Morning all, how’s things? Big bounce in the markets to start the day. Tug of war continues. Don’t go forcing any buys or sells. Right now, while the markets are up big this morning after the big sell-off late last week, is a great time to remind you that if you were stressed when stocks were 350 points in two days’ time, you’re probably too long. Trim a little back. Be patient. You don’t have to be all in or all out, no matter how little money you have in the markets. Sell 10-20% of your biggest or most worrisome positions and catch you breath.
Now onto today’s report…
The App Revolution that I started predicting back eight years ago when the iPhone first hit is very real. The Biggest Stock Market Bubble of All-Time that I positioned my portfolio and my subscribers for is continuing to build right on schedule. Apple’s about to hit the $1 trillion price target that I first put on it five years ago. I’ve got five new predictions for you, each of which is about to change the world we live in.
Here are five of the most important trends for Revolution Investors to stay in front for the next five to ten years.
1. Wearables – I’m quite serious when I write that the Wearables Revolution create a marketplace that’s measured in trillions of dollars. Let’s assume that the Wearables marketplace grows from its current unit sales figures measured in the tens of millions of dollars to there being just one wearable sold for every smartphone sold. That would mean that we’re talking about a billion wearable units sold per year. Google, Apple, Ambarella, Twitter and Sandisk are some of my favorite Wearables stocks. I avoid GoPro. GoPro should have been built with an Android operating system that would easily tie into your smartphones and tablets. You’ll look back in five years and laugh at how hard it is to manage GoPro content.
2. Google’s Android – Android‘s basically free for developers to use in their wearables, smartphones and other still unthought of devices. With my expectations that the wearables market alone will be moving more than a billion units per year in the next couple years and several billion units a year there after, we’re talking about perhaps the largest market in the history of the planet. Many of your home appliances and car dashboards will be connected to the Internet and will use Android as their operating system to make up that whole Internet of Things marketplace in the future too. Controlling the operating system on billions of devices will be worth hundreds of billions of dollars ten years from now. This is Google’s game to lose and I don’t expect they will, not with the headstart Android has in having fully attained critical mass.
3. Big Data – The amount and the types of data that are being collected are about to go exponential. Wearables are going to enable you and/or companies you choose to collect data about your health, your blood, your activity, your locales, and so on. And all that data will be crunched in completely new types of ways using new algorithms and creating trillions of dollars in value. Splunk, IBM, Twitter, Apple, Google are leading plays here. I’ve been short IBM in years past but it’s cheap enough that I’m going to take a fresh look at it as a potential Revolution Investing idea here.
4. Content is king more now than ever. The Internet Video Revolution is finally hitting its full stride and Netflix, Amazon, Apple, Google, Dish (with its Sling TV service), privately-held Hulu and others are going to be spending hundreds of billions of dollars to create and/or license content to their services. Sony and Disney are my two favorite plays on this theme, along with Fox and Discovery.
5. The Trillion Dollar Social and Messaging Revolutions – Twitter, Facebook are the two social networks that everybody thinks of when it comes to sharing news. I have been a longtime investor in Facebook FB and recently started buying Twitter TWTR in part because of their powerful reach in disrupting the control of messaging. Snapchat, Whatsapp and Facebook Messenger are driving the next phase of this revolution — messaging. I’m so sure of the value about to created in the Messaging Revolution that my own company has just rolled one out to the Apple App Store and Google Play Store — Futr, a messaging app that allows you to schedule when your video, photo or text messages get delivered.