This past week, Barron’s said, “Cybersecurity companies are among the safer stocks as China and the U.S. lock horns over trade” and that one way to sidestep the trade war is to focus on cybersecurity companies like Palo Alto Networks and CyberArk.
It seems like a reasonable strategy…
After all, according to research firm Gartner, global spending on the broader cybersecurity market exceeded $114 billion in 2018, which represented a 12.4% increase from 2017.
By the end of this year, the global cybersecurity market is expected to expand to $124 billion – another 8.7% increase.
And by 2022, the global cybersecurity market is projected to reach $170.4 billion, good for a staggering 37% increase.
But choosing a cybersecurity stock isn’t as easy as it seems.
For instance, CyberArk is up 67% year to date. That’s fantastic.
But Palo Alto Networks is up only 2.7% year to date. That’s atrocious.
To best capitalize on the cybersecurity spending spree, how do you choose between these two?
My vote: Buy neither of them.
Instead, play the First Trust Nasdaq Cybersecurity ETF (Nasdaq: CIBR).
Year to date, the First Trust Nasdaq Cybersecurity ETF is up 24.7%. Sure, that’s not as strong as CyberArk, but it’s far more appealing than Palo Alto Networks.
With this ETF, you get a wide variety of security-related companies, including Splunk, Okta, Palo Alto Networks, Symantec, Cisco, Akamai Technologies and even Raytheon.
In a way, the First Trust Nasdaq Cybersecurity ETF is a play that gives you exposure to defense, aerospace and cybersecurity – all wrapped up into one.
Action Plan: If you’ve been reading our Trade of the Day issues – then you’ve certainly seen notes and testimonials from War Room users about how much money they’ve been making on a daily basis.
If you’ve been considering joining us in The War Room, then click this link for more information!
About Bryan Bottarelli
Whether it was selling the Star Wars figures he collected as a little boy for 50 times their value or using the $125 he made cutting grass to buy a Michael Jordan rookie card that he later sold for $1,500, it was always clear that Bryan Bottarelli was a born trader – possessing the unique ability to identify opportunities and leverage his investments.
Graduating with a business degree from the highly rated Indiana University Kelley School of Business, Bryan got his first job out of college trading stock options on the floor of the Chicago Board Options Exchange (CBOE). There, he was mentored by one of the country’s top floor traders during the heart of the technology boom from 1999 to 2000 – trading in the crowded and lively Apple computer pit. Executing his trades in real time, Bryan learned to identify and implement some of his most powerful trading secrets… secrets that rarely find their way outside the CBOE to be used by individual traders.
Recognizing the true value of these methods, Bryan tapped into his entrepreneurial spirit and took a risk. He walked off the CBOE floor and launched his own independent trading research service called Bottarelli Research. From February 2006 to December 2018, Bryan gave his precise trading instructions to a small, elite group – most of whom have been followers ever since.
As a “play tactician,” Bryan uses his hands-on knowledge of floor trading to shape opportunities and chart formations into elegant, powerful and profitable recommendations. And by using the same hedging techniques taught by professional floor traders, Bryan is able to deliver his readers remarkable gain opportunities while strictly limiting their total risk.
Along the way, Bryan has developed a cumulative track record that could impress even the most successful hedge fund manager.
He now spends his days moderating one of the most elite trading research forums ever created: The War Room.
