Why Small-Cap Investors Should Pay Attention to Themes

January 7, 2019, By fierceinvestor,
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No one has ever said investing was a walk in the park.

But you’d be surprised how many are making it near impossible to find success.

That’s because they try a million different things.  They get far too wrapped up with too many ideas. And they lose track of one of the best ways to make money today.

Unbelievably, an astonishing nine out of every 10 investors fail because:

  1. Many don’t have good training, or guidance
  2. They’re not aware of risk, thinking the stock market is a “get rich” scheme
  3. They don’t think long-term.  They want instant gratification.
  4. They blindly follow the crowd, becoming one of the sheep
  5. They fail to trade without emotion.
  6. They fail to trade with a property strategy or even diversify.
  7. They fail to learn from their mistakes.

In addition, one of the worst things many investors – especially new ones do – is they get caught up in what the press hounds would have them believe.

But that’s a great way to lose money.

Everyone in conventional financial media shouts about their favorite stock picks.

But we believe that if you really want to become a better investor then you need to be looking at where the smart money is heading.  You need to understand what is truly driving the markets and how you can take advantage of these moves as – and before – they hit the mainstream.

You want to be on the lookout for prominent investing themes.

That’s how the long-term wealth can be found.

“Thematic investing is about capitalizing on future trends. Its forward-looking nature stands in clear contrast to the more widely used market capitalization approach [which] assumes that past winners will continue to win out… Why is thematic investing a good idea? In a rapidly changing business environment, the winners will be those that anticipate trends and take advantage of new opportunities,” once noted Towers Watson, “Thematic Investing”

Themes become so powerful because of the ripple effects they create, especially the world-changing ones that can change the lives of billions of people…

The green revolution is the perfect example.  Even the marijuana story is a game-changing theme. The fact that 80 million Baby Boomers are fueling growth in biotech

The artificial intelligence movement that may just change how we see the world.

And even the domestic oil boom that’s outpacing Saudi Arabia and Russia.  Even uranium is quickly re-emerging as a comeback story.

Simply uncover big themes and spot stocks that could get caught up in the wave.

Imagine if you had the opportunity to own domestic oil stocks before oil prices exploded to more than $140.  Imagine if you had the chance to own housing and lending stocks prior to the housing boom.   Imagine if you were one of the first to jump into the Dow Jones Industrials as the index finally bottomed out at 6,500.

If you can spot a hot theme early enough, you could make some great money.

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