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Let's talk about Wall Street.
Throughout this long "flat" market, Wall Street has lurched from crisis to crisis. Retail investors "panic sell" first and get the facts later… if ever.
And the big shots on Wall Street clean up – a rigged system.
Nowhere was that more clear than the sell-off we saw after the June 23 Brexit vote.
It was a "crisis." And sure enough, stocks sold off for two days.
But then they went on to rally with great fervor – and they're now hovering around record highs.
I guarantee you that during this stretch plenty of Main Street investors lost a bundle while Wall Street firms lined their own pockets.
That's why, when I tell you the best way to get rich is to invest in technology, I don't look at the day-to-day lurches in the stock market. Instead, I turn to the strength of our economy.
That's what is going to drive the stocks you hold higher in the long run… not this or that momentary "crisis."
And here in the United States, we're seeing some pretty upbeat economic reports…
- In Friday's jobs report, the U.S. Labor Department said nonfarm payrolls rose by a seasonally adjusted 287,000 – the strongest month of hiring since last October.
- Last month, the National Association of Realtors said sales of existing homes in May, the last month for full data, increased 1.8% to an annual rate of 5.53 million units. That's the highest level since February 2007.
- Analysts at Autodata said car and truck sales in June came in at a seasonally adjusted annual rate of 16.6 million units. That's a bit below forecast but follows record sales for 2015 and a 17.5 million run rate in May.
- And a few weeks ago, the early numbers from the U.S. Commerce Department showed the economy had grown at a mere 0.5% in the first quarter. That's slow growth, but those numbers have been upgraded twice since then. And first-quarter GDP now looks to have expanded by 1%.
That's all good news for the U.S. economy.
But for tech investors like you, the news is even better…
While I would like to see stronger GDP numbers, the economy grew twice as fast as first reported – and we clearly are not entering a recession.
And it just goes to show – if you can stay ahead of Wall Street… if you can be nimble instead of lurching this way and that alongside the teeming masses of panicky investors – you can build the wealth you're looking for.
Now, a new report from KPMG proves what we been talking about for years at Strategic Tech Investor – these days, every business is a tech business.
KPMG recently surveyed 400 CEOs across the economy and found them to be a rather bullish lot. Some 66% of the business leaders surveyed said they believe the next three years will be more critical than the previous 50 years.
Those CEOs cite the pace of technological change as a key growth driver for their firms and the U.S. economy. And they believe that the pace of technological change will be one of the biggest factors impacting growth over the next three years, second only to economic factors.
That should be no surprise to Strategic Tech readers…
It's All About Data
They plan to dive into ever-growing amount of resources that Big Data provides in order to develop new products and services and to drive their growth strategies and profit margins.
As important as that finding is, it actually understates the impact tech will have on all industries, according to the KPMG report.
Chalk it all up to what KPMG believes is nothing short of the Fourth Industrial Revolution – the proliferation of cyber-physical systems, machine learning, and sensors.
That's the Internet of Everything – 50 billion physical objects connected through sensors and the web over the next few years alone. Thanks to the IoE, virtually every physical object in a company's supply chain – from items on the shop floor to pallets in a cargo ship to the delivery truck that brings stuff to your door – will soon all be talking to each other.
Thanks to Big Data and the IoE, these CEOs believe they will have the facts they need to make better business decisions. All that data flow between all those sensors will give them crucial new insights about, well, everything.
"CEOs have never before had so much information about how their customers use their products and services, where their companies operate effectively – and where they don't," the report says.
That will be particularly true for the United States, where our leadership in tech gives us a huge advantage. And the CEOs agree with me on this.
Some 37% see America as a growth leader. That puts us second on the list behind India at 44% and slightly ahead of China at 36%.
Eighty-seven percent of those surveyed listed keeping up with new technologies as a major concern, while 65% said they will harness disruptive technologies to drive new sales.
All that makes this a great time to be a tech investor.
Simply stated, it's hard to imagine a robust investment portfolio without more of the kinds of game-changing technologies that keep coming out of Silicon Valley.
That's why we don't worry much about the rigged system on Wall Street – and try to look past the stock market's frequent lurches.
Instead, I try to bring you investment opportunities that will skyrocket as companies' dependence on technology soars.
So check back here often… because I promise to keep doing just that.
The IPO Heard Round the World: Twilio's blockbuster debut is just the latest evidence that the tech IPO sector is making a comeback – and this ETF is the best way to cash in. It's returned 96% since 2011, compared to 58% for the S&P 500. This is the kind of well-run ETF you want to hold basically forever…
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.