Right now, seeing what’s going on in the market can make your head spin, but don’t’ worry, because it’s nothing that Strategic Tech Investor can’t handle.
Whenever I can, I like to point out just how important it is to avoid getting swept up in the big media hype that can push the market back and forth on temporary headlines. In fact, it’s my second rule of tech investing, “separate the signal from the noise.”
And wow, is that rule ever coming in handy right now, because we’re seeing headlines coming out now that could push the market any which way.
Let’s start with some good news. So far, three companies, Pfizer Inc. (PFE), Moderna Inc. (MRNA), and AstraZeneca PLC (AZN), have all announced this month that their COVID-19 vaccine candidates are demonstrating 90% efficacy rates in testing. However, it’s still unclear how long it will be until an effective vaccine is widely publicly available.
Not only that, but we are currently in a period of limbo between the Trump and Biden administrations, and the question of a new stimulus package isn’t settled.
We’re also seeing that state-level officials, like Governors Larry Hogan of Maryland and Kim Reynolds of Iowa, have announced new restrictions, with the possibility of more on the way.
With so much news, positive and negative, flooding onto the airwaves, it’s impossible to say for sure what will happen next. Luckily for us, it’s not going to matter.
With people spending more time at home, subscriber totals for Disney+, Netflix, and Roku have ballooned by the 10’s of millions, and 80% of U.S. households now have some way to stream videos.
The quality and amount of content is incredible, but there’s something that’s been lacking with the services listed above – the ability to just sit down and channel surf live TV, have live news updates running in the background, and watch your favorite sports as they are being played.
Thankfully, products like Alphabet Inc. (NASDAQ: GOOGL)’s YouTube TV, DISH Network Corp. (NASDAQ: DISH)’s SlingTV, and Walt Disney Co. (NYSE: DIS)’s Hulu+ Live TV have all helped us unplug from the traditional cable companies that charge an arm for a leg for a bunch of extra channels we don’t want or need.
Between outstanding vaccine announcements, the possibility of new lockdowns looming, Biden elected, and stimulus and the senate uncertain, the media doesn’t know where the market is going, I’m not worried at all.
In my recent interview with the online news provider Cheddar, I break down all my best tips and forecasts for the biggest upcoming events in the news that could push the market, and how best to invest to ride the next big market wave instead of getting soaked by it.
After a period of troubled economic times, tech is what has allowed the country to keep on functioning. We’ve seen it from fields like e-commerce, cloud computing, and fintech and the numbers show it. Thanks to tech, America saw a 7.4% GDP increase in Q3 of 2020. Leading tech players are making good on that, with Amazon.com Inc (AMZN) in particular managing to boost earnings by 192%. Apple Inc. (AAPL) suffered a setback, thanks to delays in getting out its first 5G iPhone model, but that won’t change Apple’s status at the standard by which mobile phone technology is judged.
This month on Digitization-X, your host Alex Kagin, Director of Technology Investing Research for Money Map Press, sits down with David Zeiler, a Money Morning editor and 9-year veteran of the cryptocurrency space. He’s an early adopter who mined Bitcoin back when it could still be done with consumer hardware, and a prolific writer on the subject of Bitcoin and cryptocurrency.
Once again, I was right, and nearly every so-called “pro” was wrong.
Leading up to this election, I claimed that the race was too close to call. Not only did the race turn out to be a nail-biter, but the fact that it did is great news for tech investors.
This outcome has spurred a massive rally for stocks, especially for high tech, in no small measure to the fact that thanks to the closeness of the race, the Republicans will likely hold the Senate.
You see, wall Street prefers divided government so that neither party can run the board on taxes and spending.
Not only that, but tech has been seeing a powerful growth trend across the past two administrations in general, regardless of party.
All in all, this remains a great time to be investing in tech as the sector helps America rebound from the recession.
You can expect tech to give Biden a big boost early in his presidency. It can do the same for you. Strategic Tech Investor is all about finding ways for you to make money no matter how the political winds turn.
COVID-19 stimulus has not only been a tremendous deal, but it’s also still a highly pressing matter.
Congress and the administration responded to the economic impact of the coronavirus pandemic with a $2.2-trillion stimulus last March.
It was the largest stimulus package ever adopted and amounts to roughly 10% of the nation’s economic value. And I expect that it won’t be the last one, either.
Make no mistake. This is a very complicated package totaling more than 800 pages.
It provided $500 billion in loans for large firms and $377 billion for small ones. Families received $300 billion in one-time cash payments.
No doubt, this was a godsend to millions of workers and employers alike.
But there’s just one problem – accounting for all that cash flow is no simple matter, but, as the Deloitte accounting service company points out, that record keeping is necessary to see all the benefits of the program.
If a beneficiary business wants to apply for loan forgiveness, they need to be keeping track of where all of that money they received is going.
E-commerce, video conferencing, gaming, and basically any stocks involved with staying at home have seen phenomenal returns this year with many stocks up over 100%. In light of that, it’s hard to know whether you are buying too late or if we are just at the beginning of a lasting trend.
Fortunately, there’s no better place to be forward-looking than tech because something new is always happening that leads to money-making decisions.
Take for example Chewy.com (NYSE: CHWY), an online retailer of pet food and other pet-related products whose stock is up almost 200% since the start of the pandemic. This here is a fundamental shift in e-commerce and consumer habits and not a one-time event.
With stores closed across the country, it’s understandable why this company has done so well, and I believe they will be able to sustain their newfound business as people discover the convenience.