Is Now the Right Time to Get Into Tech?
Many of the investors I talk with would like to get into tech stocks, but they're nervous. They may have owned shares that went south in the past. Or maybe they're overwhelmed by all the rapid changes.
Believe me, I get it.
If you've hesitated at all to invest in tech stocks, you're missing out on some of the biggest gains in the market today.
You may want to consider the following:
Over the past several years, innovation of new technologies has accelerated at an exponential rate. It seems like only a few years ago, we were dreaming about things like video phone calls, voice-activated appliances and self-driving cars.
All 3 are now science fact.
Not only have these shiny new products and services captivated our imaginations, but they've also been a major force powering corporate earnings and the historic bull market run.
Despite the indigestion investors have experienced over the past few weeks, the tech sector is leading the pack in 2017. The S&P 500 enjoyed the best earnings we've seen in more than 5 years in Q1, and Q2 is already looking strong.
In fact, the recent weakness in this space has created even more compelling opportunities to buy.
Demand That Keeps Growing and Growing
Looking at the tech landscape, there are 3 reasons for stocks to climb.
More . . .
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4 Stocks to Ride Today's Tech Breakthroughs
There is one component no tech company can survive without. Demand for this critical device is poised to grow faster than ever, making it arguably the smartest way to invest in the technology, bar none.
Naturally, stocks associated with that component are in high demand. But there are 69 of them - which should you buy?
Zacks just released a Special Report that covers this space and pinpoints 4 trades with exceptional upside. You are invited to download it until Sunday, July 9.
See the Stocks Now >>
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1) Industrial demand for tech-related products and services has never been greater. New technology brings in increased productivity, collaboration and safety. And with the Internet of Things and other applications still in their infancy, you can expect to see even bigger strides in the days to come.
2) Consumers are adding tech toys to more and more areas of our lives. It's not just cell phones; we have smart watches, virtual reality devices such as Facebook's Oculus Rift, and smart home devices like the Amazon Echo or Google Home. (In his letter to shareholders in April, Jeff Bezos noted that his company can't keep Echo devices in stock.)
3) Researchers are continuing to push further into territory previously unimaginable.
For example, companies are developing technology to not only map out the human genome, but to edit it. Someday, they may be able to simply delete diseases right out of our DNA!
Computers and machines are now being built with ability to learn independently, without being programmed. This "machine learning" enables computer programs to change when exposed to new data.
You may already be familiar with IBM's Watson, the most visible example of machine learning. Watson became famous for vanquishing human contestants on Jeopardy back in 2010. Today, the AI powerhouse analyzes data for professional sports, performs facial recognition and other security tasks, and countless other functions.
Speaking of data, Global internet traffic has quintupled over the past 5 years - and it's expected to double again in the next 2 years. Data centers are investing hundreds of billions of dollars to upgrade their infrastructure to handle the load.
Where this kind of innovation meets ever-increasing consumption, there is potential for incredible growth.
Which Tech Stocks Should You Pay Attention to Right Now?
As you can see, the tech sector is already having a huge impact on almost every segment of society. The number of exciting possibilities will only increase as more companies and industries increase their use of breakthrough technology in the days to come.
As an investor, you can certainly try to target companies that are the end users of the latest developments, but why not focus on one thing each of these companies has in common?
One single component basically drives the success of the entire tech space. Tech companies literally cannot function without it. That means the demand for these devices is likely to grow at least as fast as the tech sector as a whole.
The tech sector is hot, and this industry is the molten core.
There is a catch. Sixty-nine different companies build these all-important devices. Picking the right one can be difficult.
But not to worry. Today, I invite you to download a just-released Special Report revealing what this critical component is along with our 4 favorite stocks to profit from the demand. All told, it's a massive $386 billion investment opportunity, and there's still time to get in on the action before the next big innovations really take off.
I encourage you to check out this report right away. Your chance to access our report ends midnight Sunday, July 9.
Get the Report Now >>
Best,
Brian
Brian Bolan is our aggressive growth expert and the editor of the Zacks Stocks Under $10 portfolio.
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