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The media loves promoting new trends for people to chase. Cryptocurrencies, SPACs, and other buzzy words are always in the headlines with lofty promises.

Investors can profit from some of these, but there are different markets that are stronger. Let’s look at three of them and see how they can be great investing options.

1. Fintech

The fintech market has digital-payment platforms and online banking services, along with cryptocurrency platforms. This market keeps expanding as people switch from cash to shop online more, and depend less and less on traditional banks.

Businesses are also beginning to see the value of streamlining their payments, integrating tools into mobile apps, and taking advantage of analytics to track their customers’ purchases. Allied Market Research predicts the mobile payment market to expand globally at a compound annual growth (CAGR) of 30.1% between last year and 2027 to reach $12.06 trillion.

Companies that might profit from this explosion are PayPal (PYPL), which has its popular online-payment platform that reaches 377 million accounts, and Square (SQ), which handles payments for merchants and allows consumers to make peer-to-peer payments through its app.

2. AI

The AI market is usually thought of as being only “smart robots” but its scope is actually much larger. AI services are now being used to calculate data for advertising platforms, processing large amounts of info to aid companies in making choices.

They can also power chatbots to help a company’s customer-support, or help optimize a company’s supply chain by finding inefficiencies, and increasing safety standards by finding hazards.

The global AI industry increased to $39.9 billion in 2019, as reported by Grand View Research, but might go even further with a CAGR of 42.2% through now and 2027.

My top stocks in this sector include NVIDIA (NVDA), which gives high-end GPUs for completing AI tasks, and Palantir (PLTR), which finds and processes data for federal agencies and corporate customers.

3. VR and AR

The virtual reality and augmented reality sectors are still small but they have both expanded and have great growth potential.

VR devices, which put users inside digital environments, can be used by more than just video games, simulations and even socialization. Facebook‘s Oculus system has a first-mover’s advantage in this sector, and its headsets might expand Facebook’s ecosystem beyond mobile devices.

AR devices, which push digital images onto real-world environments, can be used like heads-up displays for particular professions.

One company worth keeping an eye on in this market is Vuzix (VUZI), which mostly sells AR smartglasses to corporate customers. It is a small company but they have an early-mover’s advantage in the AR market, and might keep expanding as more people and companies get into AR glasses.

The global AR and VR markets might expand at a CAGR of 42.9% between 2020 and 2030, according to reports by Research and Markets, and become a $1.27 trillion sector. That is a bullish prediction suggesting that VR and AR devices might become the next big platforms after smartphones.

Author: Steven Sinclaire
The value of dogecoin (DOGE) fell from its record levels after Elon Musk appeared on Saturday Night, disappointing fans and investors who attempted to force the coin to reach $1.

Analysts had anticipated the Tesla (TSLA) CEO or as some call him, the “Dogefather,” to mention the crypto on the tv show and send prices upward, instead his mention of the coin crashed it almost 25% from $0.69 to $0.48 just a few minutes into his skit.

Dogecoin kept losing from its last week highs on Sunday, and is now trading at 33% lower at $0.47.

Meanwhile, Bitcoin (BTC-USD), which was chaotic in the past days and struggling to maintain its highs, was lower by 2.2% to $57,894.

Bucking the spiral, Ethereum (ETH-USD) — the second cryptocurrency after Bitcoin — increased on the decline, rising by 11% to get to a record of $3,958.

Cryptocurrencies have gained popularity in past months after many banks and popular investors threw their support behind crypto, sending prices skyward.

Last week, the Gemini crypto platform announced its support for dogecoin. This helped the meme-coin increase its market cap to $70bn to claim the title of the fourth-most valued coin

It took Amazon (AMZN) over ten years to give a 10,000% ROI to investors. But it only took dogecoin five months. It has increased by over 14,000% since the beginning of 2021.

Author: Steven Sinclaire

After being at an annual rate of 1.4% in the month of Jan. and 1.7% in Feb, inflation increased to 2.6% in March, causing some experts, including Warren Buffet himself to warn on the surging prices.

“We are witnessing significant inflation,” Warren Buffett said to attendees at his annual shareholder meeting. “We will raise prices. We are seeing suppliers raising prices, and it seems accepted.”

