5 Long-Term Trends You Should Be Invested In

Investor enthusiasm seems to be going through the roof and already-stretched valuations are going even higher. While a buoyant market is good news and a good earnings season is the perfect reason for the bulls to rule, it’s hard to over stress the need for caution.

Estimates for the third quarter have been corrected. Many companies continue to point to uncertainties for not providing annual guidance. The elections are around the corner. There’s a lot of waiting to happen this year that could have a significant impact on the stock market.

This seems to be a good time to take stock of our longer-term perspectives and invest for the future. So let’s take a look at some longer-term trends that you should be invested in-

Everything is moving to the cloud

This is the biggest trend and much has been written and said about this, so we are really already familiar with the fact that workloads are moving to the cloud, entertainment is moving to the cloud, education is moving to the cloud, e-commerce happens with its help, healthcare is increasingly moving to the cloud, our AI-powered future will happen from the cloud, and so on.

So there really isn’t anything much more to add. What it means from the investment angle is that there are many ways to play this and increase our exposure to the cloud. And depending on valuations (the whole space is overvalued to varying degrees), we can invest in infrastructure, software, hardware including chips and so on.

Stocks: While the FAANG stocks, Microsoft (MSFT - Free Report), (NVDA - Free Report), (AMD) are the most talked about, these stocks understandably have stretched valuations right now. A stock like Dropbox (DBX) is a way to tap growth at low valuations.

E-Commerce is here to stay

E-Commerce has grown in leaps and bounds over the last few years but there doesn’t seem to be any slowdown on the horizon. Instead, the categories served by e-commerce continue to expand. While online-first players like Amazon (AMZN - Free Report) hog the center stage, most traditional players have some kind of online presence today, which could be either their own website or a storefront on Facebook (FB - Free Report). There is tremendous growth waiting to happen in this space and even more so, if you consider the global opportunity. So you should definitely have some exposure here.

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