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This Massive Trend Is About to Change Your Everyday Life...By
Friday, June 5, 2015
Imagine walking into a restaurant and the waiter already knows what you're going to order...
Or walking into a Starbucks and your pumpkin-spice latte is waiting for you already... Or shopping for a new pair of pants online and the website shows you only the items in your size with the colors and styles you like.
The world I'm describing is custom-made for you. And it isn't science fiction. It's all part of an emerging trend called "Big Data," which allows for the storage of incredible amounts of data on computers... like what songs you're listening to, what stores you shop in, and more.
Over time, this huge amount of data can accurately predict behavior in things, like what consumers are interested in buying. And when you can predict these things, you can anticipate customers' needs before they even know them.
Here's how it works...
Information scientists create programs and algorithms to crawl through data around the clock with the intention of figuring out your preferences. Over time – and with more data – these programs and algorithms learn more about you and what you like. One day soon, you'll be able to automate your decisions... including what to eat and drink, what clothes to wear, and what you'll do on the weekend.
We can see early signs of Big Data already. When you browse the Internet, you see ads tailored to things you have searched for or purchased. Imagine that type of experience in the world around us... Soon, your decisions will be made for you. That's the future I envision. And if I'm right, it means certain companies will be making billions of dollars off it.
Companies investing heavily in Big Data include well-known blue-chip companies like IBM, which has a product called Watson. Watson is a computer that uses Big Data to answer questions. IBM has already signed a deal to integrate Watson with Apple's new smart watch.
One industry set to benefit greatly from the growth of Big Data (and Watson) is health care...
In 2013, the U.S. spent $2.9 trillion on health care... nearly $10,000 per person. Research suggests that as much as one-third of that spending is wasteful and, worse, potentially harmful to patients.
Sure enough, IBM is collaborating with health care giant Johnson & Johnson's knee- and hip-implant division. And IBM is working with Medtronic to connect heart devices, diabetes pumps, and other medical devices. I could go on...
But the big question is: "How do we profit?"
You could buy shares of IBM to gain exposure to this long-term megatrend. But I prefer the idea of speculating through smaller companies like Splunk, Tableau Software, Infoblox, and Neustar, which are working to create cutting-edge applications using Big Data.
Even among professional investors, these early stage businesses are typically viewed as risky bets. But if you know what you're doing, you can eliminate much of your risk (as I discussed in this essay)... and set yourself up for hundreds-of-percent returns.
Whichever strategy suits you, the Big Data trend is going to change your life... and soon. Don't miss out.
Speculate profitably,
Paul Mampilly
Further Reading:
If you missed Paul's series in Growth Stock Wire last week on the differences between average investors and professional speculators, make sure to check out the links below:
"Hundreds-of-percent returns in a year... It's impossible for most investors. But for skilled speculators, it can be a reality..."
"Following this one simple idea will put you ahead of almost every other investor or trader in the world."
"The key to making huge returns in the market is to win a lot when you're right and lose a little when you're wrong."
"This idea is incredibly important... one you must master if you're looking to take your trading to the next level."
Market NotesA NEW HIGH IN THIS 'GOOD FOR AMERICA' STOCK Wells Fargo just reached a new all-time high... and that's good for America.
Over the past few years, we've profiled the soaring bull markets in construction stocks, retail stocks, and entertainment stocks. We figure that if these sectors are enjoying rising profits and soaring stock prices, the economy can't be doing all that bad.
Today's chart looks at the surging share price of Wells Fargo (WFC). With a market cap of around $294 billion, Wells Fargo is America's largest bank. It's also the nation's largest issuer of mortgages. It's very much a "play" on America.
Like almost every financial company, Wells Fargo was hammered in the 2008-2009 credit crisis. But since bottoming in 2009, it has been all recovery for Wells Fargo. The company has "digested" the bad debts of years past, and it's now increasing earnings. Things are going so well that the stock just reached its highest level ever. It's yet another sign that things "can't be all that bad" in America.
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