Investor enthusiasm seems to be surging and valuations that have been lingering are increasing further. While a bull market is a good news and a good earnings season is the perfect excuse for bulls to dominate, it’s hard to overemphasize the need for caution. Estimates for the third quarter have been adjusted. Many companies continue to report uncertainty for not providing annual guidance. Elections are moving fast. There’s a lot to look forward to this year that could have a significant impact on the stock market. Now seems like a good time to review our long-term outlook and invest in the future. So let’s look at some long-term trends that you should invest in –
Everything is moving to the cloud(long-term trends)
This is the biggest trend and a lot of people have written and talked about it, so we are already familiar with the fact that workloads are moving to the cloud, entertainment moving to the cloud, and education moving to the cloud. to the cloud and e-commerce is happening with its help, healthcare is increasingly moving to the cloud, our AI-powered future will be from the cloud, and more.
So there’s really nothing more to add. From an investment perspective, that means there are plenty of ways to play this and increase our cloud visibility. And depending on valuation (all space is overvalued to varying degrees), we can invest in infrastructure, software, and hardware, including chips, and more.
Stocks: While FAANG, Microsoft MSFT, NVDA, and AMD stocks are the most talked about stocks, these stocks can be interpreted as having stretched valuations at the moment. A stock like Dropbox DBX is a way to tap into undervalued growth.
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Ecommerce is here to stay(long-term trends)
E-commerce has grown by leaps and bounds over the past few years, but it shows no signs of slowing down. Instead, the categories served by e-commerce continue to grow. While early online players like Amazon AMZN took center stage, most traditional players today have some sort of online presence, be it their own website or Facebook store. FB. There is massive growth waiting to happen in this space and even more if you consider the global opportunity. So you should definitely get some exposure here.
Automotive ownership moving toward EVs
The main factors hindering the widespread adoption of electric vehicles are cost and President Trump’s negative views on environmental protection and sustainable transportation.
But materials science is making progress to make batteries lighter, faster, cheaper, safer, and easier to charge. China leads in the first round, with the NMC 811 battery (i.e. nickel-manganese-cobalt in the ratio of 8: 1: 1), and South Korea follows the same path. Tesla will have the 811 version later this year. Although increasing the percentage of nickel improves performance, it also increases the risk of fire. In addition, cobalt is relatively rare and expensive. Most materials research in the United States is currently done by US universities, but battery development will take several years. Meanwhile, adjusting the NMC rate will help save some costs and be easy to apply.
Meanwhile, the US Energy Innovation Act (introduced in the Senate) and the Climate Leadership and Environmental Action for Our National Future Act (introduced in the House of Representatives) this year, led to the possibility of government funding for advanced vehicle development and production. As a result, the technology developed can be widely licensed to all companies in the industry, which will lead to an impetus for faster electric vehicle adoption.
Faster adoption in Europe due to government mandates and ambitious CO2 emissions targets.
Stocks: The Tesla TSLA is the most obvious here, but its stock is overvalue. Among the traditional players, Peugeot (PUGOY) and General Motors GM are good choices. Peugeot’s electric cars are already very popular, especially in Europe. GM is also in the works and plans to have 20 models by 2023.
Increased focus on health and wellness(long-term trends)
The increasing cost of health care has made it increasingly clear that prevention is a better way to deal with health problems. Mutual people really want you to take care of your health. And consumers have also become much more conscious. In contrast, the pandemic has reinforced this trend.
For example, when you buy food, you check the label to see if the food is natural (no preservatives, artificial colors, or flavors), organic, non-GMO, or syrup. -high fructose corn syrup (HFCS) or not, if it is gluten-free, etc. Some will even check to see if they are plant-base, grass-fed, A2, or soy-free. This turned into now no longer the case some years ago. And in a few years, the awareness will be even greater. The trend will therefore strengthen.
The class introduced by the pandemic is home food. While restaurants aren’t going out of style (many are dying to come back), people have become more aware of the risks. So some of the strength that grocers are seeing will be maintain.
The focus on the right foods becomes a bigger trend that includes daily exercise, better sleep habits, and more.
SpartanNash SPTN Grocery and Farmers’ Market (SFM) looks great here. SpartanNash is in the business of distributing food, both to its own and other stores, e-commerce companies, and the military commission. Sprouts has its own retail stores catering to the growing health and novelty enthusiasts.
FLO Food Flowers is another stock I like because its baked goods have led in areas such as non-GMO, gluten-free, HFCS-free, and more. The company’s strategy is to create specific brands that meet specific needs.
Medifast MED is another stock whose mission is to change people’s lifestyles by helping them adopt healthy habits. The company has a unique sales model where the sales force is employe as “wellness coaches” to sell its products and programs.
Gold is a safe haven
Gold exposure is use to hedge market risk. Because when investors fear a stock market crash, they tend to pour money into gold, which causes the metal’s price to rise. But when prices fall, consumers turn to markets to buy jewelry. In addition, over the past two decades, some countries have bought more gold. Which also has a positive impact on prices. Since we’re currently looking at market volatility for a number of reasons, it might be a good idea to invest some money in commodities or in certain stocks or ETFs.
Stocks: AngloGold Ashanti Limited AU or Barrick Gold Corporation GOLD might be worth adding now. ETFs seem expensive.
Biggest Tech Breakthrough in a Generation(long-term trends)
Be one of the first investors in this new type of device that experts believe could have as much of a social impact as the discovery of electricity. Existing technology will soon become obsolete and be supers by these new devices. In the process, it’s miles anticipate to create 22 million jobs and generate $12.three trillion in business.
A select few stocks could soar the most as the rollout of this new technology accelerates. Early investors could see returns similar to those of buying Microsoft in the 1990s. The newly released Zacks special report reveals eight stocks to watch. Reports are to be had for a constrained time only.
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