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Like most Americans, I’ve been closely watching the presidential race. And I’m sure you have, too. We all know there are sure to be policy changes following the outcome, and we want to position ourselves to profit from them.
Martin Weiss and his wife Elisabeth feel the same way. What’s more, they have entrusted me with $1 MILLION of their own personal money to manage.
That’s why I was excited to participate with Dr. Weiss in a very special interview last week. Newt Gingrich, former Speaker of the House and current consultant to industry, gave us some valuable insights into three industries that have the biggest growth opportunities when the elections are over.
In last week’s Money and Markets column, I explained why Newt believes the potential in healthcare is enormous. And I named four companies I think are the cream of the crop. One of them I already hold in the Weiss Million-Dollar Ratings Portfolio.
Today, I’ll reveal the second sector Newt said should bring big profits after the election …
Technology—
But Who Will Lead the Way?
There is little doubt that this sector can give a nation a huge advantage over its competition. That means as an investor you should consider how the winner on November 6 plans to tackle issues like intellectual property protection, and how much in subsidies our country gives to favored sectors.
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“If I had asked my customers what they wanted, they would have said a faster horse.” — Henry Ford |
Newt agreed and said,
“That’s one thing to think about. The second thing to look at is, what are the unmet needs, many of which people may not even know they have yet.
“Very few teenagers realized that they needed an iPod before it was invented. Very few young people realized that they needed to send text messages before it was invented. All of a sudden, they have this passion and desperate need to do something that didn’t even exist the day they were born.”
He also believes …
“The other kind of wild-catting area that we’re just beginning to see break wide open — and it will be one of the great revolutions of the next 20 years — is online learning in ways that is going to blow apart the giant cost of higher education.
“And there are a whole range of for-profit companies. I was just talking with Chancellor University and with Kaplan, [as well as] a number of other schools … and we have no idea how this is going to evolve. If you go to Khan Academy, which has over 3,000 hours online for free, you’re seeing the beginning of a revolution.”
For Martin’s money, my focus in the Technology sector is on the business side of tech products and services. And Newt sees loads of opportunities there, too …
“The last area to look at is, frankly, anything which reduces cost. We just have been working with a little company called New Tech. Their specialty is putting together backgrounds for small businesses, so that you can outsource virtually all of your cost of running your small business. They are an example of something which is going to grow very dramatically, which could be applied to local governments.
“At a time of very difficult economics, when I find a way to take 10 percent, 15 percent, 20 percent out of the cost of running my business, all of that goes to my bottom line, makes me more survivable and increases my profit margin. And I think any business you can find which seems to have a very solid capacity to lower cost is worth your exploring, because it could suddenly come up with explosive growth.”
One of the tech stocks I bought for Martin is doing exactly that. It’s leading the way in implementing more-efficient computing platforms (e.g. the “cloud”) for companies to use in their operations.
This tech’s customers use its services for lower-cost number-crunching and storage to cut costs. And they use data collected to design consumer products based on insights obtained through quicker data analysis.
Of course, out of fairness to my paying members, I can’t tell you the name of the stock. I’m sure you understand. However, I will give you the name of …
The One Tech Stock
I’ve Avoided
I have avoided probably the most popular stock in the world — Apple (AAPL — Rated A-) — not because I don’t like the products. They are some of the best-designed out there. No, I avoided it because its products can — in a sense — be copied.
Hot products will invariably yield hot stocks in the companies that make them. But copycats quickly gain market share as the product matures. Just look at what has happened with smartphones and tablet computers.
Now, if I don’t know whose new gadget is going to be the best, yet I love the technology, the product, etc., my best move is to invest in a company that makes the “guts” for both the market leader (AAPL in this example) and the upstarts.
And I found a great stock for Martin and Elisabeth in that area, which I intend to ride to a much higher price per share over the next year or so. The firm makes the flash memory products that are necessary to give hand-held gadgets enough capacity to bring us their magic.
What’s great about this concept is that flash memory doesn’t care where it is placed, so it could end up in the originator and the copycats. Thus, without even picking a gadget winner, I win the gadget game!
How I Pick the Best Opportunities
in Technology
Technology is the driving force behind nearly all of the productivity gains coming out of corporate America right now.
Cloud computing is changing the way companies store and distribute information …
Smart robots are changing the face of manufacturing, which according to the Boston Consulting Group has the potential to bring over 6 million high paying factory jobs back to our shores …
And mobile technology is totally transforming the way we work and spend our leisure time seven days a week.
Catching just one right company at the right time could easily double, triple or even return 10 times your money!
But here’s the thing.
These big opportunities also come with big risks.
Martin is very conservative. He’s concerned about the global debt crisis, the looming fiscal cliff, and the stock market as a whole.
So there’s only one way he will let me invest in this sector — or any other sector: By faithfully adhering to the conservative ratings he developed over a decade ago.
Thanks to these ratings, which we now distribute with TheStreet.com, you can easily capture the upside of the market … but you also limit your downside by only investing in the strongest, most-profitable companies today.
So why are we so confident in the ability of these ratings to shuck off the garbage and pick out the gems … and do so with consistent accuracy in both rising and falling markets?
The answer is simple: Because we follow three simple steps:
First, we avoid the stocks that are most likely to underperform in good times … or crash in bad times.
Second, whenever our proprietary, early alert system tells us the market is going to suffer a correction — or worse — we make sure we have solid hedges in our portfolio.
Third and most important, we buy only the cream of the crop — investments that we believe, according to our system, are likely to greatly outperform in good times or bad.
In next Saturday’s Money and Markets column, I tell you about the third sector Newt said should bring big profits after the election. So be sure to watch your inbox.
Best wishes,
Don
You write so hnosetly about this. Thanks for sharing!