Megatrends From 2016 Still Megatrendy

In December 2015, I distributed to our readers what I considered the Top 10 Megatrends to trade from in 2016 and beyond.

Here they are in the original form:

Climate Change: Solar Energy, Raw Materials at risk, Electric Cars, China as a possible leader in Alternative Energy Technology.

Geopolitical Turmoil: Emerging Markets, Raw Materials at risk (including oil), Defense companies and Cyber Security (At Risk-Big Banks), Impact on Travel-Hotels, Airlines and Cruise Lines

Domestic Violence: Gun Stocks, Companies that make Security Systems

Social Media: Facebook, Twitter, Linked In

Online Shopping Versus Brick and Mortar: Began in 2015 and should continue that trend

Growing Baby Boomers: Necessary consumables versus luxury goods

Video Gaming: Already growing, especially with the Millennials, expect that to continue to burgeon

Smart TVs Versus Cable Providers: Continued switch to subscription based entertainment such as Amazon and Netflix versus DirecTV Dish Cable, etc.

3D Printing: Still in infancy but with an inevitable growth trajectory

Alternative Currency: Bitcoins and/or some other internet based barter systems.

One and half years later. Some of those trends and corresponding individual stocks, i.e. Social media-Facebook, Video Gaming-Nvidia, Online shopping-Amazon, Smart TVs-Netflix to name a few, paid BIG!

Other trends-not so much.

In the photo, the woman with the headset tunes into the fortune teller via light and sound waves. What is she transmitting to us now?

A quick note first about yesterday’s topic-gold and gold miners. Last night I wrote, “From a technical standpoint, gold miners tend to lead before gold makes a move higher.”

Today, GDX rose nearly 1% while GLD rose only by .12%. A trend worth noting? Indeed, if GDX continues its run and especially if it goes parabolic.

In fact, I am eager to amend the megatrends listed in 2017 by adding gold and the miners as ETFs to watch. Particularly sensitive to geopolitical turmoil, both are hedges should alternative currencies continue their tear, hence threatening the future of the big banks.