Best of the Week
Most Popular
1. Gold vs Cash in a Financial Crisis - Richard_Mills
2.Current Stock Market Rally Similarities To 1999 - Chris_Vermeulen
3.America See You On The Dark Side Of The Moon - Part2 - James_Quinn
4.Stock Market Trend Forecast Outlook for 2020 - Nadeem_Walayat
5.Who Said Stock Market Traders and Investor are Emotional Right Now? - Chris_Vermeulen
6.Gold Upswing and Lessons from Gold Tops - P_Radomski_CFA
7.Economic Tribulation is Coming, and Here is Why - Michael_Pento
8.What to Expect in Our Next Recession/Depression? - Raymond_Matison
9.The Fed Celebrates While Americans Drown in Financial Despair - John_Mauldin
10.Hi-yo Silver Away! - Richard_Mills
Last 7 days
Predictive Modeling Suggests US Stock Markets 12% Over Valued - 27th May 20
Why Stocks Bear Market Rallies Are So Tricky - 27th May 20
Precious Metals Hit Resistance - 27th May 20
Crude Oil Cuts Get Another Saudi Boost as Oil Demand Begins to Show Signs of Life - 27th May 20
Where the Markets are heading after COVID-19? - 27th May 20
Silver Springboards Higher – What’s Next? - 26th May 20
Stock Market Key Resistance Breakout Is Where the Rubber Meets the Road - 26th May 20
5 Ways To Amp Up Your CFD Trading Today - 26th May 20
The Anatomy of a Gold Stock Bull Market - 26th May 20
Stock Market Critical Price Level Could Soon Prompt A Big Move - 25th May 20
Will Powell Decouple Gold from the Stock Market? - 25th May 20
How Muslims Celebrated EID in Lockdown Britain 2020 - UK - 25th May 20
Stock Market Topping Behavior - 24th May 20
Fed Action Accelerates Boom-Bust Cycle; Not A Virus Crisis - 23rd May 20
Gold Silver Miners and Stocks (after a quick drop) Ready to Explode - 23rd May 20
3 Ways to Prepare Financially for Retirement - 23rd May 20
4 Essential Car Trade-In Tips To Get The Best Value - 23rd May 20
Budgie Heaven at Bird Land - 23rd May 20
China’s ‘Two Sessions’ herald Rebound of Economy - 22nd May 20
Signs Of Long Term Devaluation US Real Estate - 22nd May 20
Reading the Tea Leaves of Gold’s Upcoming Move - 22nd May 20
Gold, Silver, Mining Stocks Teeter On The Brink Of A Breakout - 21st May 20
Another Bank Bailout Under Cover of a Virus - 21st May 20
Do No Credit Check Loans Online Instant Approval Options Actually Exist? - 21st May 20
An Eye-Opening Perspective: Emerging Markets and Epidemics - 21st May 20
US Housing Market Covid-19 Crisis - 21st May 20
The Coronavirus Just Hit the “Fast-Forward” Button on These Three Industries - 21st May 20
AMD Zen 3 Ryzen 9 4950x Intel Destroying 24 core 48 thread Processor? - 21st May 20
Dow Stock Market Trend Analysis and Forecast - 20th May 20
The Credit Markets Gave Their Nod to the S&P 500 Upswing - 20th May 20
Where to get proper HGH treatment in USA - 20th May 20
Silver Is Ensured A Prosperous 2020 Thanks To The Fed - 20th May 20
It’s Not Only Palladium That You Better Listen To - 20th May 20
DJIA Stock Market Technical Trend Analysis - 19th May 20
US Real Estate Showing Signs Of Covid19 Collateral Damage - 19th May 20
Gold Stocks Fundamental Indicators - 19th May 20
Why This Wave is Usually a Market Downturn's Most Wicked - 19th May 20
Gold Mining Stocks Flip from Losses to 5x Leveraged Gains! - 19th May 20
Silver Price Begins To Accelerate Higher Faster Than Gold - 19th May 20
Gold Will Soar Soon; World Now Faces 'Monetary Armageddon' - 19th May 20
Gold Mining Stocks Fundamentals - 18th May 20
Why the Largest Cyberattack in History Will Happen Within Six Months - 18th May 20
New AMD Ryzen 4900x and 4950x Zen3 4th Gen Processors Clock Speed and Cores Specs - 18th May 20
Learn How to Play the Violin, Kids Activities and Learning During Lockdown - 18th May 20
The Great Economy Reopening Gamble - 17th May 20
Powell Sends a Message With Love for Gold - 17th May 20
An Economic Renaissance Emerges – Stock Market Look Out Below - 17th May 20
Learn more about the UK Casino Self-exclusion - 17th May 20
Will Stocks Lead the Way Lower for Gold Miners? - 15th May 20
Are Small-Cap Stocks (Russell 2k) Headed For A Double Dip? - 15th May 20
Coronavirus Will Wipe Out These Three Industries for Good - 15th May 20
Gold and Silver: As We Go from Deflation to Hyperinflation - 15th May 20