With everyone focusing on inflation, let’s look at four strategies you can use to worry less about its affects on your finances — and maybe even come out ahead — if inflation does skyrocket.

1. Increase your earnings

When inflation happens, you can see it in two ways: prices are increasing or the dollar is losing its value. Either way, earning more is always a pretty good solution.

If you are unemployed or have reduced hours, consider using your free time to develop your skills and position yourself for a larger income. This can mean freelancing or checking if it’s a good time for a career change to get an even larger salary.

2. Play the market

Stocks have normally beaten inflation to a large degree, making them among the strongest hedges against it.

You can benefit from inflation by investing in areas of the economy that might benefit from increasing prices, like tech, food, construction or energy. Companies like Procter & Gamble, Shake Shack and medical manufacturer McKesson all have raised their prices or are working on increasing them later this year.

Weigh the pros and cons of every stock, use apps, get involved online and get in the game.

3. Go metal

Inflation fears are always good for hard assets such as silver and gold. Both metals have done well over the previous five years, with the price of gold increasing by 44% over this time-span and silver’s going up by an even better 54%.

You can have precious metals directly by buying coins or bars, or take a more liberal approach and buy ETFs that hold the silver and gold for you.

4. Use real estate

Real estate has been among the most reliable investment plays an investor can make.

The housing market was on a serious upward path since around Q4 of 2011, when the median price was right above $221,000. At the end of this past quarter, it was $347,500.

If you have the money for a home purchase, start looking at mortgage rates today and find yourself the lowest rate possible. The best mortgage rates tend to go to people with the highest FICO score, so do everything you can to increase it.

If that is out of reach, you can instead buy into real estate without purchasing a property by investing in a real estate investment trust, or REIT for short.

Not everyone thinks inflation’s latest increase is a sign of terrible things to come. Buffett himself stated that it doesn’t seem to be stopping many Americans from spending.

So if you are doing well, you may want to ignore the bad news. Otherwise, these 4 tips will help you prepare for inflation.

Author: Scott Dowdy

For decades, every generation of CPU chips got faster and better because their most fundamental building block, called the transistor, got smaller.

The pace of that shrinking has slowed, but IBM on Thursday revealed that the industry has one more advance ahead of it.

IBM unveiled the world’s first 2-nanometer chip technology. The technology might reach as much as 45% faster than the current mainstream 7-nanometer cpus in today’s phones and laptops and up to 75% more power efficient.

The technology will possibly take several years to reach the market. Once a leading manufacturer, IBM now outsources its production to Samsung but maintains a research center in New York that creates test runs of chips and has deals with Intel to use its technology.

The 2-nanometer chips will beat the leading 5-nanonmeter chips, which are now showing up in smartphones such as the iPhone 12, with the 3-nanometer version expected to arrive after the 5-nanometer chips.

The technology IBM showed off is the most basic component of a CPU: a single transistor, which behaves as an on-off switch to produce 1s and 0s that form all computing.

Making these switches smaller means they can run faster and more efficiently, but it also gives problems as electrons leak during usage at such a small scale. Darío Gil, director of IBM Research, said to reporters that his team was able to use nanometer thin sheets of insulating material to prevent these leaks.

“In the end, there are transistors, and everything depends on if the transistor gets better or not. And it is not guaranteed there will be another transistor advance again. So it is a big deal when we get see there is another,” Gil said.

Author: Scott Dowdy
Are you thinking of going with the crowd that likes to ,,”sell in May and run away?” ,,

Don’t be so fast to embrace that saying. While there is data to support the theory that stocks don’t do well after May and October, some terrible years can change the average return during this time, to look downward. During a normal, bullish market, the next months could be as progressive as any other. And if you have the right stocks, it could be even more profitable.

So here are three of those types of stocks. Ones with great growth opportunities and are ripe for buying this month.

