An Illustration of the Technochasm — and a Chance to Get on the Right Side


It can be tough to visualize the Technochasm.

A photo of chess pieces and coins on a table with a stock chart superimposed over top.

Source: Things/

Generally, we all know that tech stocks are dominant in the market, but most people don’t realize that it is really tearing the market in two.

The way the market played over the past couple of years illustrated this beautifully. After the market plummeted when the novel coronavirus pandemic rocked the world, tech stocks led the comeback.

But with all that creative power comes a destructive side. A side where the businesses that haven’t adapted to technology are sinking fast.

Here is a great way to help see it.

The sharply rising line that has soared 200% during the last four years is the Technology Select Sector SPDR ETF (NYSEARCA:XLK) (in gold), while the modestly rising line that has gained one third as much is the Industrial Select Sector SPDR ETF (NYSEARCA:XLI) (in blue).

That gap in the returns is a clear manifestation of the Technochasm. It looks like the two lines were literally ripped apart starting in 2019.

On the winning side of this gap are thriving technology-powered businesses and professions. On the other side we find old-school energy stocks… and everything else.

XLE carries a lot of heavy hitters, including traditional market leaders such as Chevron Corp. (NYSE:CVX), Exxon Mobil Corp. (NYSE:XOM), and Schlumberger NV (NYSE:SLB).

So, if your portfolio was heavy with energy stocks the last few years, you likely lost money. Meanwhile, just investing in a tech ETF yielded gains of 200%. Imagine what your gains would have looked like if you’d boosted even those gains by buying disruptive, small-cap stocks!

Let’s not forget that both groups of stocks are part of the S&P 500. So, as tech stocks have carried the market higher, other stocks in older industries have only dragged it down.

What to Do Now

When I started talking about the Technochasm about a year ago, I asked you to do two things right away.

  • Purge your portfolio of the mediocre “yesterday stocks” that are taking up valuable shelf space. You simply can’t afford to hold merely average stocks in your portfolio any longer.
  • Make sure you own the fastest growing, most disruptive, and most profitable “outsider” tech companies available in the markets today.

I hosted the Tech Supercycle Summit on Tuesday night to help folks complete that second step. If you haven’t seen it yet, you can view the replay here.

Many of you have watched my first video about the Technochasm on YouTube. It has been viewed nearly 20 MILLION times! That first video was about helping regular folks gain knowledge — and to protect them from ending up on the wrong side of the gap.

But the Tech Supercycle Summit is all about opportunity.

In the video, I reveal how you can capitalize on the Technochasm.

And I was thrilled that investing legend Louis Navellier wanted to join me during the event. Louis and I had met and seen each other around the InvestorPlace office, but when he read about the Technochasm and learned about my event, he demanded a seat at the table.

Louis and I have different methods for choosing stocks. I’m a macro analyst who scans the world for big trends… and then drills down for the best opportunities.

Why Louis Navellier Joined Me

Louis is a quant. He runs computer models on 5,000 stocks a week to find the ones with the best fundamentals… including sales growth, earnings growth, and institutional buying pressure.

Although our methods differ, our conclusions are the same.

If you’re going to survive and thrive in the markets in the 2020s, you must be invested in tech, and ideally in the fastest growing, most highly disruptive, and most profitable tech companies that are available in the market today.

When Louis and I sat down to compare notes, we were able to compile a list of small tech stocks that are poised to take off. And they’re all within a sector — one specific advancement — that is quickly emerging as a leader in the $56 trillion tech supercycle that Louis and I talk about during the event.

We got to work narrowing the list to just a handful of stocks that are growing revenue fast, eating up market share, and starting to kill more established businesses within that sector.

Together, we developed a unique, small-cap-focused portfolio — and we unveiled it at the Tech Supercycle Summit.

Louis and I both believe you could make well over $100,000 in the next 12 months from this small group of stocks that are ready to take off now.

You still have time to get on the right side of the Technochasm and make an enormous amount of money — but you won’t have forever. Many of the small-cap opportunities Louis and I spotted will become household names in the years to come.

Take another look at the chart I shared earlier.

The Technochasm is real, whether you change your investing habits or not.

Make sure you do your best to end up on the right side.

Get started by viewing a replay of the Tech Supercycle Summit today.


Eric Fry

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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. In fact, Eric has recommended 41 different 1,000%+ stock market winners in his career. Plus, he beat 650 of the world’s most famous investors (including Bill Ackman and David Einhorn) in a contest. And today he’s revealing his next potential 1,000% winner for free, right here.

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