With extreme market volatility, short-term investors face significant challenges in today’s uncertain environment. Rebecca Walser, CEO of Walser Wealth Management, joined TheStreet to discuss why long-term investors should focus on the ‘new frontier’ technologies driving the fourth Industrial Revolution.
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REBECCA WALSER: If you’re a short term price action investor and you’re looking for short term gains, I would be very scared of this market. And unless you’re an expert trader, I would avoid it at all, caution because this is extreme volatility. The VIX in excess of 50. Extreme volatility anything above 40. Extreme volatility. So unless you’re a short termer I would if you’re not a short term or a void a avoid on the longer term end. We cannot ignore the fact that we are in the beginning stages still of the fourth Industrial Revolution.
Robotics, quantum computing, blockchain technology with the Cloud and then artificial intelligence, those are our four main areas that are what I would call the new frontier. And those are going to have long term multiple millionaire type effects. But you need to be able to buy in and hold. And I don’t know if you have to hold for 10 years or for 15 or for five, I’m not sure. But I do know it’s not a price action investment. It is a long term hold move so that it’s like buying into Facebook (META) in 2001. If it was available at that time and holding it to present day. It is a long term hold, and in the long term, in the next 20 years, it will produce a lot of additional growth for you. But you’re just going to have to be able to avoid the gyrations because it hasn’t been monetized yet. So it can get ugly as it goes through monetization.
I think that, you know, on the AI space, I know Nvidia (NVDA) is extremely expensive, but it is the global chip leader, and I don’t see it’s always possible, but we don’t see any priced alternative competitor that could take their position. So if you want to have the longest term, best kind of most well capitalized AI, I always think Nvidia is a good play, but it is expensive right now. And it’s expensive because it is the best. So again, you know, if we have more of a pullback and you see that hey it’s come down again. Buy into it, buy the dip and then be prepared to hold for a long time. But I do still love Nvidia. I do love the AI space. I do love robotics. I do love quantum. So those are the areas that I would say by, but not for short term improvement, because short term is going to be ugly.