The Skeptic’s Guide to Tech Investing

Michael A. RobinsonMichael A. Robinson

I believe in learning about investing early.

Really early.

Here’s what I mean…

When my daughter Jordan was in the sixth grade, I had her start trading paper shares and building an investment portfolio.

And for a few years, we talked just about every night around the dinner table about her stocks’ performance – and the “whys” behind that performance… their financials and growth rates.

We even pored over their charts.

We eventually fell out of that practice as Jordan pursued sports, music, and friends (and her smartphone).

But now, as she’s pursued a degree in finance from the University of Portland, we’ve started our chats again. Not every night – but pretty often.

I couldn’t be happier – or prouder.

Recently, in fact, I helped Jordan with her senior project – investing “$100,000” in a virtual portfolio.

It will come as no surprise to you that the first words out of my mouth were, “Jordan, the road to wealth is paved by tech.”

After all, that’s been my mantra at Strategic Tech Investor since Day 1.

Working together, we came up with a plan to turn that virtual portfolio into at least $1.6 million by the time she turns 61.

It was a good exercise for Jordan… and for me. I had to confront a skeptical audience – all daughters are skeptical of their fathers – and prove my thesis.

With that in mind, I’m going to do that again today – prove to you how and why the road to wealth is paved by tech.

And I’m going to show you a great way to get started on that road…

Why This Is So Important to Me

While her assignment was virtual, I truly hope Jordan carries it forward into reality.

I don’t want her left behind.

After all, Jordan’s generation is woefully unprepared for savings and retirement.

A recent survey by GoBankingRates reveals that young people today are in deep financial trouble.

The survey showed that 58% of millennials have less than $10,000 saved for retirement. Of those, nearly 20% said they have zero cash in the bank.

But they are far from alone…

The same survey found that 42% of adults overall have less than $10,000 in retirement savings.

I truly hope that doesn’t apply to you.

But if it does, you’re in the right place.

In our twice-weekly chats here, I show you market-crushing investments that you can use to build your retirement nest egg… or pay for your kids’ college tuition… or even use for that month-long European vacation you’ve always dreamed of.

That’s up to you.

Here’s how it works…

A Wealth-Generating Machine

To me, Americans’ lack of retirement savings is incomprehensible.

See, U.S. stocks compose one of the greatest wealth engines in the world today.

If all these folks did was buy an exchange-traded fund (ETF) tied to the S&P 500 just five years ago, they would now be sitting on 84% gains.

That’s pretty respectable, but Silicon Valley is an even bigger, faster wealth engine.

If you had put your money into a tech-heavy Nasdaq Composite ETF five years ago, you’d have more than doubled their money in the period – with profits just shy of 140%.

At that rate, every $10,000 invested becomes $24,000 in just five years.

Longer term, the results are even more impressive. Since the Nasdaq began operations in February 1971 as the world’s first electronic stock market, the profits are nothing short of amazing.

Had you put $10,000 into a basket of tech stocks back then, you’d be sitting on $544,800. That same money put into the S&P would be worth a little more than half that amount, coming in at $277,700.

Silicon Valley has been outperforming the rest of the market in the turbulent year we’ve seen so far, too.

In 2018 so far – even with the late-January correction and trade war and interest-rate hike fears since then – the Nasdaq’s 8.4% gains are more than double the S&P’s 3.3% bump.

As you can see, my plan for Jordan to become a millionaire by the time she retires – via investments in Silicon Valley-style technology – is actually pretty conservative.

Here’s why that’s true…

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Michael A. RobinsonMichael A. Robinson

About the Author

Browse Michael’s articles | View Michael’s research services

Michael A. Robinson is one of the top financial analysts working today. His book “Overdrawn: The Bailout of American Savings” was a prescient look at the anatomy of the nation’s S&L crisis, long before the word “bailout” became part of our daily lexicon. He’s a Pulitzer Prize-nominated writer and reporter, lauded by the Columbia Journalism Review for his aggressive style. His 30-year track record as a leading tech analyst has garnered him rave reviews, too. Today he is the editor of the monthly tech investing newsletter Nova-X Report as well as Radical Technology Profits, where he covers truly radical technologies ones that have the power to sweep across the globe and change the very fabric of our lives and profit opportunities they give rise to. He also explores “what’s next” in the tech investing world at Strategic Tech Investor.

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