conflicts than at any point since World War II. Simultaneously, the digital realm has become a battleground, with cyberattacks escalating in frequency and sophistication, targeting both national infrastructures and private enterprises.
While these developments are concerning on many levels, they also represent a powerful investment theme.
Conflict—both physical and digital—is now driving transformative economic shifts, creating opportunities for strategic investors willing to capitalize on these trends.
Defence spending, cybersecurity advancements, and safe-haven assets are set to be the pillars of this megatrend in 2025, positioning investors who act decisively to reap significant rewards.
Global surge in defence spending
Geopolitical tensions have prompted governments worldwide to boost their defense budgets to unprecedented levels.
Nations are investing heavily to modernize their arsenals, replenish depleted stockpiles, and develop advanced military technologies. Defence, once viewed as a steady but unspectacular sector, is now at the forefront of economic expansion.
For investors, this surge in defence spending signals an opportunity to gain exposure to industries that are essential to national security. Advanced weaponry, missile systems, and aerospace innovations are all areas poised for growth.
As governments prioritize readiness and deterrence, demand for these technologies is expected to remain robust, offering long-term potential for those who invest strategically.
Beyond traditional defence contractors, broader supply chains—including logistics, technology, and infrastructure—are also set to benefit. The broader impact of increased defence spending extends far beyond the battlefield, touching industries that support the development and deployment of advanced systems.
The digital battlefield
While traditional conflict dominates headlines, the battle in cyberspace is equally significant.
Cyberattacks have surged, driven by state-sponsored actors, rogue groups, and increasingly, artificial intelligence. These attacks target everything from critical infrastructure to financial systems, posing a growing threat to national security and economic stability.
In response, governments and private enterprises are pouring resources into cybersecurity solutions. The market for digital defence is expanding rapidly, driven by the need for innovative tools to counter ever-evolving threats. Companies that can offer effective protection against these attacks are positioned for significant growth in the years ahead.
Investors who recognize the strategic importance of cybersecurity will find a wealth of opportunities in this space. From AI-driven threat detection to advanced network defence, the sector is poised for explosive growth as organizations prioritize safeguarding their digital assets.
Safe-Haven Assets
For those seeking a more cautious approach, traditional safe-haven assets remain a compelling option.
Gold and Bitcoin, in particular, are expected to shine in 2025 as geopolitical and economic uncertainties persist. The precious metal has long been viewed as a reliable store of value during turbulent times, and demand is likely to rise as investors seek stability.
Investing in gold through ETFs or other instruments offers a practical way to gain exposure without the complexities of physical ownership. As global tensions drive demand, gold and Bitcoin prices are projected to increase, making it an attractive option for those looking to hedge against volatility.
The path forward
Conflict, whether on the ground or in cyberspace, is shaping the economic landscape in profound ways.
The key is to approach these opportunities with a clear strategy, recognizing that the drivers of growth in this environment are rooted in long-term trends. While the world faces significant challenges, those who invest with foresight and conviction can not only protect their wealth but also capitalize on one of the most powerful megatrends of our time.
Nigel Green is deVere CEO and Founder
Also published on Medium.
