We all know the top technology stocks have been crushing the market for years. But that’s yesterday.
As investors, we care about the right now … and, even more importantly, the future.
The Nasdaq 100 is up 7% over the last three months and keeps hitting new highs. Although the coronavirus from China is finally leaving its mark, the index is still outperforming the S&P 500 and the Dow Jones Industrial Average. And, if you look at the Dow Jones Transportation Average you can see the transports are hurting.
Tech stocks are creating extreme amounts of wealth — and faster than ever before.
Look at Shopify (NYSE:SHOP), for example. The stock is up 150% in just the last year … and an unbelievable 2,700% in the past four years!
I could show you countless other examples of the strength in technology right now.
Oil vs. tech … mining/materials vs. tech … and they all look the same. Technology stocks are crushing everything.
But this isn’t just a phenomenon that has been going on for the last three months. Not even the last year … or the last three years. This trend has been taking place for over a decade.
The chart below shows the performance of the Nasdaq 100 (the blue line) since 2008 as compared to the S&P 500 (the yellow line), the Dow Jones Transportation Average (the orange line) and the NYSE Arca Oil & Gas Index (the gray line).
As you can see, the Nasdaq 100 delivered double the performance of the S&P 500 Index … triple the performance of the transports … and 12 times the performance of oil.
Simply put, tech’s outperformance is — simply — outstanding.
You could call this gap between technology stocks and the rest of the stock market a “Technochasm.” And that gap is widening before our eyes.
The reason for this is simple.
And it will be very lucrative for the 1 in 1,000 investors who take the time to turn it to their advantage…
I Want to Say One Word to You — Just One Word
That “reason” basically costs nothing to produce once it’s developed.
And companies can sell it for a lot.
I’m talking about software.
Even better, they can rent it out — in a process known as software-as-a-service (SaaS) — for even more over the long run.
Software is the oil of the 21st century. It’s the greatest force for wealth creation on Earth.
And I’m not talking about conventional wealth creation, where it takes 30 years to save up $1 million.
I’m talking about wealth creation on steroids.
Given all the time, money and frustration that software saves us, it’s no wonder it has kicked off one of the largest, fastest accumulations of wealth in human history.
It’s become the world’s ultimate wealth creator because we all place an enormous value on its ability to save us time and headaches … and because it’s made us massively more productive.
The fastest legal way to get rich in America is to own a piece of a valuable software program or algorithm. Owning a piece of a software program isn’t something most folks rave about at cookouts and cocktail parties, but that’s why most folks will never truly understand wealth creation.
The smart money knows that if you want to build wealth quickly, you invest in software companies.
No other kind of investing comes close.
Like I said before, software is why we’re seeing such an enormous gap — such an enormous Technochasm – between the performance of tech stocks and the rest of the market.
But there’s another Technochasm out there.
And it’s one that also deserves your immediate attention…
The Other Technochasm
I’m talking about the increasing wealth gap.
According to Pew Research Center, the richest 20% of Americans controlled 43% of the country’s income in 1968. Fast-forward 50 years … to 2018 … and the richest 20% of Americans controlled 52% of the country’s income.
The top 5% of American households brought in 16% of the country’s wealth in 1968. By 2018, that percentage had ballooned to 23%.
Data from the Organization for Economic Cooperation and Development tells us that the wealth gap in the United States is greater than that in any of the other G7 nations — Canada, France, Germany, Italy, Japan and the United Kingdom.
And this inequality is only going to get larger and larger.
I wish I could tell you this situation will be resolved soon.
But it won’t … and I’m not sure it ever will be.
Here’s the good news: There is a way to make sure you and your portfolio are on the right side of the Technochasm.
In fact, I believe this will be the No. 1 factor affecting your money over the next few years.
I recently brought along a film crew to produce a special video presentation so I could show you exactly what’s going on … and why this is so important.
Take a minute or two to check out my on-camera segment, which we’ve posted on our website, here.
I’ll see you back here soon.
P.S. The stock that I believe could be my next 1,000% stock market winner recently went public. It’s a company I can almost guarantee you’ve never heard of, but it’s already one of the most profitable businesses on Earth.
It’s a remarkable story … which is why I just put together a detailed analysis that explains the entire situation and reveals the name and stock market ticker symbol of what could be my next 1,000% winner, totally free of charge. There’s no catch. No email, credit card or subscription required.
Watch my analysis now and get the name and stock symbol of what could be my next 1,000% winner, free of charge, right here…
Eric Fry is an award-winning stock picker with numerous “10-bagger” calls — in good markets AND bad. How? By finding potent global megatrends … before they take off. And when it comes to bear markets, you’ll want to have his “blueprint” in hand before stocks go south. Eric does not own the aforementioned securities.