Cyrte’s philosophy is based on the notion that the reallocation of disposable income is the most important factor in explaining the absolute return on investments. Historically, significant changes in the allocation of disposable income are driven by socio-economic developments that are caused by the deployment of newly introduced means of production, transportation or communication. These introductions converge time & space, leading to higher degrees of transparency and decentralization, thereby fundamentally changing the relationship between producers and consumers, but also between countries which are considered to be part of the core and those that have been categorized as (semi)-periphery. This emancipation or even to some extend empowerment of the consumer (and on a more abstract level, the emerging regions) will cause a tremendous transition from a converging worldview to a new paradigm of divergence. Characterized by a dynamic equilibrium, something we have not seen for at least five decades. To the opinion of the Cyrte Research group, the next five years will not be about a time of change, but moreover a change of time.

This meta-trend currently holds true, for example, in relation to the implementation of ICT as a production, transportation ánd communication medium in everyday life. This tripple-play will empower the masses and tilt all traditional one-dimensional relationships into an interactive dialogue. This marks the start of the deployement- or application-fase where the real meaning of technology is in the use. An application phase will initiate the reallocation of disposable income across all sectors and regions. Our Innovation-curve analysis predict that the big surge is yet to come, the full implementation of ICT-technology in all aspects of our life. Looking at the amount of non-consumptive moments and at the enormous discrepancies between economic value and social value, Cyrte expects the techno-focus will shift towards social-innovation and the accompanying, structural re-allocation of disposable income facilitated by numerous social innovations.

Therefore all Cyrte funds have been aligned at the Clash of Cycles: the business cycle, the hegemonic cycle and the innovation cycle.
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