To hear Big Media tell it, only a fool would bet on China right now.
After all, China is the source of the coronavirus that has spooked investors around the world.
Here in the U.S., the outbreak is receiving nonstop media coverage. It’s all over the TV and radio, newspapers and magazines as well as online news sites.
But for savvy tech investors focused on the long-haul, this could prove to be a great time to invest in China’s burgeoning e-commerce sector. This is a country with more than 893 million people online, according to Statista.
Even better if our investment goes beyond the world’s most populous nation and gives us access to other emerging markets.
Imagine if all it took to treat a case of cancer was taking out the trash.
Now I want you to imagine that your body could do it all for you.
Hold that thought. Because a tech platform with that very task in mind is set to hit the market sooner than you think and will target a field set to be worth more than $160 billion.
Here’s the thing. Several life sciences firms are hard at work perfecting a new class of drugs known as “degraders.”
Let me explain. The root of many diseases lies in misguided proteins that bind together. So, the idea here is to come up with a new class of drugs that activate the body’s own molecular trash disposal systems.
This is one of the most exciting breakthroughs I’ve come across in many years. I believe it puts us close to the day when one pill can cure dozens, if not all, diseases.
My childhood family dinner conversations were a bit different than most folks’.
Sure, we talked about school, sports, neighborhood gossip, movies – normal stuff. But we also talked about military contractors, weapons systems, and defense budgets.
That’s because my father was the award-winning senior military editor for Aviation Week & Space Technology magazine, the bible of that industry. And that gave me a front-row seat for the military de-escalations and escalations of the 1970s and 1980s.
Therefore, when last year President Donald Trump called for raising the fiscal 2018 defense budget by 10%, I took notice.
Without doing the math – thanks to those long-ago family dinners – I knew immediately that this would represent the biggest defense budget increase since the Ronald Reagan years.
But that’s just trivia. Here’s the “meat”…
President Trump wants more airplanes, tanks, and troops as well as technology for missile defense and a wide range of other platforms. And that means 2018 is stacking up to be the best year for the defense industry – and its investors – since 1981.
That gives us a target-rich profit opportunity for this New Year.
Black Friday/Cyber Monday hit about two weeks ago – and all I’ve heard since is doom and gloom.
The “retail apocalypse” is here, and every “expert” out there is telling investors to “Short” brick-and-mortar retailers… wait, no, they should “Buy” retailers on the dip.
Then there are those who try to explain that this isn’t really an apocalypse, and that this specific retailer is going to survive (but this one or this one isn’t).
Over at Jim Cramer’s TheStreet, I saw one writer recommend an ETF – EMTY, as in “empty” stores – whose share price rises whenever a bricks-and-mortar retail stock index falls.
All this is ridiculous – and way more complicated than necessary.
Yes, Macy’s Inc. (NYSE: M), Sears Holdings Corp. (Nasdaq: SHLD), and Office Depot Inc.(ODP) are plummeting. And, indeed, J. Crew Group Inc. and Toys “R” Us Inc. are heading toward insolvency.
But check out these numbers…
Adobe Analytics tracked $5.03 billion in online sales on Black Friday – and an even more robust $6.59 billion on Cyber Monday. And the analysts there think the stage is now set for e-commerce sales to surpass $100 billion this holiday season, a new record.
In other words, technology is behind all the “apocalypse.” So instead of picking among retailers to “Buy” and/or “Short,” we should be investing in the technology that’s causing the “apocalypse.”
And though it’s a good start, we can do way more than “Buy” Amazon.com Inc. (Nasdaq: AMZN).
This weekend, Donald Trump’s presidential campaign put out a 312-word press release.
In it, Trump economic advisor Peter Navarro says that major media organizations are becoming Standard Oil-style “trusts.” Further, Navarro says that Trump would “break up the new media conglomerate oligopolies that have gained enormous control over our information, intrude into our personal lives, and in this election, are attempting to unduly influence America’s political process.”
Trump sent out this message as a response to AT&T Inc. (NYSE: T) announcing plans to buy Time Warner Inc. (NYSE: TWX) for more than $85 billion. He doesn’t like that deal much.
“AT&T, the original and abusive ‘Ma Bell’ telephone monopoly, is now trying to buy Time Warner,” Navarro wrote. “Donald Trump would never approve such a deal because it concentrates too much power in the hands of the too and powerful few.”
It’s a somewhat surprising anti-business stance, as it puts Trump in company with the likes of U.S. Sen. Bernie Sanders.
But that’s where we find ourselves this year…
Whether you’re in favor of this deal or not, I know you’re looking at it as a possible profit opportunity. You’re a tech investor – that’s how you think.
I want you to stop right there.
M&A deals like the proposed AT&T-Time Warner merger can help these companies beat their competition – and boost their share prices.
That’s obviously good news for investors – if they’re already “in.” However, you’re likely not “in” this one.
But I have a “workaround” around this problem. It will help you boost your earnings via tech-sector M&A… and you won’t have to get “in” early.