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

Easier Said Than Done...

“It’s been a long time, shouldn’t have left you without a dope beat to step too…”  As you know I have a love for music, especially hip-hop, so when I am thinking a song will often pop into my head.  Here, I am thinking of how long it’s been since I’ve written something to the readers out there.  I admit work, life, and stuff happens but I shouldn’t have left you without a nice article to think about.

I would like to start off by simply just being honest!  One of the primary reasons I have not written anything is that in REALITY there is not that much going on in the investment world.  Maybe I should say it different, the markets have been steadily going UP and there hasn’t been much else.  If you remember, there have been a few moments in the last year or so where I wrote that the stock market indicators lead me to believe that stocks and the overall market were headed higher for the foreseeable future.  If I were a TV personality, I can say “We Predicted This Would Happen!” but the reality is it took months and months of reading, researching, and keeping my eyes and ears open to rationalize where things were logically headed.  The goal while investing is to navigate through ALL of the NOISE (family, friends, and TV people telling you how to invest) and for you to logically conclude about where things like are headed.  Once you get a good idea about that then you can determine what and how much to invest in.  I am here to simply share my thoughts on how I navigate through the noise so that I can share those with you and I can learn from the past by coming back and reading my own writings.  This is helpful in life, because you must navigate through the noise (when choosing a house, car, job, etc.) and really get down to making a sound decision.

Here I am always looking to make a sound investment and I’m going to present 1 topic to assist you on your investment journey:

Easier Said Than Done…

Urban Download...

Am I a degenerate investor...YES!  Most people will attest to the fact that I have a Wall Street Journal with me everywhere I go.  I like reading and taking in data because these bits of data each day may eventually lead to bigger things.  I may wanna know about the latest technology that is disrupting 'Business As Usual', random opinions about why gas prices are high, and I even keep up with companies that are Buzzworthy.  Some of these are great for talks around the water cooler, others good to know, and just maybe one day I may connect some dots and find something that makes a compelling argument for an investment one day.

Technology Disruptor

VIBER (http://www.viber.com/)

This app for your phone seems like a really cool idea.  They've been labeled the Skype for your phone and claim to allow you to call and text any other user for FREE.  No user ID is needed because it recognizes your phone number once downloaded and even automatically adds any friends that have VIBER without needing to search and add for those users.

Anyone using this app...please post your feedback

Things that Make You Go Hmmm....

I was listening to people that follow the market and the Gas industry and found the following details interesting:

1) Gas prices have been up every day since Jan 17th
2) Whenever gas has hit $3.80 as a national average...the economy has turned sour
3) From here going into the summer driving season, gas prices usually rise another 26%

Buzzworthy

Groupon - Everyone has an opinion on this stock. They reported earning and the market didn't like what it heard.  Down 24% 
GRPN Story

Zynga - The hitmaker of your favorite apps is making a brake for the 'Online Gaming' industry. Stay tuned. 
Zynga Bets On Gaming

Herbalife - The debate continues on whether this company is legit or a Ponzi Scheme.

Hewlett Packard - Back from the brink of death??? They will be selling a $169 tablet.

Yahoo - The CEO (Marissa Mayer) just told their employees that telecommuting is no longer an option. Ouch...get back to work.

New Tech Titans, Double Dips, & Don't Label Me...

New Tech Titans

The technology field is definitely active as social networking, gaming, movies, and music continue to seamlessly weave themselves into our daily lives. It's time to refresh your memory on the new tech titans on the block.  First off, Facebook leads the charge with their recent announcement of new features: (1) group chat, (2) new designs, & (3) video chat. Many people can't wait for the day this stock IPO's or goes public.  Next is Google, who is offering Google+ a competing social network site and chomping at the bit for more targeted advertising.  And then there is the simplicity of Netflix.  Netflix is now streaming throughout many homes on a regular basis and they are betting that you will stick around even as they raise prices.  Sorry to break the news but Netflix prices are going up for everyone...will you pay up?

Other hot technology firms are Linked In, Pandora, Zynga, Square, and others which are changing the way we interact, watch movies, and listen to music. Then we have Groupon which could be potentially be valued ar roughly $20 Billion dollars when they IPO, or become a public company.  The question often asked is “Do You Remember The Technology Bubble?” and is it happening all over again. I do believe that some of these firms are legit, but I think a few won't be as popular as they are today. Stay tuned for further posts as I tackle which technology stocks will survive the digital renaissance.

Double Dip??

The economy may be suffering from a really bad hangover that was worse than we originally thought.  Financial stocks, housing stocks, and high levels of consumer debt make you wonder if we've learned anything at all from the 2008 crisis.  I just don't have the feeling that we are out of the woods yet and I've been cautious for quite awhile.  I don't think I am alone anymore as there have been rumbling about more stimulus...is there Quantitative Easing on the horizon, well the Fed might think so.  Can you say QE3