Is Now The Time To Sell Your Tech Stocks? Recommended Link Lou Basenese Editor and Founder, Trend Trader Daily
Dear Wall Street Daily Reader, When it comes to technology investing, timing is everything. Get in too early, and the wait can be long and painful. Get in too late, and the profits just won’t add up. So how do we ensure that our timing, like the old story about Goldilocks, is always “just right”? Well, a few weeks ago, I shared one of my favorite tools for timing tech investments. But today, I want to simplify this tool even more. (And, if you’re serious about investing in biotech, expiring TONIGHT @ Midnight, I’m offering access to my 7 Steps To Biotech Breakouts - for FREE.) The Most Basic (But Most Important) Question Determining whether a technology or service will ever make it into the mainstream comes down to answering a basic but vital question: Is the company’s product a solution in search of a problem that doesn’t even exist… or is it a solution that solves a big problem that already exists? It might seem like a subtle difference. But I assure you, the key to investment success is to focus almost exclusively on the latter. And to really drive home my point, let me share an example… Data, Data, Everywhere For the financial industry, the Bloomberg Terminal is the Rolls Royce of data. If you’re unaware, the Bloomberg Terminal is a computer software system that processes 60 billion pieces of market information. Every day. That helps explain why 325,000 users spend more than $25,000 per year getting access to it. The Bloomberg Terminal is the creation of Michael Bloomberg, a former mayor of New York City. And the company’s success has turned him into a billionaire. At last count, he was worth $55 billion. But here’s the thing: Bloomberg terminals are incredibly successful, but they’re also surprisingly user-unfriendly. The interface resembles a freaking DOS-based computer system from the 1980s, which is when they were originally launched. During a time when sleek, user-friendly products from Apple have captivated the market, how in the world have Bloomberg terminals gained so much popularity, and maintained that popularity? Simple: these terminals solved — and still solve — a massive problem. I’m talking about fragmented data. Recommended Link The Digital Revolution’s First Problem on Wall Street In the ‘80s, for the first time ever, financial data of all sorts were being digitized. But all this vital market intelligence was housed in different places, by different companies. What professional investors needed was a centralized source for all the data, especially since the key to profits in the financial markets is rapid access and analysis of data. Enter Bloomberg. His terminal didn’t need to be pretty or user-friendly. It just needed to provide access to every imaginable piece of financial information in a single place. In other words, it just needed to solve a problem that already existed, and was increasing in severity. Then, over time, Bloomberg wisely layered in news and an instant-messaging service, which made the terminal even more indispensable. As a result, Bloomberg was able to charge a fortune for his service. And the rest — all those billions and billions in revenues and profits — is history. The Bloomberg Playbook Gets Used Again Rest assured, the Bloomberg model wasn’t an anomaly. To the contrary, the same playbook gets used over and over again. For example, what Bloomberg did for financial research, a company called LexisNexis did for legal research — and it was soon acquired for $1.5 billion. And now it’s about to happen again. Only this time, in the field of scientific research. Recommended Link A $7 "Biden Survival" Blueprint? He's run closed-door meetings at the Pentagon... He's met with the Fed chairman and advised the CIA... And he's been paid a fortune to advise wealth private investors... But right now, he's ready to give away his most valuable piece of investment intelligence, practically for free. Why? "Because," says this ex-high-level insider, "I can't keep this under wraps any longer." "Not with everything that's at stake." | | Sell Your Tech Stocks? Answer This Simple Question to Find Out And now I encourage you to review each of the tech investments in your portfolio to answer the basic but vital question I mentioned above: Is the company’s product a solution in search of a problem that doesn’t even exist… or is it a solution that solves a big problem that already exists? If you’ve got a company that’s pitching a solution in search of a problem, prepare to hold it for a long, long time. Even better, ditch it in favor of companies doing the opposite: providing a desperately needed solution for an existing and urgent problem. Your bottom line will thank you for the move. Bet on it! Ahead of the tape, Lou Basenese Editor and Founder, Trend Trader Daily P.S. Replay: 7 Steps To Biotech Breakouts Did you miss the free Biotech Breakout training event I hosted on Thursday evening? If you did, you’re in luck… But you only have until MIDNIGHT A FREE replay of Thursday’s event — The 7 Steps To Biotech Breakouts — is now online and ready for you to view: CLICK HERE FOR YOUR FREE REPLAY » Make sure you watch the replay right away, as we’ll be pulling it offline soon... Click here to watch the replay: Lou’s 7-Steps To Biotech Breakouts Louis Basenese is a professional investor, and one of the country’s leading technology analysts. He’s spent the past 20 years analyzing emerging technologies, and developing a proven methodology to consistently profit from them. Lou began his investment career at Morgan Stanley, where he was eventually tasked with directing over $1.5 billion in capital. Based on his proven track record as a financial analyst and investor, Lou became a television commentator on Fox Business and CNBC, and a market expert in the pages of The Wall Street Journal and Business Insider. But ultimately, Lou found he preferred helping Main Street investors like you. By providing ordinary investors with extraordinary research, he discovered that he can help his readers change their financial futures, and change their lives for the better. And that explains why he recently launched Trend Trader Daily. With this new service, Lou can share his research with you on groundbreaking new technologies and emerging sectors — well before he shares this information with the general public on TV, the internet, or anywhere else. |
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