1. Entegris

For the first time in seven quarters, last month, Entegris’ (ENTG) earnings fell lower than analysts’ consensus estimates. Its Q1 top line was short from expectations too, though it grew by 24% y/y. The company’s Q2 predictions for earnings per share was between $0.77 and $0.82 on revenue of around $530 or $545 million is pretty much what analysts modeled, and well higher from last year’s numbers of $0.60 per share and sales at $448.4 million. But investors could not get over the earnings miss, maybe wondering if the company is being harmed by the chip shortage that is working against other companies.

It is a worry, however, that ignores the true dynamic of the low supply of semiconductors.

The shortage is connected to incredible global demand. This means Entegris is doing the same business it was doing before covid harmed supply lines. The firm is actually getting greater demand as users of its components try to offset the shortage by optimizing their yields and improving their current technologies; that is where an advanced process solutions provider like this one can change everything.

Despite last quarter’s not so great results, analysts say the company is on track to grow its revenue by almost 17% this year, with profits increasing by almost 25%.

2. Align Technology

Align Technology (ALGN) might not be a well-known name yet, but there is a good probability someone you know is using its product. It’s among the top companies making invisible braces. You may know it as Invisalign.

The coronavirus forced large problems onto the company as dentists contributed to the virus-reduction effort by only performing emergency procedures. Align Technology’s Invisalign requires a trip to a dentist to get your teeth scanned; it does not offer scanning through a “SmileShop” or through an at-home dental kit as competitors do.

Customers do seem to like having their dentists do this kind of work, however. With the COVID pandemic pulling back and dental practices getting back toward normal work, Align’s Q1 revenue was not just higher by 62%, but hit a record-breaking $895 million. Analysts say this growth level will continue for the rest of 2021, and while sales growth should eventually decrease in pace, the market is still seeking double-digit percentage growth through 2022. Profit growth could be even better.

The stock price is down by 7% from last week’s high, but that sell-off seems to be more like profit-taking than a reason to worry.

3. The Trade Desk

Finally, lets talk about The Trade Desk (TTD) and why you should add it to your list of stocks to invest in before May ends.

The Trade Desk gives the advertising industry a cloud-based solution that optimizes ad-buying. More than just buying traditional advertising, it uses consumer data and campaign management tools to guarantee that advertisers get the most bang for their buck.

 

Not only has covid not been an issue for the company, it has even accelerated The Trade Desk’s success. Last year, its revenue increased by 26%, almost doubling per-share profits. Analysts anticipate sales growth of 35% for 2021, with a rebounding economy helping out. While these analysts are also predicting an earnings lull in 2021, understand that this company has not failed to beat earnings estimates since 2017. The current outlook seems to underestimate what could happen.

However, the stock is having relatively bad performance since it reached a high in December. While most of the 28% price pullback since then can be said to be about profit-taking, it’s not like The Trade Desk is not doing great.

 

Author: Scott Dowdy
So far, over 2 million people have signed a petition for $2,000 monthly checks for every American citizen. This petition was created by Stephanie Bonin, a restaurant owner from Colorado, and was first put onto the website Change.org last year.In the petition description, she remarks that she is among the millions of people who fear for their financial future due to the COVID-19 pandemic. “With businesses closing across the nation, many are already jobless. This is catastrophic for American working families, mine included.”

“I’m asking for Congress to support families with a monthly $2,000 payment and continuing regular payments during the crisis,” said Bonin. “Otherwise, workers who have been laid off along with self-employed people and those dealing with lowered hours will struggle to afford food and rent,” she said.

“It took Congress nine months to pass a second stimulus, and moments to spend it. Another single check will not solve our issues – people are simply too far behind,” says Bonin.

The last check was sent out earlier this year.  The amount was $1,400 for every American. Since the spring of 2020, the IRS has given almost $800 billion in relief payments.

More than 75 Democrats have called for monthly checks. However, while liberals are calling for monthly checks, Republicans remain skeptical of the agenda, fearing what could also be forced into such legislation.

Author: Blake Ambrose
Dogecoin has almost doubled since April, rising more than 50% after a surge pushed by internet users tried to force the coin to $1, as plans for a “Doge Day” failed last month.

The meme-based crypto increased 55% to reach $0.68 on Wednesday morning, it is now at $0.65.

Dogecoin increased by 450% to an all-time high of $0.32 during April of this year.

