By Matt McCallApr 18, 2017
Is technology really a next-generation investment? There are a lot of people who view it as “been there, done that.” Many investors made a lot of money when the NASDAQ peaked in 2000, and while the index is once again back at new highs, I would agree that some areas of tech – especially big tech – are not where you want to be right now.
But that doesn’t mean all of tech is past its hay day. In fact, I see a whole lot of opportunities brewing here both now and well into the future. I’m talking about the next generation companies at the forefront of the revolutionary technologies that you may not think much about or maybe even have never heard of before. Think of the chip in the cell phone you carry with you all around the world. You know the name of the phone company, but do you know the name of the company that manufactured that chip? More often than not the answer is no.
That’s where the opportunities lie. The next Technology Revolution has already begun – but don’t worry, you haven’t missed out on it yet. This is another one of those powerful mega-trends that is going to last for the next decade if not longer. We’re only in the first or second inning, so there is a lot of money to be made.
This Technology Revolution is much more than just the Internet of Things (IoT). It’s the little technologies – think sensors – that are changing the world as we know it. We can turn off the lights with an app on our phone. Pay for groceries without taking cash or a credit card to the store. And one day doctors will be able to learn our full health history by simply looking at a chip in our arms. These are the kinds of technologies that are going to lead the revolution forward.
The amazing thing is that these innovations are all around us. They impact our everyday lives, and I’m finding a lot of big investment ideas everywhere. My eyes and ears are always open because they have to be. The next time you walk down a busy city street take a look around you. Nearly everyone you see is holding on to something that’s connected. Ask yourself how those things are connected, and that’s where you’ll find the next big investment theme. Simple as that may sound, Wall Street is too stuck in its big, comfortable ways to do that.
As with everything we do in NextGen Investing, charts are also a huge help here not just in identifying buy and sell points with specific stocks but in alerting us to trends. You’re not going to hear about it when money starts flowing into these smaller areas, but you will see the charts moving. That’s why I’m doing scans every day. If and when I find a little-known company on the move, I always look into it, and I may just find out it’s a big part of the revolution.
A lot of this may sound futuristic and scientific, and while many of these trends will take years to fully play out, the next generation companies that are leading the charge in this new Technology Revolution really do have the potential to make us a lot of money over time.
There are so many different themes and opportunities in this space, and I can’t wait to tell you all about them in the following articles. Stay tuned!
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