Investing has always been my passion. The way Wall Street does it has not.
Nearly 20 years ago, I took my first job as a stock broker, excited as can be to help my clients make money by doing what I absolutely love to do — uncover great stocks. It didn’t take long for that excitement to turn to discouragement.
First of all, I realized that most brokerage firms recommended the same stocks, most mutual funds held the same stocks, and most investors owned the same stocks. I was face to face with the proverbial herd mentality, and boy was it ever true. I learned that Wall Street is just too lazy to find the best stocks, preferring to stick with what they know and do what they’ve always done. Their concern is making commissions and getting new clients, which means they are salespeople, not stock experts. I saw up close how investors paid very high fees for “expert” advice, but nearly every investor ended up owning the same 10 stocks!
I took my passion to radio and TV for a while, and when I started my TV career I was privileged to see into Wall Street even deeper. I shared the camera with some of the most well-known investors of the last century. I learned a lot from many of them, but it was still amazing to me that some of the old Wall Street guys would make hundreds of millions of dollars per year — yes, you read that right — and their best stock idea was one of the largest companies in the world that almost everybody owned anyway.
I knew there was a better way, that there was big money to be made outside of those same stocks that everyone had in their portfolios. The next great companies that could make a difference in people’s lives were out there, trading among the thousands of stocks that Wall Street ignored.
Those were the stocks I started to cover, and the ones I wanted my clients in when I started my own financial firm. I’ve been doing it for the last 13 years now, and I see more than ever how this new way of looking at Wall Street is better than the old way. Finding those next great companies also meant going about things differently, so I developed a multifaceted approach that big old Wall Street was too lazy to try — the next generation of investing.
Next-gen investing goes beyond the myopic focus of Wall Street. The big firms settle on one way of researching stocks, and that’s all they do. I equate my approach to a three-legged stool that incorporates fundamentals, charts and technical analysis, and things like intangibles, catalysts and themes that won’t show up in the stock screens used by 99% of Wall Street. I’ve found that this new way of investing increases our winning percentage, keeps our losses infrequent and very manageable, and enhances our ability to find the next big winners.
At first glance, technology may not seem like a next-generation investment. In fact, there are a lot of people who view it as “been there, done that.” It made investors plenty 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 still a lot of money to be made.
This Technology Revolution is much more than just the next hot product. 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 going 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 NexGen Investor, 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 have the potential to make us a lot of money over time.
Now, let’s walk through a few exciting tech themes in this space.
Let’s begin with a simple but powerful trend — one that you may already be using in your everyday life! I’m talking about mobile transactions. Consider this: consumer spending accounts for two thirds of the U.S. economy. That means there are millions of transactions taking place every single day, but the way those transactions are being made is undergoing a major transformation. We already saw the shift from checkbooks to credit and debit cards. Now we’re seeing a shift from plastic to technology.
By the end of this year, the number of mobile phone users is expected to reach 4.7 billion, and did you know that 70% of transactions are already done electronically? By the end of 2018, it is estimated that mobile device transactions in U.S. stores will total $189 billion, up from a mere $1.8 billion in 2013. That’s a whole lot of growth to capture.
But these kinds of transactions aren’t solely between consumers and businesses. There are also person-to-person money transfers via mobile apps like Venmo, which is owned by PayPal (PYPL) — a name I also like for its ties to the mega millennials trend.
No longer is there a need to carry cash, credit cards or even go to the bank. Nearly everything can be done on your phone, whether it’s sending your friend $15 for spotting lunch or paying the sales clerk at the grocery store for your large haul. Simply click, tap and go. Payment has never been simpler or more profitable for savvy investors.
Another powerful tech trend is the cloud. That may not seem like a next-gen investment theme since the term is now well-known as something other than what’s in the sky. But this remains a fast-growing space as more and more data is being created. As a result, new storage demands are coming up all the time and that’s where our next-gen opportunity comes from.
As a society, we have become accustomed to having everything we could possibly need at our fingertips. We’ve already talked about how this has played into mobile payment technology, but it also has a lot to do with storage. Credit card information, passwords and other private and personal information is saved on the cloud. And millennials are storing everything from pictures to files to basically their entire life stories there. Without the cloud, none of this would be possible.
According to research firm IDC, worldwide spending on public cloud services has the potential to more than double from $70 billion in 2015 to more than $140 billion by next year. That’s a whole lot of potential to capitalize on, and there are plenty of companies vying for their spot at the top of the industry.
