I’ve said it once. I’ll say it again.
No one knows yet just how significant COVID-19 has been on the shift from a Physical to a Digital First economy. We have some rough estimates.
In Q2, ecommerce sales increased by 45%, year-over-year.
And ecommerce now accounts for about 20% of all consumer spending.
That represents an exponential amount of growth in just a decade.
I expect that it’s going to continue to grow at a breakneck pace in the years ahead.
But before I lay out the real opportunity ahead…
A warning: Your refrigerator might be trying to kill you.
Let me explain what that means.
I love fall. The leaves start to change.
We no longer break out into a sweat while walking to the car.
And it’s nice to have football back in our lives again.
But this year is so much different. In what is one of the most incredible shifts I’ve ever witnessed, businesses are moving to a Digital First world when it comes to succeeding.
COVID forced this transition. And it’s much bigger than people can quantify right now.
In fact, IBM says that COVID has accelerated the shift to ecommerce by FIVE YEARS.
Thanks to COVID-19, the pace of technology adoption and acceptance accelerated to light speed and then straight to ludicrous speed. This is incredible for the future of convenience.
But with this digital economy comes a new threat.
A world where you where your refrigerator can attack you.
A world where there is now a better than zero chance that your dishwasher will collaborate with your toaster, steal all your money, and send it to destinations unknown and undiscoverable.
The digital future is going to be as wonderful as advertised.
The Smart Home and the Smarter Office are going to be incredible.
Already we can change the setting of our thermostat, adjust the lighting, turn on the coffee remotely for our cell phones. Smart homes will be the standard.
You can’t even get a hardlined security system in your home anymore. Everything is digital, Smart, wireless, and completely reliant on The Cloud.
The incredible adoption of smart technology and digital commerce by Americans creates a new set of risks. And from those risks come an opportunity that doesn’t come around very often.
More Vulnerable Than Ever
Most people do not realize that every device attached to the digital world is one more point of vulnerability.
A hacker can come in through your digital light switch that allows us to adjust the lighting from halfway around the world.
That’s very convenient, but it also has opened you up to the possibility of disaster.
Once the hacker is in the house, he can jump to almost anywhere, including your laptop, your phone, to pretty much any connected device in your home.
In what can only be considered laughably ironic, connected security devices are among the most hacked Internet of things devices, according to one study I read this week.
What keeps safe in the real world increases our vulnerability in the Digital world.
With this level of vulnerability, the hacker can now access your financial data, your identity, and pretty much everything else they want to know.
Even worse, the hacker can now hide in one of your stems like your laptop or digitally connected watch or fitness device and hitch a ride to work with you in the morning.
I bet you didn’t think about this. Few people do.
Depending upon where you work and who you work for, that could be a disaster.
As your vulnerability could quickly become your company’s vulnerability.
There’s Only One Protection
George Orwell once warned that we sleep safely in our beds only because rough men stand ready in the night to visit violence on those who would harm us.
That’s heavy stuff.
In the digital future, we will sleep safely in our beds only because caffeine and pizza fueled software developers have stayed at the keyboard, pounding out the millions of lines of code needed to develop the cybersecurity software we’ll need to keep the hackers at bay.
I can’t stress this enough.
Cybersecurity is the most important business of the future. (And I know the best company for this booming trend).
And it’s not just the big businesses that need cybersecurity.
The smart home is going to have dozens of potential digital entry points. You will need a cybersecurity plan, and it will require frequent updating.
This isn’t like traditional warfare.
Every time he fails, he will develop a new plan of attack.
This new criminal is a lot smarter than the idiots who tried to hold up the local liquor store with a pellet gun.
Unlike the burglar who gets caught, the digital criminal will not be taken out of circulation by the local cops.
Chances are, he is not even on the same continent as you, but if your cybersecurity plan is not up to date, the hacker can get into your home right there in Anytown, U.S.A.
As frightening as all this sounds, there are some brilliantly bright silver linings. Those caffeine-fueled coders will be working for cybersecurity companies.
Many of those companies will be publicly traded.
Many more will become publicly traded over the next few years.
We can identify those cybersecurity companies that are positioned to make billions of dollars helping us protect our homes and our businesses.
Buy Cybersecurity Stocks
By all means, we should own all those companies that are creating the digital world. These companies are going to change our lives for the better.
We also need to invest in the companies that will help keep the digital world a safer place for us all.
If you are investing in technology and do not own cybersecurity stocks, you are leaving a lot of money on the table as a long-term investor.
But I’m making it easy for everyone.
Tomorrow, I’m unveiling my No. 1 stock pick for October. And it just so happens to be a rising star in the cybersecurity industry.
You’ve probably heard of them, and maybe even used them.
But as 70% of small businesses prepare to INCREASE cybersecurity spending in 2021, this is the company poised to benefit most. Wall Street says it has 70% upside over the next 12 months.
I think that the upside is around 114%.
I’ll be unveiling this pick tomorrow at 2 p.m.
If you want to attend, sign up for my Portfolio Maker at a 84% discount to membership price.
I hope to see you tomorrow,