If you invest in stocks, it’s essential to learn about new trends and technologies as soon as possible. Significant changes can disrupt entire industries and force major companies to adjust their business models. These three developments could have a massive impact:
1. Printing New Houses
Three-dimensional printing systems have an enormous potential to revolutionize manufacturing processes. They could even become useful to the construction industry. Recent natural disasters will increase the demand for this amazing technology. Hurricanes Maria, Harvey and Irma inflicted more than $300 billion in damage.
Irma ruined about one-quarter of the Florida Keys’ residential buildings, and Harvey demolished nearly 13,000 dwellings. Maria destroyed almost every structure on the island of Dominica. Residents need a faster, more affordable method to replace these buildings.
A firm known as Cazza may have identified a way to solve this problem. The company has combined three-dimensional printing with robotics. It created a robot that has the potential to construct homes, offices, storm shelters and storage buildings within seven days.
This technology could reduce construction expenses by up to 40 percent, according to Cazza. If a construction company typically spends $65,000 to build a single-family home, robots and 3-D printing may reduce this expenditure to $39,000. They might be able to cut the cost of 2017’s hurricane rebuilding projects by more than $38 billion.
Consequently, it makes sense to think about investing in Cazza and similar companies. Three-dimensional printing technology could help far more people afford new homes and additions. If a certain firm perfects this method before others, its stock value will swiftly rise.
2. Amazon’s Online Pharmacy
When Amazon enters a new industry, competitors’ share prices often tumble. They can take years to recover and may never reach their former values. Amazon plans to get involved in the pharmacy sector, and this could affect valuable stocks that currently pay dividends.
Many investors believe that prescription drug retailers offer a safe investment option. The top pharmacy chains face relatively few competitors. Nonetheless, this industry has traits that make it highly vulnerable to Amazon. Numerous middlemen profit from medication sales in traditional stores.
Walgreens, Express Scripts, CVS and similar firms have made a considerable amount of money by selling prescription drugs to customers who can’t easily compare prices. The downside is that people frequently pay exorbitant sums for their medications. These expenses also result in higher taxes and medical insurance premiums.
The prescription drug industry has a huge impact on the total cost of health care. Each year, Americans pay nearly $460 billion for these medicines. Some experts predict that this expense will exceed $600 billion within four years.
Amazon normally attracts customers by boosting efficiency and making it easier to compare prices. If it applies this strategy to the pharmaceutical industry, prescription drug costs would probably fall and traditional pharmacies will suffer.
Pharmacy stock values have already begun to drop. The share prices of Walgreens, CVS and Express Scripts fell by 27 to 37 percent in recent times. Online prescription drug sales could also harm supermarkets and department stores with pharmacies.
Medication prices have become easier to find on the internet, making it possible for shoppers to compare the costs at different retailers. Amazon can enhance this data while publicizing it broadly. The company could easily use it to steer customers toward online purchases.
Amazon reduced product prices after it acquired Whole Foods Market. It will do the same when it becomes a major online pharmacy, and this could force traditional drug stores to lower their prices. A combination of smaller profits and fewer sales will cause their stocks to plummet.
3. Virtual Reality Improves
The latest augmented and virtual reality systems create remarkable experiences. Users feel as if they’ve taken over the bodies of astronauts, investigators and other video game protagonists. Stock investors may reap tremendous rewards by recognizing the potential of this sophisticated entertainment and education technology.
Today’s virtual reality games still haven’t reached the level of refinement that would make them appeal to a general audience. However, companies like Facebook continue to invest billions in VR technology every year. They will probably achieve impressive progress in the near future.
Researchers at International Data Corporation predict that augmented and virtual reality sales will surge to more than 10 times their current level in only three years. This trend may result in soaring share prices at corporations like Intel, Samsung, Facebook, Google and Microsoft. It could also harm entertainment companies that continue to focus on TV-based gaming or broadcasting.
All three trends present great opportunities and serious risks. Some stocks will soar as innovators find new ways to satisfy customers or cut costs. Other companies’ share values could plummet unless they successfully adapt to a changing economy.
Why Follow This Advice?
These well-researched warnings and tips come from talented investor Paul Mampilly. He has managed a hedge fund, earned prestigious awards and established his own investment consulting firm. Mampilly’s business experience spans more than two decades, so investors can trust him to deliver valuable insights.
In 2008, the Templeton Foundation held a financial contest that helped prove the value of his expertise. Participants competed to make investments that would produce the best returns. Despite a lengthy recession, Paul Mampilly won the competition by investing $50 million and generating $38 million in profits.
Paul Mampilly’s Background
The renowned investor started life in India and moved to the United States as a child. In 1991, he began working for major financial institutions. They included Bankers Trust, ING, the Royal Bank of Scotland and Deutsche Bank. He became an exceptionally successful hedge fund manager in 2006.
Mampilly made wise investments in companies like Netflix and Sarepta Therapeutics. He was able to partially retire at only 42 years of age. The financial expert currently lives in North Carolina. He writes investment advice articles and enjoys reading books about the stock market.
Readers can find Paul Mampilly’s recommendations on well-known websites like The Daily Reckoning, TalkMarkets and Stock Gumshoe. Major financial TV networks occasionally interview him. The Profits Unlimited newsletter delivers his best advice on a regular basis.