Software Stocks Are Soaring
The high-flying tech darlings of recent memory mostly fell flat on their faces this year.
Loosely speaking, the market often seems to follow the laws of physics.
Downward pressure in one sector, usually corresponds with an upward surge in another sector.
Whether they’re inherently related or not is another topic.
The simple point is while one sector is tanking, in this case semiconductors, another tech sector is enjoying an explosive winter rally.
My suspicion is the gains will keep coming. And today I reveal the companies behind this sector’s December surge.
Chipmakers Down, But Will Rise Again
Before jumping into the tech sector that will save your 2018 let’s assess the damage done in the semis sector.
The long-term trend is still intact. New tech begets more new tech. The problem is we’re starting to hit a wall in innovation!
The semiconductor industry has really taken a hit. The industry warns tariffs will cut into production and profitability.
And, after years of soaring growth, semiconductor makers are scaling back.
“Weak demand, overcapacity and a trade conflict… has dampened investment, as electronics companies wait out uncertainty,” says an article at Nasdaq.
Here’s an updated casualty report, looking at the most heavily traded semi ETFs:
But the semis will rise again, as I mentioned above. The long-term exponential growth of technology fueled by new and more powerful chips means more gains once the dust settles.
Software Stocks Will Save Your Year
Get in now and thank us later…
As I alluded to above, an evolution in how we bank profits in technology stocks is underway.
We’ve had a ton of success with hardware stocks, but now software companies are benefiting by creating new advanced software services that utilize the great new hardware companies like Nvidia and Intel make.
Take a look at some of the software firms we’ve talked about this year.
The clear winner in tech right now is software services like Twilio (NASDAQ: TWLO) and Tableau Software (NASDAQ: DATA).
We mentioned taking a crack at these on November 13 noting the start of a surge. As of noon today shares were up over 12% and 17% respectively.
Ray’s Cannabis Corner
Hemp, long before cotton, was the fabric of American life. Thomas Jefferson wrote to Alexander Hamilton claiming protecting the American hemp industry was a matter of national security.
Now after 5 decades of hemp prohibition we may now have legislation that will allow nationwide cultivation.
According to Marijuana Business Daily, the 2018 Farm Bill, which contains an “agreement to allow for nationwide hemp cultivation” passed the Senate vote is now moving onto the House vote.
Big things are going to come out of this.
Including the technology innovation chipmakers are chomping at the bit for.
For Technology Profits Daily,
Chief Technology Expert, Technology Profits Daily