Wednesday’s move pushed its market cap to more than $70bn to be the fourth-largest coin in terms of valuation. This is larger than the value of coronavirus vaccine maker Moderna (MRNA).

For context, Amazon (AMZN) took over a decade to give a 10,000% return. It has taken dogecoin only five months.

This comes after support for the two coins has increased. With popular exchange Gemini announcing on Wednesday that it will now support dogecoin, and eToro also adding the cryptocurrency to its online trading app this week.

Meanwhile, bitcoin (BTC-USD) has struggled to reach the record highs that it had last month. the leading crypto had a pullback of 2.9% to $54,564.

Ethereum (ETH-USD), which is the second popular crypto, was also down by more than 2% to $3,284 on Wednesday.

Author: Steven Sinclaire

GameStop (GME) and biopharma Bausch Health Companies (BHC) are two firms that have put themselves back on the path for growth — after experiencing a downturn for a long time. Shares of these two stocks are higher by 2,790% and 82%, over the past year. 

These companies also have attracted substantial institutional demand. Ryan Cohen, the co-founder of Chewy, is personally steering GameStop’s momentum after buying a 13% stake in the firm. Meanwhile, billionaire hedge fund guru Carl Icahn bought 7.83% of Bausch Health’s shares. Here’s how these businesses might push forward.

1. GameStop

It was obvious from the start what this retailer needed to make a comeback: close their unprofitable locations, invest in e-commerce, and change its outdated services. 

The problem was no one believed in its future. Lenders believed the company was going extinct and stayed far away. Due to short-selling, its share price also stayed low to cause equity financing to be impossible. 

That changed when the legendary short squeeze, which happened on Reddit, sent its stock skyrocketing. Thanks to this boost, GameStop brought in $551 million in cash by selling only 3.5 million units (around 4% of the firm). A year ago, it would have brought in just $13.2 million by selling this same total.

With this cash, it was able to deal with its long-term debt. Now, GameStop is primed for growth. Last year, the company’s e-commerce went up by a stunning 191%. Online sales of consoles, video games, and collectibles are now 30% of its revenues of $5.09 billion.

The best thing about GameStop is its current low valuation. Despite its new momentum and cash balance, the stock is only at 2.26 times revenue. Stocks in the retail sector usually go for between 0.8 times to 4.5 times revenue, with more e-Commerce sales meaning a higher value. So there is certainly room for more money to be made.

2. Bausch Health Companies 

Bausch Health Companies is a pharma company with a dark history. Formerly called Valeant Pharmaceuticals, the company started a streak of leveraged purchases in the early 2010s. It had vast piles of debt, bought a competitor, laid off staff and raised its prices, and continued on to the next while its profit margins increased. This stopped suddenly in 2015 after an accounting scandal and political anger over its price-increasing dealt a heavy blow.

Now, Bausch Health is a group of contact lens makers and eye care company Bausch + Lomb, various dermatology companies and Salix Pharmaceuticals. The company has $24.1 billion in debt and generates only $1.428 billion per year in earnings.

 

Over $15 billion of its $8 billion in annual revenue goes to interest alone. The firm only has $452 million for the R&D to produce new drugs every year. 

The fact that it is still alive is a miracle. But, despite poor choices, the former CEO of Valeant Pharmaceuticals, Michael Pearson, made one smart move: the buying of Bausch + Lomb in 2013 for $8.7 billion. Due to the growth of contact lenses, Bloomberg says the subsidiary’s value could be between $20 billion and $30 billion.

Right now, Bausch is trying to unload its Bausch + Lomb company. If it finds someone to buy the subsidiary for anywhere close to that price, it might remove its debt and start new. It is also thinking of doing a spinoff of Bausch + Lomb away from its core business to silo out its liabilities.

Trading at just 1.45 times sales, Bausch might be a buy if it can come back from debt and chart a path forward. For now, the firm makes enough money to pay its interest and refinance when debt principles are due. It is now a bargain compared to the average pharma stock which are usually priced at five times revenue.

 

Author: Scott Dowdy
Artificial intelligence (AI) is expanding into everything from smartwatches to voice-enabled speakers and even cars. But while AI is going mainstream, not all AI companies are benefiting.

