Jake Bernstein no bull investing_9

GETTING SERIOUS Strategies Beyond the Shoestring Budget 175 sively as are traditional mutual funds. These funds are de-signed primarily for the larger investor, and many do not accept less than $100,000 as an initial investment. Since their performance can be highly volatile and variable, I suggest that you invest in what is called a Fund of Funds. This is a hedge fund that invests your money in a variety of hedge funds in order to even out the peaks and valleys in performance. n Single stock futures. This area has already been discussed. 176 NO BULL INVESTING C H A P T E R E L E V E N STAYING AHEAD OF THE CURVE Emerging Opportunities What does the future have in store for investors? World econ-omies are on the threshold of record growth. With the record growth will come myriad investment opportunities, particularly in emerging markets such as Eastern Europe, the Pacific Rim, and the former Soviet states. In addition to new markets, new tech-nologies will offer investors some of the largest profit potentials since the early 1970s. Now is the time to plan for the future. Time passes all too quickly, and before we realize what has hap-pened, another decade has passed and with it many profitable opportunities. This chapter will alert you to developing trends in world economies that can be your ticket to profits, early re-tirement, and wealth. 177 178 NO BULL INVESTING WHAT’S AHEAD IN THE AREA OF TECHNOLOGICAL BREAKTHROUGHS? I have given you specific methods of investing and becoming financially independent. Recent studies support the finding that when economies make lows, there has also been a series of im-portant technological breakthroughs. Assuming that this is indeed the case, and looking ahead to the next period of economic growth, here are my thoughts on what some of the breakthroughs might be. In my estimation, all of these will be prime areas for long-term investors and offer potentially large profits. n Genetic engineering and biotechnology are likely to be important areas of innovation. These might prove to be the most prof-itable investment areas when the U.S. economy improves. n Routine space travel is likely to become a reality in the next 10 to 15 years. This opens an entirely new era of transportation and exploration. The possibilities are virtually boundless. n Computer technology is changing dramatically. Artificial intelli-gence, computers that learn from their mistakes, is grow-ing rapidly. In the coming years, progress will come in quantum leaps. Recent innovations include so-called neu-ral networks that can correct errors and actually learn. Computer technology will continue as a field of important innovation. Don’t be surprised to see a marriage of ge-netic engineering and computer technology, resulting in a machine that can outperform the human brain many times over. n Alternative energy. As conflict escalates in the Middle East, and as world needs for energy increase, the importance of STAYING AHEAD OF THE CURVE Emerging Opportunities 179 alternative energy development will increase. With this in-crease will come numerous investment possibilities. There are a number of new companies in this field that offer con-siderable long-term growth potential. n Communications technology is due for some revolutionary changes. Although advances in communications technology have been relatively stagnant for years, the coming economic boom may witness new developments using revolutionary methods and totally new technology. n Security and defense stocks and companies are likely to do well in the coming years. Terrorist attacks all over the world are likely to continue and, in fact, may escalate in the next few years. Companies involved in security and defense are attractive, particularly in the area of Internet security. It is important to keep in touch with areas of possibly new technology in order to capitalize on them with your investment dollars. Jay Forrester, the highly respected economist whose computer-generated forecasts have been very accurate, com-mented on innovations and the long-term economic cycle in an interview with Fortune magazine in 1978. His words are as true today as they were then. He was asked, “Do you have any idea of the technological basis for the next major economic upturn?” I am no more sure of the shape of the next technologi-cal wave than other people. I expect that energy will move toward renewable and more decentralized sources, not only because of the nature of new energy sources, but because of changes in our social system. I expect that declining worldwide political stability with increasing un-rest and sabotage will combine with the persuasiveness of ... - tailieumienphi.vn