Technology will be the one sector of the economy you can count on for high growth in 2017.
That may sound hard to believe, because tech slightly lagged the broader stock market through the first 11.5 months of 2016. But that was largely because life sciences fizzled.
But tech stocks are going to resume their leadership position in 2017.
Therefore, if you're one of the millions of Americans trying to put together enough money for a stress-free retirement, technology is where your focus should be.
In this wide-randing interview with Money Morning Executive Editor William Patalon III, I lay out my "case" for tech's resurgence, talk about the surprising benefits incoming U.S. President Donald Trump will have on American innovators, and outline a strategy for maximizing high-tech profits in 2017.
VR Becomes a Profit Reality
William Patalon III: Before we talk about specific technologies, talk with me for a moment about your overall view for high tech in 2017. Is it an upbeat view? A modest view? How does that compare with the consensus? What are the keys to your prediction? What has to happen for your "call" to become reality?
Michael A. Robinson: As a group, technology is going to have a great year. Fact is, tech is the one sector of the economy you can count on for high growth. The incoming administration of U.S. President-elect Donald Trump has said it is targeting domestic growth of 4%, which is 66% higher than what we've had in the last eight years. Whether it's cloud computing, Big Data, or the Internet of Everything (IoE), tech fields can grow much faster than the overall economy, which is why you can trounce market returns – if you pick the right leaders.
WPIII: Michael, it probably makes sense to start with a technology that's getting lots of attention – virtual reality, or VR. And let's broaden that to also taken in augmented reality (AR).
I remember walking through a Wal-Mart with my 9-year-old son, Joey, earlier this year and seeing a big display for VR. Given that retailer's target market – more of a mainstream, bargain-seeking crowd than one of "early adopters" – I believe that shows how virtual reality was poised to become a "mainstream" technology in 2016 and 2017. Explain how big this could be… and why. How will we "see" VR and AR?
MAR: Funny you ask that, Bill. Just last night I was watching the action movie Kingsman: The Secret Service. There's a scene in which two characters at a boardroom table don special glasses and hold a "virtual meeting" with directors who aren't actually there. We're on the cusp of seeing that happen regularly throughout the global supply chain, touching everything from manufacturing to logistics to corporate seminars and meetings. As you observed, these two related technologies – VR and AR – will achieve a "critical mass" in the New Year as consumers use virtual reality for games, movies, and…
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.