Tech stocks have had a rough go the past few months.
Price drives narrative, so many investors are turning their backs on them.
But everyone should be a tech investor.
Tech has a huge impact on economic growth.
It gives businesses and people the ability to create more with less.
This boosts productivity and raises the standard of living for people.
Tech’s importance seems obvious.
But I think investors and experts are sleeping on tech and what it will unlock for the economy.
A New Tech Trend Is Taking Shape
Until the Industrial Revolution in the mid-1700s to mid-1800s, economists were blind to the effects of technology.
They thought growth came mainly from an increase in population.
In the late 1990s, many industry experts were confident the internet would fail.
Obviously, this was a cold take.
The internet created the digital economy, which now accounts for over $14 trillion in economic value.
Right now, we’re seeing another tech trend take shape.
Experts are calling it “digital transformation.”
And businesses around the world are rushing to take part.
The Pillars of Digital Transformation
IDC forecasts the trend to command $10 trillion in spending over the next five years.
The digital transformation has several pillars. These include:
- Modernization of existing tech.
- Optimization of existing operations.
- Creation of innovative products and services.
As businesses transform, I expect many stocks will see huge gains.
Those that embrace tech will see a boost to their business, sure.
But I’m most excited about the companies assisting others with the digital transformation.
They’ll be receiving the largest piece of the $10 trillion digital transformation pie.
You Need to Be a Tech Investor
I know this trend will be HUGE and span multiple decades.
It’s not as sexy as robots or self-driving cars. But it’s a huge priority for businesses.
Just look at how often public companies are discussing it in conferences.
Over the past two years, “digital transformation” has been mentioned 13,000 times.
Compare this to “autonomous” and “self-driving,” which were only mentioned 7,400 times.
Wow.
As I said before, you need to be a tech investor to profit from digital transformation.
And luckily, the recent weakness in tech stocks has created a huge buying opportunity.
Ian King and I want our subscribers to be in NOW.
Last week we recommended two tech stocks that are helping companies with their digital transformation.
Check out Strategic Fortunes to learn more.
Regards,
Research Analyst, Strategic Fortunes
Morning Movers
From open till noon Eastern time.
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