A Constructive Guide To Investing In Technology (Actually Investing!)

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Invest in TechnologyOkay, before we give you a quick guide to investing in tech it is pretty important to understand that this doesn’t mean we’re going to teach you what to look out for when buying your next tablet. That isn’t what this is about. Nor are we going to tell you what tech you should be buying to give your startup company the best chance of thriving and not just surviving, which is another example of how the term ‘investing in tech’  is so often confused.

What we are going to give you is a guide on how to literally invest in technology, or to spell it out a little bit more, give you advice on how to invest your hard-earned cash in the technology sector. Yeah, it’s a finance blog. The reason we’re going to do this is there are a lot of misunderstandings swirling about what is right, wrong and what you should be looking out for. Enjoy.

Pull On The Reins A Tad

There is no denying that the advancements in technology have absolutely changed the world and in almost every respect imaginable. You’d have to be insane to do that. However, while it has become one of the key players when it comes to investments and returning big gains, it isn’t as foolproof as so many believe it is. The reason for this is, you aren’t investing in the technology itself, you are investing in the company that develops it. You are investing in their stocks and shares in the same way you would invest in other stocks and shares. It just seems more optimistic because it is tech.

Tech Can Be An Absolute Winner

The tech industry is growing the fastest right now and that tends to mean it is a good bet. Even those sub-sectors that have lagged behind may well blossom and blossom fast; you just have to know where to put your money. For example, gaming technology is on the rise with Fifa’s last outing selling 300,000 more units in its first week than Adele’s 25, the biggest album ever. Healthcare technology is another one, according to experienced healthcare investor Chris Pivik, who believes industries like Biotech will see a rise thanks to Trump’s administration lowering taxes and remaining silent on the debate about drug pricing. Retail Tech is another one, with multi-channel shopper tracking and mobile integration both on the rise. It is about doing your research and knowing what tech is going to be hot.

Be Wary of Certain Trends

Technology comes in waves and one of those at the moment is wearable technology. This has been a huge trend since the arrival of the Apple Watch, an arena that has since seen Garmin and Samsung produce great alternatives, and popular alternatives too. Another example are Spectacles which have been developed by Snap Inc. and is essentially a pair of glasses that record footage. The sports performance market has also gone kaboom recently. Looking at this, it would seem to invest in tech is a no-brainer. However, the thing with trends is, well, they tend to still be evolving markets. This is the case with wearables. As such, it would be wise not to leap into an investment with a company too heavily invested in just this area because, well, long-term, who knows?

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