I’ve got a special update for you today.
I recently visited Seattle. It’s home to some of America’s biggest companies, like Amazon and Microsoft.
Seattle is on the cutting edge of Transformative Technology, one of the five investment sectors on my radar.
There’s an unparalleled level of growth to come from companies that invest in transformative tech.
And periods of chop, like we’re seeing in the markets right now, can often be a great time to invest.
Today, I’ll tell you what industry I see as the technology of the future… and one simple way to invest in it.
It’s all in the short video below. Just click on the image below to watch it. It’s just under five minutes long.
And as always, I’ve also included a transcript underneath.
I hope you enjoy my video update from Seattle. Let me know what you think at [email protected].
Happy investing, and I’ll be in touch again soon.
Regards,
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Nomi Prins
Editor, Inside Wall Street with Nomi Prins
TRANSCRIPT
Hi, everyone. Nomi here. I’m coming to you from Pike Place Market here in Seattle, Washington.
It’s the oldest continuously running public farmers market in the United States.
We’ve been talking a lot lately about the New Energy and Infrastructure sectors. But today, I want to switch gears a bit while I’m here in Seattle.
Seattle is home to the cutting edge of Transformative Technology. But more on that in a moment.
As I’ve been discussing here for the past six months, we are living in the midst of a massive paradigm shift that I call The Great Distortion between financial markets and the real economy.
That gap presents opportunities in our five focus themes, which are New Energy, Infrastructure, Transformative Technology, Meta-Reality, and New Money.
And that’s because, despite current market turbulence, money will still be flowing into these areas from multiple places… from governments, Wall Street, mega money managers, companies, and also retail investors.
Since the financial crisis of 2008 and then the pandemic, the Fed and other central banks have created trillions of dollars to bolster Wall Street and to keep the markets happy…
…until recently, when the Fed hiked rates 25 basis points in March and 50 basis points in May.
Those actions – and expectations of more to come – have really spooked the markets, especially the technology sector.
But I think the Fed will eventually not act as hawkish as it’s been projecting. Being patient and strategic during this period of volatility is absolutely crucial.
And looking beyond this chop is key to a positive investment experience.
Investing in the Technology of Tomorrow
Which brings me back to Seattle, the poster child for looking ahead during choppy times.
Seattle and its surrounding areas hold offices, headquarters, and the operations of some of the biggest global companies.
And that includes two of the most powerful and influential companies on Earth – Amazon and Microsoft, that fall into that Transformative Technology space.
Microsoft’s leaders, Bill Gates and Paul Allen, moved their headquarters to this area in 1979. Jeff Bezos founded Amazon in Seattle in 1994.
Those firms have grown from a small software company and a virtual book sales platform to global tech goliaths.
Microsoft’s market cap sits just high of $2 trillion. And Amazon is at $1.15 trillion. And that’s after recent downward pressures.
As we have seen this year, markets are struggling. As I mentioned, investors are concerned about what the Fed is doing and what it will do.
The tech sector, in particular, has been hammered on concerns about whether that cheap money supply is over for good… or whether it’s just temporarily retreating from those pandemic highs.
The truth is that companies that keep building and investing in the transformative technologies of tomorrow will be the ones that rebound the quickest.
For instance, both Microsoft and Amazon have established crucial cloud computing components at the core of their businesses.
The global cloud services market is estimated to be worth $1.62 trillion by 2030. And that’s a conservative estimate.
That represents an incredible growth trajectory. If Amazon and Microsoft grab even half of that market share, that would be well over $800 billion in cloud computing revenue alone.
That’s an unparalleled level of growth.
And beyond that, growth in cloud-related technologies can spill over into other Meta-Reality, New Energy, and Infrastructure sectors and companies as well.
Critical Component of Transformative Technology
As tech companies around the world face an uncertain landscape on the back of central banks tightening their policies, these transformative technologies will be around for the long haul.
That’s why they represent solid investment opportunities for you.
So yes, there will be more chop ahead for the market and for the tech sector.
But the cloud industry still represents an opportunity. Since cloud technology remains a critical component of Transformative Technology.
The best way to take broad advantage of this positive future of cloud technology is in the First Trust Cloud Computing ETF (SKYY).
Happy investing, and I will talk to you soon.
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