Market Oracle FREE Newsletter


Tech’s Fastest Growing Sector Could Make You Rich

Companies / Tech Stocks Oct 08, 2014 - 08:35 AM GMT

By: Money_Morning


Short sellers have their knives out for GoPro Inc.

And that’s the least of the wearable sports camera maker’s problems right now.

GoPro’s share priceseems to be flopping around wildly on news: surging 11% after a new product announcement, then sinking the same after the company’s founders found a loophole that allows them to sell some of their stock early.

The stock has spiked again since then – but I don’t expect that to last.

I believe GoPro has done this well for this long – soaring more than 180% since its June initial public offering – because it is the poster child for a market sector that is set for a major boom.

According to the IDC forecasters, wearable tech will grow 78.4% through the end of 2018. If we want to get on the road to wealth that tech provides, then this is a sector we must cash in on.

But I don’t want us to get hurt by messing with a risky stock like GoPro.

That’s why today I’m going to show you a way to play the entire wearable-tech sector with a single investment that offers both safety and big profits…

Way Beyond Action Cameras

Don’t get me wrong. I love GoPro Inc. (Nasdaq: GPRO) as a company. I like its story and I’m a fan of its technology – wearable cameras that “extreme” cyclists, surfers and skiers use to capture and post their incredible stunts.

In this market, however, we just can’t justify paying 80 times forward earnings. And besides being a risky stock, GoPro is just a start to the world of wearable technology.

That became abundantly clear Sept. 9 when Apple Inc. (Nasdaq: AAPL) introduced the Apple Watch. Due out next year, the smart watch can be integrated with the iPhone, used with the new Apple Pay mobile-payments system and loaded up with dozens of goods from the App Store.

More to the point, I think it will be a huge success. Morgan Stanley agrees, saying that the Cupertino, Calif.-based tech giant could sell 30 million to 60 million Apple Watches in the first year alone.

That’s huge.

According to the researchers at ON World,consumers purchased just 4 million smart watches last year. But ON World predicts shipments will hit 330 million in 2018 – a stunning 8,150% increase in just five years.

And that’s only one segment of the wearable tech market. Wearables also include medical devices, fitness and health monitors, GPS trackers and virtual-reality headsets.

Google Inc. (Nasdaq: GOOG) has several fingers in the wearables glove. You know Google Glass. Worn as eyeglasses, the system displays text messages and maps, takes notes, records video, takes pictures and displays video.

And Google is using its Android operating system to make an ecosystem play. Android Wear is designed to work with wearable devices from several developers and makers.

As much as I like GoPro, Apple and Google, it’s important to note that we’re still at the dawn wearable tech.

It’s a bit early to try picking the winners from the losers. What we’re looking for now is a way to capture as much upside as possible from the whole sector.

That’s where the Vanguard Information Technology ETF (NYSE Arca: VGT) comes in. It’s an exchange-traded fund composed of 90% technology stocks, most of which are based in the United States.

Vanguard Info Tech has some 413 holdings, but more than half of its assets are in the fund’s top 10 stocks. For instance, Apple and Google make up 22.6% of the ETF’s holdings.

