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Editor's Note: Normally, this 2016 small-cap forecast would go to Sid's paid-up Small-Cap Rocket Alert subscribers, but he was so excited about these trends that he asked us to share it with our Members. He's tracking six micro-trends in his trading service, but the two you're about to see should "spark" some of the biggest gains of the year. Here's Sid…
A lot of investors are worried about what 2016 has in store for them. There are a lot of unknowns: the Fed raising rates, what low oil prices may do to the markets, slowing growth in China…
…yet I'm more excited than I've been in years. And I want to show you why.
What I'm seeing suggests that 2016 may be the most profitable small-cap investing climate we've seen since the late 1990s. That's because so many little companies are sitting right at the starting line regarding some of the world's most exciting trends.
To be clear, I'm not just talking about any old trends here. You can click over to your favorite consumer magazine for that.
I'm focused on opportunities that come from looking deeper than glossy investment reports, from turning over rocks that others don't, and from understanding the implications associated with innovations that, frankly, are no longer science fiction.
These are what I call "micro-trends," little pockets of innovation that are on the cusp of changing the world.
And as small-cap investors, we get to tap into them before anyone else.
The Ultimate "Ground Floor" Opportunity
Obviously, these micro-trends are all very different on the surface. But what ties them together is the same thing we talk about all the time – a "spark" or catalyst that sets the stage for at least triple-digit returns.
To see the power of these trends, just look at what happened to Amazon.com Inc. (Nasdaq: AMZN).
If I was writing this analysis in 1997, my list of micro-trends would probably have had "online shopping" on it. It seemed a bit obscure at the time, but Amazon virtually invented online shopping and has completely changed the retail experience.
Early investors who bought in when it was at $5.08 per share in 1997 have enjoyed gains of at least 6,051.5%, turning every $10,000 into more than $615,150 today.
Or take Starbucks Corp. (Nasdaq: SBUX).
I remember when Starbucks was a one-room grinding shop in Seattle with nothing to set it apart from the dozens of coffee shops in the area save CEO Howard Shultz's vision to sell drinks, not just beans. Today it's a $62.5 billion monster that sets the competitive bar for every coffee shop around the world. Every $10,000 invested in January 2000 is worth $104,375 right now.
Here's the thing… each of these companies was a small-cap player at one point in time. And each dramatically changed its own destiny with a single "spark."
About the Author
Sid is the investment community's best-kept secret. Since 2009, he's served at Money Map Press as Director of Research, analyzing thousands of securities and profit opportunities for subscribers. He's an expert in identifying "alpha" potential in a wide variety of industries, but especially the small-cap sector, where he's discovered a pattern of profits that's almost foolproof.
Good perspective as usual. Hey Sid, so many articles read i forgot which author at money map 2010-2012 era article , cites a rise in minium wage in China from 2000 to 2008 data showing .80 cents [U.S. equivALENT] to near 8$. i found this hard to believe and just early this year another article i believe by Keith focused on How Wrong everyone is on China and cites a doubling in minimum wage….perhaps this was median wage increases year over year of .80cents until it reached a median or minimum[average?is there 'S'tate/federal minimum chinese wage idk]] this may have been Bill P.s first articles in China's South Seas tradezone Wage-ing…or value related research regarding shen-zhen free trade zone expansion. thanks for insight to levels of compensation being pulled down/upwards by the imported peasants turned mis/displaced factory ungluers…and how about the super rapid luminosity gridiron general assembly -type Tech/$ervices hi-labor upgrading to brightest Chinese achievers to partake the multimedia rapid/efficient/specializedfocus training as is done now. Articles in past 2 years have talked about inferior domestic copycatting for retail consumption driving a slipshod domestic manufacturing stockpile of domestic discretionary but this is obviously sandpaper in bigger trend. Is there leading online education sites for the Service economy transition. Continued success to you and co…..some random connected queries.