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Although I speak with Money Map Press Editorial Director Bill Patalon almost every day, it's been some time since we actually engaged in a full-fledged question-and-answer session for your benefit.
In today's conversation, Bill asks me about my outlook for tech stocks and helps me outline a risk-management strategy every investor should follow (especially now). And together we highlight the half-dozen tech stocks that will point you down the road to meaningful wealth.
Bill Patalon (Q): Michael, the Nasdaq Composite Index recently eclipsed the 5,000 level for the first time since the dot-com bust-up of 2000. And that brought the gloom-and-doomer crowd out of the woodwork in droves.
But you have an interesting take on this. You've said that – while volatility will likely increase in the near term for all stocks – you are more confident than ever for the longer term investment outlook of Silicon Valley and high technology.
Michael Robinson (A): That's right. In all the years I've been around Silicon Valley, I've never seen so much innovation reaching a point of critical mass all at the same time. A recent research report I read said that, on average, we're seeing roughly $1 billion worth of new tech opportunities coming out per week.
We are well beyond what I call the "Tech Tipping Point." Bear in mind that, back during the whole dot-com saga of 2000, most folks had dial-up Internet. Now we have broadband that is at least 100 times faster. Which gives us Netflix Inc. (Nasdaq: NFLX), Pandora Media Inc. (NYSE: P) and such Apple Inc. (Nasdaq: AAPL) services as iTunes and Apple TV.
There were no smartphones, no tablets and no connected car. Amazon.com Inc. (Nasdaq: AMZN) was just selling books. There was no such thing as cloud computing. And e-commerce was hardly the threat to brick-and-mortar stores that it is now.
Despite these differences, the stock prices we're seeing for technology firms today remain quite reasonable…
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About the Author
Michael A. Robinson is one of the top financial analysts working today. His book "Overdrawn: The Bailout of American Savings" was a prescient look at the anatomy of the nation's S&L crisis, long before the word "bailout" became part of our daily lexicon. He's a Pulitzer Prize-nominated writer and reporter, lauded by the Columbia Journalism Review for his aggressive style. His 30-year track record as a leading tech analyst has garnered him rave reviews, too. Today he is the editor of the monthly tech investing newsletter Nova-X Report as well as Radical Technology Profits, where he covers truly radical technologies – ones that have the power to sweep across the globe and change the very fabric of our lives – and profit opportunities they give rise to. He also explores "what's next" in the tech investing world at Strategic Tech Investor.