That right there gives us two major wearable plays. But Vanguard Info Tech holds at least four other wearable leaders. Take a look…

Wearable Vanguard No. 1: Intel

After nearly striking out on the mobile revolution, VGT holding Intel Corp. (Nasdaq: INTC) wants badly to sell its Edison semiconductor chips to wearable developers.

And to bolster and promote the entire sector, Intel is sponsoring the Make It Wearable contest, with a $500,000 grand prize for the most innovative product.

Besides selling chips, Intel is also making some moves into consumer products.

Earlier this year, the world’s leading semiconductor firm acquired Basis Science Inc. That $100 million play gives Intel a line of wearable fitness devices.

Intel plans to further expand into wearables with a line of MICA smart bracelets. The fashion-centric line is the highlight of Intel’s recent partnership with watchmaker Fossil Group Inc.(Nasdaq: FOSL) and clothing retailer Opening Ceremony.

The Santa Clara, Calif.-based company also offers Jarvis, a smart headset that functions similarly to digital assistants like Apple’s Siri and Google Now.

Wearable Vanguard No. 2: Microsoft

Meanwhile, Microsoft Corp. (Nasdaq: MSFT) is focused on the software aspect of wearables. Like Intel, Microsoft largely missed the mobile revolution, but it has no intention of making that mistake with wearables.

Microsoft recently released a software suite for wearable devices, primarily smart watches. OneNote, a free app designed for Android Wear, is being offered through Google Play.

At the same time, Microsoft will soon release its own smart watch. The sensor-laden device will serve as a fitness tracker and will sync with iPhones, Android phones and Microsoft’s own Windows Phone system.

Wearable Vanguard No. 3: Garmin

Primarily known for navigation devices, Garmin Ltd. (Nasdaq: GRMN) is not only leveraging off its GPS expertise. With wearables, it’s also focused on fitness and health, which is the company’s fastest-growing division.

For instance, Garmin’s fitness bands allow users to track their physical activity, including daily number of calories burned and steps taken as well as sleep patterns.

The company clearly picked a growth segment. According to market forecaster Canalys, we bought 1.8 million smart bands like those made by Garmin last year. That number will likely climb to more than 45 million by 2017.

Garmin also makes several sport watches that feature GPS tracking and fitness monitoring. And its Forerunner watches feature touchscreen technology that helps swimmers improve their stroke.

Wearable Vanguard No. 4: Ambarella

And then there’s Vanguard Info Tech’s backdoor play on GoPro – our old friend Ambarella Inc. (Nasdaq: AMBA).

Ambarella makes the video-processing chips that make GoPro’s cameras such a success.

And the company goes well beyond the wearable market. It makes video processing chips used in just about every digital camera we own – auto backup cameras, surveillance cameras, smartphone cameras, TV broadcast cameras.

And that, in turn, reinforces one of the great selling points of Vanguard Info Tech – diversification.

This ETF not only gives us a broad play on wearables but also covers a wide swath of other technology, including software, semiconductors, cloud computing, Big Data and mobile.

Trading at roughly $98.50 a share, Vanguard Info Tech is well ahead of the overall market. Over the past six months, it has doubled the S&P 500‘s 3% return, and it’s nearly 40% ahead of the market over the past year.

With its lineup of top tech names – and a concentration in tech’s fastest-growing sector – this is a great long-term play.

Vanguard Info Tech is an investment that captures the quick profit potential in wearables while still helping you build a solid investing foundation.

Throw in market-beating performance and you have a real winner on your hands.

Do you own any wearable tech? Are you going to buy an Apple Watch for yourself or a grandkid when it debuts? Even better, are you invested in any wearable companies? Let me know in the comments below.

Source :

Money Morning/The Money Map Report

©2014 Monument Street Publishing. All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Monument Street Publishing. 105 West Monument Street, Baltimore MD 21201, Email:

Disclaimer: Nothing published by Money Morning should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investent advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication, or after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Money Morning should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

Money Morning Archive

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules