2014 - Themes Shaping My Investments (pt 1)

I want to capture the themes that I believe are shaping the world in 2014 and for the foreseeable future.  Game changing events shape people first, then entrepreneurs react, and finally investment dollars follow.  This is important for many people to remember in my opinion when looking back and asking why is the world changing right before my eyes and how can I participate. I've heard the phrase when life gives you lemonade...and changed it to when you and the world are buying or using a quality product think about investing in it.  I have a good friend that constantly talks to me about Whatsapp and if anyone close to me knows Apps are not my thing but I find out they were bragging about what would be a 19 Billion Dollar company I was just being introduced to.

Theme 1: E-Commerce

I write about this theme often and the verdict is in, many people prefer the comfort of buying things online. I know I do and a number of entrepreneurs have responded to become mega online retailers for everything imaginable.  Continue to think about the ways our buying patterns change on the Internet and take advantage of the companies that will capitalize on it first OR do it better. This will be a combination of new and old companies changing the way we shop. Remember last year, there was a reason why so many packages were delayed during the Christmas holiday by UPS and that theme is the comfort of buying things online.

- Amazon, Ebay (Paypal), Yahoo, Google, Walmart, Home Depot, UPS, Fedex

Theme 2: Mobile /APPS

The mobile wars are heating up. Finally, most of the world is warming up to a concept I've been using for quite a while: "No Debt/No Contract".  The mobile companies have used contracts to their advantage for quite some time and this has led many people to enter into never ending contracts that change usually on the companies terms. My philosophy is don't sign it until to read it. If you don't like what you read...call the company and see if you can change the terms...or don't sign it. I buy my phones myself and never enter into a contract. Many people have not paid attention to the fine print so AT&T, Verizon, and Sprint have dominated the US market. The public is tired of this model and now enters T-Mobile and their "no contract" and "cheaper packages".  And now the big companies like AT&T must follow suit with lower prices or lose customers.

Then enter the world of Apps...I can't explain the love affair for all things FLAPPY but Apps are the favorite hobby of the world.  I personally don't use very many apps but I can't deny their staying power. 

- Verizon, AT&T, Sprint, T-Mobile, Apple, Samsung, HTC, Nokia, Blackberry, Facebook, Whatsapp, Snapchat, Zynga, Candy Crush

...the remaining themes are to be continued

Federal Reserve Announces Taper / World Improving? / Stocks on My Mind

FED ANNOUNCES a $10 BILLION DOLLAR TAPER
The Federal Reserve has been pumping billions and billions of dollars into the US economy. Today was the first step by the Fed to say that the US economy, their patient, appears to be in steady recovery mode.  The recovery appears to be steady enough that they are starting to reduce the amount of medicine they have been giving to the patient...in the form of the stimulus they have been pumping into the economy.  This was a pivotal moment in the market and the reaction so far is very positive.  Investors believe that the Fed's view that the US is in recovery mode because stocks have catapulted higher. Stay tuned and let's look back in the next 3 to 12 months from now and see if we feel more jobs being created, houses being bought, and you and your friends spending more.

http://www.cnbc.com/id/101279385

ARE ECONOMIES IMPROVING AROUND THE WORLD?
I am consistently the naysayer, as I am always looking for risks that impact the markets. But I must admit the news that I have seen recently is VERY positive.  The unemployment rates are coming down in both the US and I saw a story today about the rate in the UK and this is very positive for growth around the world.  More people working means companies are hiring and people have more money to spend in the future.


STOCKS/THEMES ON MY MIND
Lululemon (LULU)- This company continues to stumble and has recently fired it's CEO for some very insensitive comments towards women.  Not the brightest move considering women are their core target group. But I also know that the YOGA and health movement is serious and people want to look the part when they get fit. I believe they are trading around roughly $59 dollars.

Caterpillar (CAT) - A company that had been in the stuck in the mud and the stock price hasn't been doing well. But they are very much impacted by global growth and with things improving this stock may make a nice move up.  Stock price has ranged from $84 to $87. I believe it trades at roughly $87 today.

Stocks Which Support Online Businesses: International Paper (IP), FedEx (FDX), UPS (UPS)
I realize that more than 75% of my purchase habits happen online. I now buy my home goods online and have had dish soap, laundry detergent, door handles, and a host of other products delivered to my house. They always come in a brown corrugated box (International Paper) and are delivered primarily by UPS when I purchase items from Amazon.  I've recently heard that groceries can be bought online very soon...see Amazon "PANTRY".  I think more boxes and deliveries are coming to both your house and mine.

Health Care: I listened to a very interesting story on National Public Radio the other day.  For the first time, health care insurers are taking major steps to advertise their products in response to the Affordable Care Act.  I don't know many things but I do know 1 thing...when companies are spending billions of dollars to advertise it's because they see an opportunity to grow and gain market share.  Insurance is a business that seems to experience very little turnover once they've signed up a customer.  If I am an example, I have had the same auto and health care provider for as long as I can think. There will be a number of winners due to the expansion of the Affordable Care Act. Investors have already realized this a number of these stocks are up significantly this year...but the biggest change to the health care sections in decades will cause some serious gains for years to come.