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.
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.
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.
Hearing that two of my neighbors had each gotten a new dog in one week may not sound like much.
But to me, those were important data points in a much larger trend. According to TD Ameritrade, 33% of Americans have considered getting a new pet to help keep them company amidst COVID restrictions.
They actually spell Big Money for savvy tech investors – if you know where to look.
I know this from personal experience. I follow the animal health care market because my dog, Roxy, has a bit of arthritis and may soon need to start a course of drugs.
And this knowledge can not only help America’s pet owners care for their companions but also find the hidden profit potential in animal healthcare technology.
It’s a growing market, as with much of the nation still working or attending school from home, demand for dogs is booming.
Consider that the U.S alone already boasts 300 million pets. Related health care on a global basis last year will soon be worth $327 billion.
This month, for your Strategic Tech Investor monthly video Q&A, I’m looking into some of the hottest market issues heading right into the election, including how I think it’s going to go.
But I don’t stop there. I look into Operation Warp Speed, the federal project to get a coronavirus vaccine to market as soon as possible, and how you can play it for the best chance at reliable gains.
If you want to go even further and look into how you can multiply your money even further with the development of what we call new “super vaccines,” click right here.
All of that, plus the new 5G iPhone, and what it’s going to mean for the smartphone market, and some of the best plays I’m seeing on the horizon for the entire high-tech sector.
You can click on the video image below to hear all about what I have to say. And, for next month, if you have any questions about tech investments and the tech-driven market, leave a comment on this video for a chance of having it featured on next month’s video Q&A.
See, on September 20, 2019, I told you that Washington’s war on Big Tech was likely to go nowhere, but the option remained open for the Federal Department of Justice to bring a case.
And that is exactly how events have transpired. The Justice Department, along with seven states, recently opened a case against Alphabet Inc. (GOOGL).
The basic premise is that Google has been using its commanding market position to make Google’s search engine the default on a whole vast selection of devices.
If that sounds eerily familiar to the case against Microsoft Corp. (MSFT) 20 years ago, that’s because it is the same basic idea; a search engine holding its leading market share through deals whose legality is now in question.
Last year, companies like Alphabet Inc. (GOOGL) were under fire from Congressional Democrats led by Jerrold Nadler of California.
What I said at the time is that Congress would have very little to say about the business practices of titans like Alphabet, the parent of the dominant search firm Google.
I went on to cite two previous federal antitrust cases taken against large tech leaders.
But now, with the Justice Department getting involved, I want to help you understand what this all means for tech investors.
Before November 3, everyone is trying to get ahead of an “Election Day” boost – buying stocks in certain sectors and hoping prices rise because of who won the race.
You don’t have to do that because this technology I’m about to talk about is set on an unstoppable path. I have a clear winner that’s going to make you money, no matter who is in office.
I sure hope you don’t make the kind of costly mistake my uncle did.
A few years ago, the retired telco worker invested in a communication company that offered a juicy double-digit dividend.
When I heard about that, I ran some numbers on the company. And what I saw alarmed me.
Windstream Communications had a mountain of debt. My concern was that if things got tight, it would cut the dividend.
And sure enough, that’s exactly what happened. Shares slide from a high of $100 to below $2 before Windstream filed for bankruptcy protection.
I’m sharing this story with you because I’m concerned other retirees or those approaching retirement, may be tempted to shop around for high yields after the Fed recently signaled its commitment to low interest rates.
Irony abounds. Tech has become the very best place to find dividends that are the least likely to be cut no matter what happens with the economy.
When you run a marathon, it’s better to focus on the finish line rather than each breath or stride. That was the first thing that came to mind this month as the tech-heavy Nasdaq sold off roughly 10% and Apple saw $180 billion erased from its market valuation in a single day, the most any U.S. company has ever lost in a trading day.
Focusing on the finish line is important not just in sports but also in the stock market. While the tech sell-off hammered markets over the last two weeks, it is important to look at the bigger picture. Just like a marathon runner might need to slow down to catch their breath, the market needs to do the same thing. A healthy pullback is good for any bull market.
Since the market collapsed in late February and early March the Nasdaq is still up roughly 60% and close to record highs. To me, the pullback is a blessing in disguise as the best tech stocks will continue to rise long into the future.
Remember, this is a marathon, not a sprint. Just look at Tesla Inc. (TSLA). Its stock dropped by almost 50% in 2018-2019, and in 2020, it had a similar drop. But if you would have held on for the ride instead of selling in the downturn, you would be up over 500% today.
The same could also be said for semiconductor company Nvidia Corp. (NVDA). It saw an over 50% drop at the end of 2019 and then in 2020 dropped 30%. But if you held on through the drops and even bought right at the previous peak, you would still be up over 70%. Going out even further, you could be up 10,000% and 30,000% respectively. Those are some big gains anyone would be crazy not to want.
That is why it is important to look at the bigger picture. The Nasdaq has its ups and downs and just like a marathon, it takes some time to get to the finish line. This month’s highs are still above the peak before the pandemic and this comes at a point when the economy is still far from recovered.
So, when I see pullbacks like this, I go back to tried and true companies that survive these market conditions and have the fundamentals to move higher.
After contracting COVID-19 last May, he was hospitalized with severe respiratory issues and multiorgan failure.
And if that wasn’t bad enough, the 42-year Pennsylvania warehouse worker also had to deal with a malfunctioning heart. That alone could have killed him.
But doctors at the Mercy Catholic Medical Center in Pennsylvania were able to save Smith in no small measure because of a tiny heart pump.
Known as the Impella, that device received an emergency use authorization from the FDA to treat coronavirus patients only weeks before.
Of course, Smith credits the medical team with saving his life. But he’s quick to point out that the Impella played a big role in it all.
And Bill is not alone.
These kinds of heart complications are reported to affect as many as 10% of COVID-19 patients.
Fortunately for tech investors, there’s a lot more going on here than a feel-good feature story.
The medical device market is worth $625 billion, and the company behind Impella can grab a big chunk of that.
