| Sam Volkering | 08 Feb 2021 |
The hottest investment sector on earth?
In today's Exponential Investor…
- Keen to hear your thoughts
- Companies that do absolutely nothing
- Virgin Galactic and DraftKings
Let me ask you one simple question.
What is the hottest investment sector on earth right now?
Actually I'd love it if you took just a minute of your time to write to me and let me know your answer.
Send your answers to sam@southbankresearch.com with the subject line: Hottest sector on earth.
Thanks for that.
Now back to the question and my take on it.
If I look across the world at all the different ways you can invest money, it's a meat market of options.
There's stocks, derivatives, property, artwork, collectibles, crypto, fixed income and even cash. Even within those investment options there are sectors that are already showing us eye-watering potential.
There's decentralised finance (DeFi) in crypto, contemporary art, certain cities around the world still seeing a property boom, there's tech investing in the market, plus cannabis and 3D printing are both making a resurgence.
There's a lot to choose from and so many sectors out there you might consider as the "hottest".
But I think there's one sector in particular that's hotter than perhaps anything else right now.
Can you guess what I think that is?
No? Okay, I better tell you then…
The nothing company Have you ever heard of the Altimeter Growth Corp? What about Apollo Strategic Growth Capital II? Perhaps Gores Metropoulos II Inc. has come across your radar?
No?
That's okay, most people have never heard of these companies. Most people don't know there are hundreds more like these lurking, waiting, coiling, ready to strike on the US markets.
These companies and the hundreds like them are part of what I consider to be one of, perhaps even the most, exciting market opportunity that every investor can take advantage of.
These are all listed stocks.
Now you might have thought I'd say the hottest investment sector right now is crypto. And well, yes it is. However, not all investors are comfortable investing in crypto still.
Many investors still don't understand it or appreciate what's actually happening in that space. In that sense, when talking about the wider pool of investors, most people will still turn to the stock market.
I'm of the view that no one should be all-in on crypto. That's not prudent portfolio management. That also means most investors should have exposure to stocks. Most investors know the market have invested in the market, are familiar and comfortable with the major brokers and their broking apps.
It's friendly, familiar and feels safer than crypto. I get it.
In that case, if you're looking at the stock market (as you should) then I believe companies like I've mentioned above and the hundreds more like them are the sorts of companies you need to pay a lot more attention to.
That's because they're all companies that do nothing.
Yes, you read that correctly. I think the hottest investment market is a whole bunch of companies that do absolutely nothing.
They have no revenues. They have no growth forecasts. They have no growth. They're just a whole bunch of companies that are nothing more than a vehicle full of cash.
Yet, they're perhaps the most exciting kinds of stocks there are right now.
You may be interested inWorld Title Bout – Nickolai Tesla vs Michel de Notredame The PURSE: up to $13.2 trillion
The mighty "seer of the Renaissance" and "the greatest geek of all time"… He is said to have correctly predicted the death of Henry II, the coming of Hitler, the bombing of Hiroshima and Nagasaki and Kennedy's assassination. But Michel de Notredame - the French astrologer and physician better known as Nostradamus – is also credited with calling out the Great Fire of London, 1666… an event that led to the creation of insurance, now a $1 trillion-plus industry. Nikola Tesla is the Serbian born engineer, inventor and futurist who handed mankind the secrets to solar energy… A/C electricity… and electric cars. But in the final years of his life, he foretold of a prophecy so stunning it has taken a century for science to catch up…something that could create an industry with the potential to be worth $13.2 trillion. For the full story and details of how you could position yourself to profit from this, CLICK HERE. Capital at risk. Forecasts are not a reliable indicator of future results. |
A shell full of cash This sector of the market has a bunch of companies that have raised billions of dollars last year, all with one purpose in mind.
To acquire other companies.
These shells full of cash have listed on the market and all they're now doing is trying to find another company to merge with. They will then use their cash hoard, plus more investment from sophisticated and institutional investors to take the new company to the market.
That's all they do.
It sounds simple, because on the face of it, it is. For the average investor you can buy these shells full of cash like you do any other US-listed stock.
Then, you wait. You wait for them to find the right company. Then the expectation, and anticipation, is that they find a good company, one that instantly sees their stock price rise double digits.
In many cases that's exactly what happens. I've seen it time and time again over the last year and a half where these shells full of cash find a company and their stock price pops 20%, 40%, 50% in the blink of an eye.
After the big announcement I've seen them rise 100% and more.
But it all comes down to the kind of company they get. This kind of "roll the dice" strategy is risky. The background of how it all works is rather complex. And these shells full of cash don't always pop as expected.
Occasionally the company that is chosen to bring to market is accused of fraud and deception. It's a wild, risky, but hugely entertaining part of the market to play in.
Some of the success stories from it are some of the best-performing stocks we've seen in the last few years. Stocks like Virgin Galactic and DraftKings, which are just two that have come from these shells full of cash to the market and gone on to immense performance.
I think there are many more just like them, ripe for the picking.
So if you're keen on more excitement in your investments, keen to know more about how to play these shells full of cash and find the right ones to invest in… keep an ear to the ground as there's more on the way soon.
Regards,
Sam Volkering
Editor, Exponential Investor
PS You read my work, so I know you're open to interesting new ideas. Especially if they have the potential to make you a lot of money.
That in mind, I urge you to take a look at this.
I won't say too much here, other than it involves a map, an ex-soldier and a strategy worked on over 17 years in some of the city's most prestigious locations.
Hopefully, enough said.
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