One I like in particular is 2U (TWOU), a leading cloud-based Software-as-a-Service (SaaS) company that works with nonprofit colleges and universities to deliver their education to their students no matter where they are. Think prestigious schools like NYU, Yale and UNC. These are big, well-known universities that offer online degrees, and they’re all customers of 2U. The stock is up nearly 40% so far this year and trading at all-time highs, which is why we use the charts to identify optimum buy and sell points, but overall I continue to see plenty of upside ahead.
Here’s another trend you may have heard of: the Internet of Things (IoT).
Each day the world becomes more connected. At first it was our cell phones, which allowed us to get in contact with someone on the other side of the world within seconds. But now it’s expanded to include so much more. We can close our garage door from our phone if we realize we forgot when we’re already out and about. We can turn off lights and program our thermostats.
The Internet of Things has even found its way into the workplace — nearly every industry has the ability to use IoT to improve production and reduce costs. And according to Gartner, over half of all new business processes will contain devices connected to the internet.
The worldwide market for IoT platforms reached $298 million in 2015. With an estimated compound annual growth rate (CAGR) of 33%, IoT platforms are one of the fastest-growing segments in the market. In fact, they’re forecasted to become a $1.6 billion opportunity by 2021.
Even municipalities that haven’t been big spenders over the last few years are making a major push into the Internet of Things. They’re expected to spend $133 billion in 2019, up from only $36 billion in 2014. Just think how great it would be if sensors could tell stoplights to reroute cars when there is traffic!
But the biggest industry within the IoT space has to do with automobiles. We’re already seeing cars with online capabilities, and by 2020 there are expected to be 250 million vehicles on the road that are connected to the internet. Right now it’s all about the car being able to collect and use data to share with others, but the eventual endgame is autonomous vehicles.
One of my favorite plays in this niche sector has to do with sensors that are used throughout the IoT process. Sensata Technologies (ST) is a Netherlands-based company that is the world leader in sensors and controls. Fundamentally, the company is undervalued versus its peers and the overall market, trading with a forward P/E ratio of 11.8 and PEG ratio of 1.13. Technically, the stock has been choppy and underperforming the market, making now a time to buy before the next leg higher.
It sounds like a futuristic word, but this is what the Technology Revolution has the power to do sooner rather than later! I love the growth potential here, especially because it expands to areas you may not have thought of.
One trend that may not initially come to mind when talking about mainstream technology is medicine. But the next-gen healthcare space is a truly exciting one for patients and investors alike.
Nobody enjoys going to the doctor. You have to take time out of your day to drive to the office and sit in a waiting room for who knows how long, only to receive an illegible slip of paper for antibiotics that you then have to waste half a day at the pharmacy just to get filled. There’s nothing fun about it.
But that’s where this new trend in technology comes in. Virtual doctors’ offices are the future, and they represent an experience that will not only benefit consumers, but also insurance companies and the doctors themselves. Think about it. More patients equal more money. It’s a win-win situation.
Teladoc (TDOC) is the perfect example of how this next-gen theme is already making an impact. The company was founded in 2002 with a goal of tackling healthcare’s three biggest issues: access, cost and quality. Today, it’s the leading provider of telehealth medical visits in the country. TDOC boasts being able to put you in contact with a licensed doctor in under 10 minutes — whether it’s via the phone, internet or mobile app.
The company already has more than 15 million users and a 95% satisfaction rate. Sure, it may not take off with older generations used to seeing their doctor in person, but the millennials, who are used to having everything they need at their fingertips, are more game for a remote visit. Remember, we’re looking at the areas that will drive the next generation of profits on Wall Street and this is definitely revolutionary technology.
Virtual doctors’ offices aren’t the only interesting thing going on within the theme, though. As the Baby Boomers age, the demand for new and better healthcare (everything from drugs to medical devices) is growing rapidly. And President Trump has already stated that he plans to speed up and simplify the FDA’s drug approval process. This is great news for all biotech companies, but specifically the smaller ones that Wall Street isn’t keeping as close of an eye on.
Then there’s the wearables space. More and more often I’m seeing people walk down the street with some sort of fitness tracker on their wrists. Whether it’s a Fitbit (FIT), Apple (AAPL) Watch or some other brand of tracker, there are all kinds of dynamic devices out there that allow users to monitor all their vital health stats. As new products come on the market, investors will have more options to profit from.
There’s no question the future is changing, and I suspect healthcare is going to look a lot different down the road thanks to the ever-growing tech space.
One of my favorite mega trends that investors simply can’t afford to ignore is the millennials. We are witnessing the beginning of the greatest wealth transfer in U.S. history from the once-dominant Baby Boomers to their children, the rising millennial generation (generally born between 1980 and 2000). And investors who are shrewd enough to realize the immense potential this demographic shift holds are in an outstanding position to benefit early.
