My wife and I recently helped our daughter Jordan find a reliable used car.
And since Jordan only recently got her grad degree, I have to say she was pretty price sensitive.
She had roughly $9,000 to put down and wanted to limit her payments to about $100 a month, so there wasn’t a lot of wiggle room on cost. She bought, a 2009, one-owner, fully loaded Honda CRV with only 45,000 miles on it.
I’m bringing this up to you because I think our recent experience illustrates a very important point for tech investors.
When it comes to putting your money in stocks that can crush the market, don’t let high “sticker prices” warn you off of great opportunities to build lasting wealth.
Instead, you have to focus on the long-term upside. You know, it’s the old saw by Warren Buffett that price is what you pay but “value is what you get.”
And that really comes into play with a firm that is pioneering the field of robotic surgery.
At first glance, $600 a share seems steep. But this is a stock that could hit $1,800 a shares in as little as seven years.
If you are just not discovering the earning potential of Amazon.com Inc. (AMZN), than you have a lot of reason to be excited..
And I say that because I am still seeing a huge amount of upside ahead.
Let’s start with item number 1. When we spoke on January 24, I noted that much of Wall Street was cool to the stock for years.
But I have a more current example of a high profile stock “guru” who missed the boat completely. And not that long ago.
When AMZN crossed the $1,000 mark on May 31, 2017, Jim Cramer, went on TV to bash the stock. The host of CNBC’s Mad Money said “psychologically” $1,000 is a lot to pay for a stock he felt was getting ahead of itself.
The stock has more than doubled since then, reaching a closing high of $2,021.
If you want to become a high-tech millionaire – and I sure hope you do – it pays to have a little bit of foresight.
Let me explain. Back in 1994, a former hedge-fund manager decided to launch an online bookstore. Considering he was not the first to do so, our executive found little traction on Wall Street where his idea sounded boring.
He tried to convince the so-called “in-crowd” that books were just the start. This was a technology company looking to change all manner of online transactions.
But even in the midst of the dot com boom, few listened. That’s why the stock was trading for less than $2 in May 1997.
Back on May 26, 1997, this game changer was trading for only $1.50 a share. It hit a recent closing high of $2,021 last July 15.
That’s a 134,633% gain, enough to transform $10,000 into $13.5 million.
There’s no doubt about it. We are living in a time of astounding financial opportunities.
Last year, was a great one year for the average retail investor, continuing the epic bull market that began in March 2009. As we move into 2020, it looks like it has the potential to keep right on going.
The terrific economy that we’ve had has helped propel stocks to record highs. Unemployment remains at 50-year lows as real income adjusted for inflation is moving up for millions of Americans.
In a case like this, you’d think all you have to do from here on out is just coast on autopilot. After all, the bellwether S&P 500 was up roughly 28.9% for the year as of the close on December 31.
But, as impressive as that sounds, you could do much better in 2020.
That’s because the S&P 500’s numbers for the year are nothing compared to the gains members of my monthly tech investing newsletter, the Nova-X Report, scored in 2019.
Indeed, our three best performers for the year more than doubled the S&P.
I’ve been writing about 5G high-speed cellular networks for more than five years now, and I couldn’t be more excited for what’s ahead in 2020.
Sure, 2019 saw a fair amount of progress in rolling out this advanced new platform. The nextgen mobile network is available in a few markets.
But we have a big catalyst coming in fall 2020. That’s when Apple Inc. (AAPL) unveils a new iPhone that’s 5G native.
Don’t underestimate the importance of this move. Apple sets the standard for the rest of the sector.
5G will be important for the entire tech ecosystem in the year ahead, and it’s just one major catalyst that investors should track. There are key developments with chip stocks and beaten-down software and cloud players that all matter to your portfolio.
Without semiconductors, there is no American economy. That’s because the American economy is driven by tech, and tech is driven by semiconductors. After an outstanding jobs report, big media is finally coming around to my point of view that tech investors have lot of upside ahead, and very few reasons to be worried. In times like these, it’s important to look for the pick-and-shovel plays that will be supporting development in as many breakout sectors as possible. The right semiconductor plays will be able to profit from the rollout of 5g wireless, along with advances such as cobots, robots that cooperate with humans in the workplace. With new breakouts just around the corner in 2020, you’re not going to want to miss the firms that will be holding it all together. Click here to watch.
I’ll never forget sailing with my buddies on San Francisco Bay back in the summer of 2016.
Both are high-tech investors who were absolutely convinced that Donald J. Trump had exactly zero chance of becoming president.
But I strongly disagreed. That’s because I follow these things closely since big political elections can affect the stock market, not to mention every sector of the economy, including high tech.
On top of all that, I was a young auto analyst in Detroit back in 1980 when Ronald Reagan was elected. I personally talked with union members who crossed party lines and helped put Reagan in the White House.
I told my sailing buddies that the same dynamic was at work in 2016. I didn’t just predict that Trump would win, I walked them through several of the key districts and showed them exactly how he would do it.
Here I go again…I believe that Trump now has a much better chance of getting reelected than he did before the Democratic-led impeachment hearings began.
Editor's Note: These past few weeks, I've been updating you on a special research project that I've been working on. Well, now, my research is finished and it was well worth the effort. I've pinpointed a tiny company, currently trading for...