Long Term Investment Ideas - The Traveling Day Trader

I often receive emails asking for ideas on long-term investments for the future. While I’m happy to share my thoughts, it’s important to remember that these are simply my opinions, based on my own research and perspective. Always do your own due diligence before investing any of your hard-earned money, as I am not a licensed investment adviser.

That being said, I see significant potential in a few areas that I believe will play a major role in shaping the future, particularly when it comes to growing a long-term portfolio. One sector I’m particularly interested in is artificial intelligence (AI). AI has already proven to be a groundbreaking technology, and I believe we’ve only scratched the surface of its potential. Its applications will continue to expand, impacting industries from healthcare to finance, and everything in between. As AI evolves and integrates further into our daily lives, the demand for AI-driven solutions will only increase, making it a promising area for future growth.

However, as with any investment, the key is to do thorough research. Look into specific companies, evaluate market trends, and understand the risks involved. Long-term success in investing comes from making informed decisions based on a solid foundation of knowledge, not just trends or speculation.

In conclusion, while I believe in the future of AI and other emerging technologies, the final decision always rests with you. Be thoughtful, be patient, and never invest more than you can afford to lose.

As of 2024, several emerging technologies are creating strong opportunities for future investment, especially in sectors that are set to see transformative growth over the next decade.

Artificial Intelligence for Scientific Discovery: AI is moving beyond traditional uses and is now being applied to revolutionize the scientific discovery process. From finding new materials to advancing our understanding of diseases, the application of AI in research is set to significantly accelerate innovation in healthcare, pharmaceuticals, and materials science. Companies that develop AI models or provide AI research services are becoming attractive targets for investment(World Economic Forum)(Nature).
Privacy-Enhancing Technologies: With increasing data privacy concerns, these technologies aim to balance the need for data sharing with the protection of personal privacy. Synthetic data and encryption solutions for global collaboration are set to transform sectors like healthcare, finance, and cybersecurity, making this a great area for future investment(World Economic Forum).
Reconfigurable Intelligent Surfaces (RIS): These surfaces can transform ordinary walls into intelligent components for wireless communications, improving energy efficiency and extending network coverage. This technology has significant potential in telecommunications, smart cities, and industrial applications, especially as demand for faster and more reliable networks grows(World Economic Forum).
Elastocaloric Cooling: With rising global temperatures and increasing demand for energy-efficient cooling solutions, elastocaloric materials—which absorb or release heat when stressed—offer a sustainable alternative to traditional cooling technologies. This could revolutionize refrigeration, air conditioning, and other cooling industries(World Economic Forum).
Genomics and Bioengineering for Organ Transplants: Advances in gene editing and bioengineering are making it possible to develop genetically engineered organs for transplants. This technology could drastically reduce wait times for patients needing organ transplants and is expected to reshape the healthcare sector(World Economic Forum).

These technologies not only represent exciting opportunities for future investors but also have the potential to address global challenges in healthcare, sustainability, and connectivity.

Investing in AI stocks has been a major trend, and as we head into 2024, several companies are positioned as strong contenders for long-term growth.

NVIDIA (NVDA): NVIDIA is the leading player in AI chips and graphics processing units (GPUs), essential for powering AI applications in everything from self-driving cars to data centers. In 2024, NVIDIA’s expansion into AI cloud services and specialized AI hardware keeps it at the forefront, making it a top AI stock to consider.
SoundHound AI (SOUN): SoundHound focuses on voice-based AI products, which are being adopted by industries like automotive and hospitality. The company’s impressive client list, including Hyundai and Square, demonstrates its growth potential, making it a standout in the voice AI space.
Mobileye (MBLY): As a leader in autonomous vehicle technology, Mobileye is utilizing AI to develop full-suite self-driving packages. Its advanced driver-assistance systems (ADAS) are already widely adopted, and the company’s AI-driven future growth potential is substantial.
Braze (BRZE): Braze offers an AI-enhanced customer engagement platform that helps brands manage real-time, cross-channel marketing campaigns. Its ability to integrate AI to optimize these marketing efforts positions it well for future growth, particularly as AI enhances the effectiveness of data-driven marketing.
Procept BioRobotics (PRCT): Specializing in medical robotics, this company is leveraging AI to transform healthcare, particularly in surgical robotics. With significant advances in AI integration, it’s poised for strong growth in the medical tech space.

