| | | |  | The Next Bull Market - Growth in Infrastructure, Alternative Energy, Technology, Medical Advances
Nothing is more certain than the fact that a new Bull Market will emerge once all the weak investors have capitulated and the estimated 5 Trillion dollars ($5,000 Billion) sitting in cash and bonds starts hitting the stock market. The timing of this is the only unanswered question. I suspect we are talking weeks or months before the start of the next bull market. Maybe it’s already started – time will provide that answer.
But will the next bull market pick up where we left off? Will the same stocks that boomed in the period 2003-2007 be the stocks you should be in now? Some will be, some won' t.
To find rapid growth stocks is not easy and it takes a little crystal ball gazing. Sometimes, just looking at growth estimates and financial statements are not enough. You have to imagine what the world will look like in 2-5 years and how we’ll be living our lives. There are, however, some certainties we can count on. We’ll see constant pressure on energy costs and companies and governments will be doing their level best to ensure energy costs are kept under control, despite ever-increasing costs in finding and recovering resources. This will prompt money pouring into efficient alternative energy production and new infrastructure to improve efficiency. Most nations are now re-newing and building new infrastructure for power transmission, environment management, water resources and mining efficiency. Infrastructure stocks like those in my Trident Confidential Buy List, have never had such huge backlogs of business. Going forward, these companies will be turning in amazing profits results.
Alternative energy will not replace the traditional fossil fuel energy, but it will supplement it, and become a fast growing industry. We are seeing just the beginning of Wind and Solar power being a more significant energy source. It's simply a matter of investing in the stocks that have the right technology and can convert that technology into savings for government and industry. Leaders are already emerging, and they will be in the portfolio for sure. Where no leader can be indentified, I’ll be taking the “picks and shovels” approach. That is, investing the stocks that supply all the companies in the sector, regardless of their technology. For example, wind energy is early in it’s evolution and a clear technological leader has yet to emerge, so I tracked down the company that builds most of those huge towers that the turbines sit on top of. If wind power takes off, as I suspect it will, regardless of the technology, the towers will still be supplied by the company featured in this month’s issue of Trident Confidential.
When you try and look into the future, you also realise the baby boomers will all start retiring. These are the richest people of any generation. As they get older they will put great demands on health care. They will all want to retain their “youth” and enjoy the wealth they have built. They’ll require the benefits of medical science to do this. Bottom line is, no-one wants to die. So, I’ll be seeking out companies that are at the forefront of medical innovation. We have a few in the portfolio already, but I’ll be adding more when the opportunity arises. In the latest issue, I have added three very exciting stocks, one involved in genetic research another involved in testing equipment, and the last is a biological medical device company providing implantable biological devices, surgical adhesives, and biomaterials for use in cardiac, vascular, and spinal reconstruction. Over the next year or two, you’ll be hearing a lot more about these companies and their unique patented products and services that will save lives. |
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