A 50-year technological revolution is about to begin. These are the actions to own, according to a strategist

0
122


Is the stock market rally ready to stop? Gains look volatile as we wait for employment data, and the European Central Bank, which is expected to add to pandemic stimulus shipments credited for protecting stocks and investors from bad news.
The S&P 500
SPX,
+ 1.36%

is now up 40% from its March 23 lows, and some are nervous. It may be beneficial to think longer term now.

Our call of the day, from Brad Neuman, investment strategist at Equities Manager Algiers, is banking on 50-year technological revolutions, noting that we’ve just completed one that ended with smartphones and information in the palm of your hand.
“We think we are in a new long-term technological revolution, which we call the era of connected intelligence … and that means we think there will be a lot of connected devices,” Neuman told MarketWatch . Think of the “Internet of Things” and a lot more data produced and processed in the cloud, and more access to that data for everyone at an affordable price.

“Ultimately, all of this data analyzed by these very advanced hardware and software systems manifests itself through artificial intelligence and better decision making,” he says.
How to play it? Via semiconductor and equipment manufacturers, such as LAM Research
LRCX,
+ 5.68%,
that help process data or cloud platform companies like Amazon
AMZN,
+ 0.24%

and Microsoft
MSFT,
+ 0.24%

that provide hardware and software to analyze the data and will eventually provide artificial intelligence as a service.
Payments are also a key theme in connected intelligence, which means owning Visa
V,
+ 0.26%

and PayPal
PYPL,
-0.45%.
And healthcare is also a “good microcosm” on the topic of big data analytics and their proper use, says Neuman. The Algiers team therefore has companies that supply materials and equipment to do so, such as Thermo Fisher
TMO,
-0.82%

or Bio-Techne
TECHNOLOGY,
-1.67%.
Finally, you can purchase cloud-based software companies to help develop and market drugs – such as Veeva Systems.
VEEV,
-1.99%,
he says.
So why a strategy like this right now? “One of our main beliefs in Algiers is that innovation can transcend economic volatility. In any period of the past 150 years … there is always an area of ​​innovation that is flourishing and companies that grow as a result, “said Neuman.
Opinion: If the time is right for value stocks, this Diversified Dividend ETF may be suitable.

The market

Dow
YM00,
-0.35%,
S&P
ES00,
-0.43%

and Nasdaq
NQ00,
-0.21%

futures contracts are down. European actions
SXXP,
-0.50%

broke out, but not on Thursday, as the European Central Bank meeting looms. The Asian markets had an essentially positive day.

Table

Speaking of central bank spending, here’s a 300-year look at what’s going on at the Bank of England:

Buzzing

Prior to Friday’s payroll data, weekly jobless claims are expected to slow to 1.8 million, but continued claims may provide better clues to a recovering economy. The trade deficit and revised productivity data are also underway.
Slack Work Chat Application
JOB,
+ 3.96%

will report after closing with Broadcom technology group
AVGO,
+ 3.84%.

And the ZoomInfo online meeting group
ZI,

evaluated its initial public offering at $ 21, exceeding an already high range.
The four police officers involved in the death of civilian George Floyd face new charges. It’s like a rainy night in New York and an early curfew kept the protests calm on Wednesday night. Former Defense Secretary James Mattis relieved President Donald Trump of his threat to bring in the military to arrest the protesters, saying “he is trying to divide us”.
On the coronavirus front – 10 million people have been tested in Wuhan and only 300 infections have been found, and scientists studying the disease say it does not turn into a bigger threat.

Random readings

There is a new suspect in the 2007 disappearance of the British child Madeline McCann.
New York Times employees are furious
hawkish opinion article on the protests.
Spanish porn star arrested for toad venom death.

The need to know starts early and is updated until the opening bell, but register here to have it delivered once to your email inbox. Be sure to check the Need to Know item. The e-mail version will be sent around 7:30 am Eastern time.
Follow MarketWatch on
Twitter, Instagram, Facebook.



LEAVE A REPLY

Please enter your comment!
Please enter your name here