I love talking about this trend because whether you are a retiring Boomer or a millennial yourself looking to build a portfolio, there are so many exciting ways to profit. There are three million more millennials than their post-war parents, with the oldest just hitting their mid-30s and the youngest still in college. They’re getting ready to take the economic spotlight as they flood the workforce, start families and enter their prime earning years.
According to a report conducted by Accenture, millennials spend roughly $600 billion each year and by 2020 that number will grow to $1.4 trillion annually in the United States alone. This would represent 30% of total retail sales. Wall Street may not be looking there quite yet, but I’m not waiting and you shouldn’t either!
So the question becomes — what are the best ways to play this impending economic boom? And if you’re part of it, how can you profit from the trends you already see growing around you every day?
Speaking of brick-and-mortar retail, virtual shopping is quickly replacing a trip to the mall. In 2016, online purchases took over buying at physical stores, with shoppers making 51% of their transactions online compared to 48% in 2015 and 47% in 2014. In addition, 44% of smartphone users made purchases through their devices versus 41% a year ago.
It’s no secret that big-name brick-and-mortar retailers have struggled recently. Stores like J. C. Penney (JCP), Macy’s (M), Nordstrom (JWN) and Kohl’s (KSS) have reported a dip in sales while Amazon (AMZN), on the other hand, is still seeing double-digit gains.
Online sales in the United States are expected to reach $523 billion in the next five years, up 56% from jut $335 billion in 2015, mainly driven by purchases on mobile devices.
Shopify (SHOP) will be one of the biggest winners in the space, as it provides an ecommerce platform to retailers and individuals who are selling their products online. The company currently powers more than 377,500 businesses in about 175 countries, and some of its customers include Tesla (TSLA), General Electric (GE) and Nestle.
SHOP has come close to doubling its annual revenue each year since 2013 — a truly remarkable feat — and I think that growth only continues from here.
Millennials have grown up in a wired world, and their biggest online presence comes from social media. Heavy hitters like Instagram, Snapchat (SNAP) and Twitter (TWTR) attract around 20 million millennial users every day! It’s used in a variety of ways, but the common denominator is staying connected to what others are talking about. In fact, social media has changed the way our society communicates and gets their news … even the recent presidential election was significantly impacted by 140-character tweets.
One of the most obvious plays here is Facebook (FB). You could make the case that this is the kind of pick old Wall Street would make, but don’t discount it just because it’s been around awhile (or because your parents use it). While Facebook may be a pioneer of social media, it isn’t resting on its laurels nor is it rolling over to other rising social media apps. In February, the company launched new employment posting and application tools that connect businesses and job seekers directly on the social network, creating some competition for LinkedIn (LNKD) and Glassdoor. It is also coming out with a television service that lets you play videos through smart TVs, and has ventured into the virtual reality craze through its ownership of Instagram. These growth prospects bode well for the stock, which is already having a strong 2017 on the heels of a solid fourth-quarter earnings report.
One of the hallmarks of next-gen investing is a multifaceted approach to making money, and FB is a good example of that because it is also a component of my next pick, one of my favorite ETFs right now — the Global X Social Media ETF (SOCL). ETFs are a great way to play market trends, since they give you exposure to multiple companies that are driving the action but don’t carry the same risk that can come from holding a single name. In SOCL’s case, social media’s biggest names serve as its top 10 holdings, including FB, TWTR and China-based Tencent (TCEHY). Not only does this give you diversification, but some global exposure to this wide-ranging trend. Tencent, for example, is not traded on the U.S. exchanges, so the ETF gives you safe and inexpensive access you otherwise would not have.
(If you really want to get slick, you can buy an ETF and then invest in the strongest stock or two within that ETF as profit boosters. We’ll talk more about that in a future report.)
Staying with the communication theme, around 86% of millennials own a smartphone and use it to bring the lifestyle they want right to their door. As a result, the service industry is ready to take off, opening up other areas we can profit from. Take food, for example. It’s as old as the human race itself, but now we have a next-generation way to make money. Millennials will eat out 177 times in a year, compared to 146 times for other demographics, but that doesn’t always mean it will be in a restaurant. GrubHub (GRUB) provides an online and mobile platform for pick-up and delivery orders, connecting diners to over 40,000 local restaurants in 1,000 cities. The ease of ordering online or through an app, as well as taking advantage of deals on otherwise pricier hot spots, makes this company a millennial favorite as well as a personal favorite — I live off GrubHub whenever I stay in New York!
Even fitness has a mobile component for millennials. MINDBODY (MB) operates a cloud-based software and payments platform for the wellness industry. Gone are the days of sticking with one gym membership. Millennials like options, and MB gives it to them. Simply download the app to find and book fitness classes nearby, rate and review different studios, find deals on new exercise crazes, manage your workout schedule and track progress. It’s also great for finding fitness options while traveling — I’ve even used it myself on the road! This young company is an intriguing investment option as it should be profitable next year and earn up to $0.62 a share by 2019.
