First Read with Strategic Tech Investor
What’s Happening This Week
It has been a tough start to the year with the Nasdaq already down 5%, but this drop could be setting us up for another strong year. We know what the Federal Reserve wants to do in regard to tapering quantitative easing and interest rates, and we can make educated decisions based on that knowledge. This means we need to focus on high-quality companies that are growing earnings and doing it in a profitable way. Not much is happening in terms of tech earnings and so we are going to be keeping a close eye on good setups. That means we are not buying anything into weakness right now as many stock valuations are still inflated.
Starting The New Year
2021 ended with volatility and uncertainty, and I don’t expect 2022 to show us the kind of outstanding market-wide gains that we have seen for the past couple of years. That doesn’t mean this is a time to abandon the market, it means this is a time to make carefully planned trades when you do trade. I’ve chosen three sectors and three companies to start the year off by doing just that. See them for yourself right here.
The Cars of the Future
Wall Street likes to chase after trends and headlines, but that’s no reason for us to follow them. To be sure, the ability to update the software of a car by wireless connection is a pretty impressive accomplishment, but we shouldn’t just assume the company that can do it is a good investment. Instead, we can invest in something more fundamental that modern vehicles need. See what that is right here.
What We Are Watching
While CES 2022 may not have been the largest in-person tech event of the year due to covid, it still introduced a ton of exciting new tech products and themes, and one of the biggest topics this year was the Metaverse. Hyundai Motors shared their vision of Robotics and the Metaverse, Samsung offered a virtual showcase and wearables were everywhere. While it may just sound like a buzzword today, many large companies are building out this virtual world. That is why we are so excited about it, and you can take a look here at some of our favorite picks in the space.
Cheers and good investing,
The Strategic Technology Investor Team