Other notable stocks to consider are AeroVironment (AVAV), which focuses on AI-driven unmanned aerial vehicles, and Upstart Holdings (UPST), an AI-powered lending platform.

These stocks show great promise, thanks to their innovation and the growing adoption of AI across various industries(NerdWallet: Finance smarter)(InvestorPlace).

Investing in AI stocks has been a major trend, and as we head into 2024, several companies are positioned as strong contenders for long-term growth.

NVIDIA (NVDA): NVIDIA is the leading player in AI chips and graphics processing units (GPUs), essential for powering AI applications in everything from self-driving cars to data centers. In 2024, NVIDIA’s expansion into AI cloud services and specialized AI hardware keeps it at the forefront, making it a top AI stock to consider.
SoundHound AI (SOUN): SoundHound focuses on voice-based AI products, which are being adopted by industries like automotive and hospitality. The company’s impressive client list, including Hyundai and Square, demonstrates its growth potential, making it a standout in the voice AI space.
Mobileye (MBLY): As a leader in autonomous vehicle technology, Mobileye is utilizing AI to develop full-suite self-driving packages. Its advanced driver-assistance systems (ADAS) are already widely adopted, and the company’s AI-driven future growth potential is substantial.
Braze (BRZE): Braze offers an AI-enhanced customer engagement platform that helps brands manage real-time, cross-channel marketing campaigns. Its ability to integrate AI to optimize these marketing efforts positions it well for future growth, particularly as AI enhances the effectiveness of data-driven marketing.
Procept BioRobotics (PRCT): Specializing in medical robotics, this company is leveraging AI to transform healthcare, particularly in surgical robotics. With significant advances in AI integration, it’s poised for strong growth in the medical tech space.

Other notable stocks to consider are AeroVironment (AVAV), which focuses on AI-driven unmanned aerial vehicles, and Upstart Holdings (UPST), an AI-powered lending platform.

These stocks show great promise, thanks to their innovation and the growing adoption of AI across various industries(NerdWallet: Finance smarter)(InvestorPlace).

RSI (Relative Strength Index) is not a company itself but a technical analysis tool used to evaluate the momentum of stocks. However, if you’re looking for companies with strong RSI levels that might suggest long-term value for investors, it helps to focus on stocks with consistently moderate RSI levels. Stocks that maintain a balanced RSI, typically staying between 30 and 70, indicate steadier performance without extreme volatility.

Here are a few sectors and specific companies known for their long-term growth potential and often exhibit favorable RSI levels:

1. Technology Sector:

NVIDIA (NVDA): Given its dominance in AI and GPU technologies, NVIDIA continues to see long-term growth. While it can fluctuate between being overbought (RSI > 70), the pullbacks provide opportunities for investors to enter at lower levels.
Microsoft (MSFT): A tech giant with strong financials and a diversified portfolio, its RSI often hovers around healthy levels, suggesting consistent momentum without extreme overbought or oversold conditions.
Alphabet (GOOGL): Parent company of Google, consistently innovating in AI, cloud computing, and advertising. It’s a strong performer with a balanced RSI pattern over time.

2. Healthcare/Biotech:

Johnson & Johnson (JNJ): Known for steady earnings and a long history of dividend payments, J&J offers long-term value, and its RSI generally reflects consistent buying and selling pressure.
AbbVie (ABBV): With strong revenue from its pharmaceutical products, AbbVie presents a favorable stock for long-term investors, often showing RSI levels that suggest reasonable entry points without extreme volatility.

3. Consumer Goods:

Procter & Gamble (PG): A staple in consumer goods, P&G tends to exhibit RSI levels that reflect stable growth, making it a good pick for long-term investors looking for consistent returns.
PepsiCo (PEP): With its strong market share in beverages and snacks, PepsiCo’s stock often trades within a favorable RSI range, providing potential for steady long-term gains.

4. Financials:

Visa (V): As a global leader in payment technologies, Visa’s stock often maintains moderate RSI levels, reflecting its status as a steady, long-term investment.
JPMorgan Chase (JPM): One of the largest banks in the U.S., JPMorgan offers long-term stability, and its RSI levels usually suggest steady performance, offering potential entry points during market corrections.