 

Investors seeking the top AI companies to invest in right now should look at NVIDIA, Amazon, and Microsoft. Here’s why this is the case:

1. NVIDIA

You might have heard that NVIDIA is a top graphics processing unit company that has made a lot of money from the gaming sector.

The company is a huge gaming leader, with revenue from GPUs increasing 67% in the recent quarter, making up 50% of the firm’s top line for the quarter.

But the company is also a leading AI player. The company makes use of its GPUs to aid data centers, which are more and more focused on ai. Nvidia’s GPUs help data centers to go through information like image recognition, allowing for greater cloud-based AI services.

The company’s data center sales increased 97% in Q4, and now make up 38% of the firm’s total revenue. That is impressive, especially since only two years ago data center sales were just 30% of NVIDIA’s revenue.

And then there is the company’s purchase of Arm Holdings, which is still pending. The company says it will use its AI expertise and Arm’s CPUs to “form a company perfectly positioned for the age of AI,” according to CEO Jensen Huang.

The deal has not ended yet and still faces a few roadblocks, but even if it doesn’t go through, NVIDIA’s AI opportunity is still enough to keep the company growing and make it appear on this list.

2. Amazon

Amazon is doing much more in the AI space than you might first realize.

For starters, the company has experimented with AI in its Amazon Go and Fresh stores, which utilize image recognition to track what customers are picking up — and what they walk away with — and then automatically charge their cards for it.

And then there are Amazon’s Echo speakers, which use voice-recognition assistant, Alexa. The virtual assistant is getting so popular that it’s now inside many third-party devices and is among the leading smart virtual assistants.

But what really puts the company near the top for AI is its leadership in the cloud market. Its Amazon Web Services (AWS) aids companies in creating chatbots, using video and image analysis, performing text-to-speech, forecasting demand, and a lot more.

AWS has 32% of the cloud market, and it is one of Amazon’s top sectors. The firm earned $4.2 billion in operating income from AWS in 2021’s Q1, higher than its $3.5 billion income from its e-commerce business in North America.

For a top AI play, look no further than Amazon.

3. Microsoft

Don’t underestimate Microsoft’s growing stature in the AI industry.

Microsoft’s Azure is the second cloud service behind AWS, and is growing thanks to the greater demand for cloud-based AI. Azure’s growth over the past three years has made Microsoft a large AI player — and so will its latest purchase.

Microsoft announced last month that it was buying Nuance Communications for $20 billion. The company creates voice recognition and healthcare AI, including patient engagement and voice transcription. Microsoft says the company will fit well into its Intelligent Cloud business. Nuance’s AI services — like its Dragon speech application — are used by firms globally, and its AI healthcare tech is used by 77% of American hospitals.

 

By buying Nuance, Microsoft has almost doubled its addressable market in healthcare to $500 billion, and given themselves even better AI tools.

If you are looking for an established company with a foothold in AI, Microsoft is exactly what you are looking for.

 

Author: Blake Ambrose

 

Just as some have predicted – but even sooner than anyone really expected – Treasury Secretary Janet Yellen not only walked back her previous statement but has completely reversed it.

Speaking at the CEO Council Summit, the former Fed leader said she “did not see Biden’s rescue program overheating the American economy.”

“Let me be clear I am not predicting this,” Yellen said concerning rates, changing her previous perspective completely.

Then she spoke about the topic of inflation, using the establishment take that inflation will be “transitory” for six months.

She also said that if there was an inflation issue she is certain the Federal Reserve could be counted on to solve it.

Previously, Yellen was speaking at The Atlantic’s “Future Economy Summit” and sparked investor worries with her prediction.

“It might be that interest rates will need to rise to ensure the economy does not overheat”

And this gem of truth:

“We have gone for too long allowing long-term problems in our economy”

Is she speaking of the Fed-sponsored money printing and wealth-creation? Listen to her comments here…

And in response to her comments – stocks plummeting as one might expect at the first signs of easy money being removed… The dollar also spiked.

Now, it seems, the establishment has reigned her in and forced her to play along.

 

Author: Steven Sinclaire

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