Unique Finance Opportunities in the Tech Industry Currently

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If you're looking to change up your investment portfolio but aren't sure of your next move, take a look at growth options in the tech industry. The cycle of rapid obsolescence can be a bit daunting; you may be better off investing in ETFs or with established companies looking to create seed funds.

A Focus on Mobility

The world moves on smartphones and the people with smartphones are seldom still. New trends in the digital nomad lifestyle mean that the ability to easily get directions to a new location, find a better route or locate the ideal spot for lunch mean that directional app use will continue to expand. Putting money in a space technology fund or contributing to app developers that focus on travel is an ideal choice.

The World Runs on Apps

Those who create apps know that people looking for just the right product or experience are sticking to their phones. If you prefer a bigger screen but want in on the action, look for ways to invest in ETFs, or Exchange Traded Funds, that focus on apps. If possible, use a stock investing app that allows you to buy fractional shares and get at least a little money in this market.

Valuation Model Cautions

There are a lot of technology companies with tremendous potential that aren't yet turning a profit. Be prepared for some pretty intense fees when selecting your stock choices in technology. Also, be patient. The small tech company with a great idea can percolate along for quite a while before their value as a company really takes off and starts to make you money. However, many tech companies are a lot like a melting ice cube. The degrees of temperature change from 20 to 30 degrees Fahrenheit aren't terribly interesting to an ice cube, but they do matter.

Hardware Investments

Big changes in hardware may well be a thing of the past, but everybody still needs this crucial technology to keep their businesses going. Additionally, there are a lot of areas of hardware, such as virtual reality products, that offer a great deal of growth in commercial applications. To avoid the inherent volatility in tech but keep your finger on the pulse of this industry, you may want to take a look at the Vanguard Information Technology ETF. This fund offers the confidence of Vanguard, a name known to many investors, and the chance to also put some funds in tech to benefit from the boom.

Semiconductors

Like hardware, semiconductors aren't exactly sexy, but they are extremely necessary. The company constantly leading the way in capacity and efficiency may just be the best place to park your money. It's also a good idea to focus on the people in this industry. There are many in the tech sector who love starting, but not running, a business. If you can put money in that start-up structure, your chances for strong gains will be good.

Software Investing

When things get uncertain, folks focus on what they know. If you're worried about an upcoming recession, you as a business owner may slow your investments in new software. However, investors know that a slowdown is the ideal time to buy shares and stocks in the companies that provide software as a service, or SAAS. Because an economic downturn forces many former workers to become business owners, access to cloud computing means that the person who can start a business as a carpet installer can also use SAAS as a way to manage inventory, billing and accounts receivable.

One of the big worries about investing in software development is that this technology is extremely hard to patent. Because getting a patent takes so long, most software developers aren't able to sit back and wait for one program to get the protection they need; their development team has likely moved on. Look for developers that have expertise in a niche that is tech hungry instead.

Conclusion

Tech is inherently boom and bust. It can be hard to know what will take off and what will fizzle. If you're at a stage of life where making your money back out of a bust may take more time than you have, invest small in a strong fund. Even part of a few shares can make a decent addition to your portfolio.