Now that we’ve closed the books on the first quarter, I thought this would be a good time to dip into the virtual “mailbag” and answer some of the big questions you’ve been asking.
I understand why investors want to gain more insights about the tech investing and the markets right now. After all, in just a few weeks, we’ve been whipsawed from a market under duress to one brimming with opportunities.
That makes this an excellent time to harness the power of technology to crush the overall market and boost the value of your net worth.
Now then, while tech stocks are my main focus, I do sometimes venture into less “traditional” areas.
So, to get started I’ll answer a question about a wholly new investment opportunity that emerged only in the past few years.
It’s one that I consider a tech-first solution to the perpetual problem of insuring your portfolio in turbulent markets.
Last week, I recommended picking up shares of Northrop Grumman Corp. (NYSE: NOC) on the dual trend of increasing global tensions and rising defense budgets.
Those shares have already run up 23.5% in the past 12 months. That would be an impressive feat for a small cap, but Grumman is one of the five biggest defense and aerospace firms on the planet.
These kinds of gains prove our thesis about investing to follow Rule No. 3 and “Ride the unstoppable trends.”
Grumman has good company on its ride into the stratosphere. And there is so much money pouring into the defense sector right now – more than $1.75 trillion by 2020 – that it makes sound investment sense to open up our exposure to it a bit and capture even more of the gains this growth sector is offering.
After living through a few, you know all about “recessions.”
A recession is two consecutive quarters of declining gross domestic product (GDP). While it may feel like it at times for some folks, according to economists, we’re not in a recession.
However, now that we’re right in the middle of first-quarter it looks like we might be seeing the third straight quarter in which S&P 500 stock profits are lower on a year-over-year basis.
That puts us in an “earnings recession.”
You can blame this recession on market volatility, the Chinese and European slowdowns, slumping oil prices and/or and widening credit spreads in the bond market.
Whatever the case, this “earnings recession” just offered up a chance to buy two prime tech stocks at steep discounts.
Army Chief of Staff Gen. Mark Milley has been saying the U.S. Army is in a state of “high risk” when it comes to its capability of fighting one or more large conflicts or defending the country.
And Gen. Milley finally went on record with his message in Defense News earlier this month.
Now, he wasn’t saying our military isn’t up to the job – far from it. Rather, he meant that this critical capability is a tall order considering the threats we face right now and into the future.
North Korea, for instance, has announced its development of a miniaturized nuclear warhead. It already has a ballistic missile capable of flight to the U.S. west coast.
Saudi Arabia is fighting a two-front war. Iraq, Syria and Libya are failed states and fertile ground for terror groups like al-Qaidaand the Islamic State. The European Union and Turkey are reeling from homegrown ISIS-sponsored terror and the worst refugee crisis since.
Meanwhile, the National Association of State Chief Information Officers just released a report saying that we likely couldn’t stop a cyberattack that happened simultaneously with a natural disaster, like a Category 5 hurricane, with our current cybersecurity capability.
Clearly, the world is not a safe place right now. And governments here and around the world have their work cut out for them when it comes to providing a defense that can match and defeat the threats.
And they’ll need assistance from the tech and defense companies that have, over the decades, designed and built the innovative and effective weapons systems that have helped win wars around the globe… like the one I want to share with you today.
It’s where our government is turning to help them do all that – and more…
This week at its annual F8 developer conference in San Francisco, Facebook Inc. (Nasdaq: FB) made clear that it wants to be involved I every part of your digital life. Michael dropped by CNBC to talk over the nuts and bolts of that bold vision.
Global investors are concerned about the undeniable slowdown in the Chinese economy, but that obsessive focus on bottom-line economic growth means that people are missing out.
You see, there are immense shifts underway in China right now. The economy is maturing, and a recognizable middle class – already larger than the one here in the United States, at 109 million people – is arising. This in a country where a middle class was once unthinkable and, indeed, prohibited.
This means China’s economy is transforming into a consumer-driven one, much like the U.S. economy.
Companies the world over, like Apple Inc. (Nasdaq: AAPL), Toyota Motor Corp. (NYSE ADR: TM), and Koninklijke Phillips NV (NYSE ADR: PHG), are already making a killing in China, supplying the middle class their every material desire.
But even more important than desires are needs – and those firms that can provide for the basic needs of the Chinese middle class effectively have a license to print money now.
That’s where the company I’m about to show you comes in.
This company has a virtual lock on one of the fastest-growing segments in China – no human can live without this service for very long – and you can easily buy its shares on the New York Stock Exchange.
Last month, doctors from C.S. Mott Children’s Hospital in Ann Arbor, Mich., used a special type of splint to save an adolescent girl’s life.
The splint was made of a “miracle material” called polycaprolactone (PCL). If you saw the technology behind this life-saving procedure in action, you’d be amazed.
Even more amazing: That same life-saving technology – 3D printing -is deeply out of favor on Wall Street.
“Throughout 2015, 3D printing spending slowed considerably across the industry,” one popular mainstream investing publication recently wrote. That “was caused by an oversaturation of 3D printers already in the marketplace.”
True, 3D printing suffers from some of the same “growing pains” as any young technology. But brushing off the entire sector is foolishness.
For one thing, 3D printing is on pace to become a $1 trillion sector able to disrupt everything from your neighborhood jewelry artisan to the world’s biggest vehicle manufacturers.
What’s more, a series of 3D printing “pure plays” just exceeded analyst earnings expectations, which tells me this is a sector on the rebound.
Now, those “pure plays” are mostly the sorts of inherently volatile small-cap stocks that we don’t usually invest in here. But I’ve found a mature tech company that’s at the cutting edge of the entire 3D printing “ecosystem” – and is already operating as a leading software firm.
I’m talking about the kind of profit-creator that will provide stellar long-term gains for investors like you – and whose shares could soar 77% in the next 12 months.
Amazon.com Inc. (Nasdaq: AMZN) wants to be more – much more – than just the King of E-commerce.
The Seattle-based company used its huge servers to build Amazon Web Services into the globe’s largest cloud-computing company. And Amazon Prime, while not the leader in streaming media, is definitely a contender.
Now, Amazon has sets its sights on global shipping and logistics.
That much became clear March 9 when Amazon announced plans to lease 20 jumbo delivery jets from Air Transport Services Group Inc. (Nasdaq: ATSG).
Neither firm put a dollar value on the five-year deal. But the news sent small-cap ATSG’s stock soaring 16% in a day.
It also gave both average investors and the top dogs on Wall Street the feeling that – with Amazon horning in – this is a poor time to invest in the other major shipping firms out there.
There’s just one thing wrong with that notion – it isn’t true.
I know of one global shipping giant that’s so competitive and innovative that it will flourish no matter what Jeff Bezos does… and will pay you a healthy dividend while you watch its share price climb and climb.
You probably already know that China is the world’s largest car market.
But you might not know is that China’s leaders are pushing the nation’s automakers to improve their fuel standards. So by 2020 we should see the average Chinese-made car using 39% less fuel than models from 2008.
To meet this mandate, Chinese firms will begin rolling out “mild hybrids” – electric vehicles (EVs) powered by gasoline as well as by a new type of “low voltage” hybrid car battery.
This development puts China at the source of a dramatic technological breakthrough that’s certain to roil the $75 billion battery market.
And while no one can say how things will end up, you can be sure that there will be winners and losers in this sector of the market.
I’ve found a backdoor way to profit from this coming market disruption.