Thinking about big trends and who will benefit from them is crucial to making long term investment decisions. The key question right now for investors is what about the next 10 years? To my mind, I believe a resurgence in Australia’s resources sector as well as opportunities in agriculture, education and tourism.
We have entered the new era of big data. A massive increase in the volume and speed of information that is stored, recorded, processed and analysed. There are three types of companies that you should investigate in order to potentially make money through data-led investments.
The price of tungsten has jumped 52% since early July, It has beaten all 22 major materials in the Bloomberg Commodities Index. Tungsten has gained for six straight months. The longest rally since 2012.
The recent breakout for gold is bullish. It sets up the precious metals for higher prices longer term. But instead of buying into all the reasons why gold will go higher long term, it’s better to not even know. Ignorance is bliss.
Everyone watches the same things together. And with the world shrining all the time, the value of these big events is getting larger every time.
There are plenty of stocks with sustainable competitive advantages to invest in. Underlying demographic trends can provide strong tailwinds for these types of companies.
With this in mind, would you prefer to buy companies paying dividends over those that don’t?
In Telstra’s case, we know that the rollout of the NBN damages profits margins across the board. This makes Telstra’s impressive mobile phone margins even more attractive to competitors.
This analogy is true of markets. If I step in, the markets could beat me up. What about the risk of standing aside and staying in cash?
I’m going to show you an image that will help you understand the rhythmic nature of the trading market, and the effect this can have on profitability.