Let me wrap up this report with one final pick, one that encompasses all the niche themes related to the millennial boom that we talked about today. The Global X Millennials Thematic ETF (MILN) is designed to benefit from the rising spending power and lifestyle preferences of this generation. It’s made up of companies that encompass everything from social media and entertainment, to education and employment, to travel and mobility. Its top holdings include the heavy hitters you’d expect — Apple (AAPL), eBay (EBAY), Facebook (FB), Netflix (NFLX), and Priceline (PCLN) to name a few — and is a good way to give your portfolio some millennial flavor.
Finally, you get to choose a high-profit style of investing that suits you… not one that gets forced on you.
Some investors like to buy-and-hold.
Others like to get in, make quick, smaller gains, and get out.
Today, you get the opportunity to put this NexGen investing concept to work for you regardless of your investing style.
Let me fill you in on the benefits of each of these two memberships…
This NexGen System is geared towards investors that are looking to make massive, double- and triple-digit gains from this long-term strategy that exploits megatrends over time.
Generally speaking, we’ll hold these recommendations for 6 to 12 months... sometimes shorter if the opportunity plays out faster… sometimes we'll hold on longer if our profits continue to soar.
Based on my back-tested results, our performance here can easily translate into 30% to 40% annualized returns each year.
Here are some examples of this longer-term NexGen System at work:
Click here now for more details about the features and benefits that come with a risk-free Charter Membership to NexGen Investor!
Now, let me introduce you to the other NexGen membership…
Let me give you an up-close look at my NEXGEN TRADER.
Unlike the longer-term nature of NexGen Investor, this system is geared towards traders that are looking to capitalize on near-term movements as a megatrend climbs higher.
It’s a more aggressive way to make money if you like faster-paced trading — and want to close out 3 or 4 trades per month.
The hold time here is a matter of weeks with the goal of delivering a 75% to 80% annualized return.
Here's a look at this NexGen System at work:
Click here now for more details about the features and benefits that come with a risk-free Charter Membership to NexGen Trader!
Regardless of the service you pick, my NexGen investing system will change your life… I can confidently say that because it changed my life.
And here’s the best news yet…
My goal in NexGen is simple. To help Main Street investors take a stand against the mediocre returns that "Old" Wall Street is dishing out.
I’m about delivering performance. Period.
So much so that I’m going to put my money where my mouth is.
Regardless of whether you select NexGen Investor or NexGen Trader today, here’s what I’m prepared to offer you today:
NexGen Promise #1: Fresh NEW Stock Recommendations Every Month
To be specific, at least 1 to 2 pick in NexGen Investor… and at least 3 to 4 picks in NexGen Grader.
That’s going to be a walk in the park… how can I be so confident about delivering a consistent stream of new stock recommendations each and every month?
Simple. My current "narrowed" down Watch List has 73 stocks that I’m ready to pounce on any day now.
With that many stocks on my NexGen radar… giving you two, three or four new picks a month is a piece of cake.
NexGen Promise #2: Your Complete Satisfaction is MANDATORY
I’m not just trying to sell you a newsletter here. That’s not my style.
I want to make sure you have a proven strategy in place to profit from the megatrends that are sweeping our nation.
Megatrends that are on the brink of handing investors double- and triple-digit gains in stocks that WILL be the next Apple… the next Tesla… the next Netflix.
I’m going to educate you about these incredible megatrends… I’m going to coach you through the process of identifying the best stocks in these megatrends… and then I’m going to watch you bank tremendous gains from these opportunities.
That’s why I’m giving you a full 30 days to see my NexGen system in action. If you don’t like what you see, then I insist you get 100% of your money back… no questions asked.
NexGen Promise #3: Lifetime Satisfaction
Even after your first 30 days, your satisfaction is very important to me.
So if you decide my NexGen Experience just isn’t right for you, I will personally make sure you get the balance of your membership fee refunded to you.
That’s how important your satisfaction is to me… but also just how confident I am that my NexGen system will deliver mind-blowing results.
So please don’t hesitate — not even for a second. Because the only risk you face is missing out on these tremendous profits!
Click the button below to select the NexGen System that is right for you:
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I can guarantee you this is the best offer you will see this year to go from average returns to supersized profits.
So I’m inviting you to make the choice… the right choice… and join me now.
I want you to start banking double- and triple-digit winners no matter whether the markets are in a boom OR a bust.
Here’s to NexGen Profits,
Editor, NexGen Investor and NexGen Trader
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