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With Greece and the Eurozone teetering on the edge, a lot of investors are understandably concerned about the markets and their investments – and I don't blame them a bit.
News of Greece's deepening woes has added to the drumbeat of worrying storylines: slowing economic activity in China, fuzzy economic numbers in the U.S., and worries about a Fed interest rate hike.
But the truth is, the "sparks," or catalysts I research, can take shape under small-cap shares no matter what's happening on the front pages. And the mid-year mark on the calendar – right when the "pundits" are poised to let loose the bears – is the perfect time to apply some of the sparks I'm tracking.
You'll see that my outlook for the second half of 2015 looks very different than what you'd expect from the news.
In fact, what I'm seeing suggests that 2015 may be the most profitable small-cap investing climate we've seen since the late 1990s. Here's why…
The Biggest Profit Trends for the Second Half of 2015
The trends I'm about to show you all appear very different on the surface, but what ties them together is "sparks.
Understanding these trends gets us into position early, often before Wall Street realizes what's happening. Once that happens, these companies can get beyond the reach of investors – at least those who lack billion-dollar bankrolls and private equity connections.
For investors like us, early-stage profits can be big. Here's where my research indicates those profits will hit in the second half of the year.
Trend No. 1: Online Infrastructure
The spread of streaming video services like YouTube.com or Netflix Inc. (Nasdaq: NFLX) means we'll see surging demand for companies involved in building the fiber-optic networks than can deliver these bandwidth-intensive services.
Trend No. 2: Smart Device Proliferation
The rise of smartphones is just the beginning. We're going to see smart "everything" soon: smart houses, smart cars, and smart medical devices. There's even a company developing smart toothbrushes. These devices are all going to be connected, which will drive demand for technology that can enable that connectivity.
Trend No. 3: Solid-State Drives and the "Cloud"
Old-school "spinning disk drives" are soon to be a thing of the past. The future belongs to memory and storage devices that have no disks to drive: no mechanical parts at all. The exponentially increasing storage capacity of these solid-state and all-flash memory devices is going to be critical to the rise of "Cloud" computing, where most traditional computing functions are performed at multiple redundant "offsite" locations on the Internet. One of the things this allows is smaller and smaller devices to run applications.
About the Author
Sid is the investment community's best-kept secret. Since 2009, he's served at Money Map Press as Director of Research, analyzing thousands of securities and profit opportunities for subscribers. He's an expert in identifying "alpha" potential in a wide variety of industries, but especially the small-cap sector, where he's discovered a pattern of profits that's almost foolproof.
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