5. Energy:

ExxonMobil (XOM): With a focus on energy production and sustainable alternatives, Exxon’s stock has regained momentum in recent years, with RSI levels that show good opportunities for long-term investors when the stock dips into oversold territory.

RSI and Long-Term Strategy:

For long-term investors, focusing on stocks with consistent RSI patterns—neither perpetually overbought nor deeply oversold—helps identify stable, enduring investments. A stock that frequently hovers around 50 on the RSI scale often signals healthy price movements, meaning it’s not undergoing extreme volatility, making it suitable for a long-term hold.

To make more informed decisions, you can combine RSI with other indicators like moving averages or fundamental analysis to better assess the timing of your entry or exit in these stocks.

Reconfigurable Intelligent Surfaces (RIS) represent a cutting-edge technology that could revolutionize wireless communication systems, especially as we move towards 6G networks. RIS can dynamically control electromagnetic waves to enhance signal strength and coverage, which opens significant opportunities for long-term investments.

Here are some sectors and companies involved in the development of RIS technology that are worth considering for long-term investments:

1. Telecommunications and Networking Companies:

RIS technology is expected to play a critical role in next-generation 6G networks. Companies that invest in telecommunications infrastructure, particularly in 5G and beyond, are well-positioned to benefit.

Ericsson (ERIC): A leader in networking and telecommunications, Ericsson is actively researching and investing in future technologies like RIS. They’re heavily involved in 5G infrastructure and will likely play a major role in 6G innovations, making them a strong long-term investment.
Nokia (NOK): Nokia has been investing in 6G research and partnerships, positioning itself for future networks. Nokia’s involvement in RIS development could help it regain momentum in the wireless infrastructure market.
Qualcomm (QCOM): Known for its innovations in 5G and wireless communications, Qualcomm is involved in developing technologies that could benefit from RIS advancements. They’re also working on millimeter-wave technology and AI, which will play a crucial role in RIS.

2. Semiconductor and Chip Companies:

RIS will require advanced hardware, such as chips and sensors, to be effective. Therefore, semiconductor companies could benefit significantly from the expansion of RIS technology.

NVIDIA (NVDA): Known for GPUs and AI computing, NVIDIA’s hardware could be pivotal in processing the data required for RIS systems, especially for real-time adjustments in signal propagation.
Advanced Micro Devices (AMD): Like NVIDIA, AMD is a major player in high-performance computing. Their focus on AI and 5G technology makes them a potential long-term investment as RIS becomes more widespread.
Broadcom (AVGO): Broadcom produces critical components for networking and communications. They’re also involved in the 5G supply chain, and RIS could be a natural extension of their technology offerings in the 6G era.

3. Wireless Technology Innovators:

Smaller companies focused on wireless communications and emerging technologies could experience significant growth as RIS technology gains traction.

Analog Devices (ADI): Analog Devices specializes in high-performance signal processing and power management technologies, which could be essential for RIS applications.
Marvell Technology (MRVL): Marvell develops semiconductors for data infrastructure, including chips used in 5G networks. Their innovations in networking and cloud computing make them a strong candidate for long-term RIS opportunities.

4. RIS-Specific Research and Startups:

There are also companies and startups specifically focused on RIS research and development. These companies are likely to be acquired or partnered with by larger firms as the technology becomes more critical.

Greenerwave: A French startup that develops software and hardware to enable RIS for wireless communication and radar applications. Investing in startups like Greenerwave offers exposure to early-stage innovations in the RIS space.
Metawave: A California-based startup working on intelligent metamaterials, which are key components in RIS. They focus on developing systems for automotive and wireless communication, both of which could benefit from RIS.

5. Defense and Aerospace Companies:

RIS has applications beyond commercial telecommunications, particularly in defense and aerospace for improving radar and signal propagation.

Lockheed Martin (LMT): Defense companies like Lockheed Martin are always at the forefront of next-gen technologies. RIS could be critical in enhancing stealth capabilities and improving communications for military applications.
Raytheon Technologies (RTX): Another major player in aerospace and defense, Raytheon is known for its radar systems and could benefit from RIS to improve signal efficiency and radar accuracy.

Long-Term Investment Strategy:

Given the rapid advancements in wireless communications and the potential integration of RIS into 6G networks, telecommunications, semiconductors, and RIS startups are among the best areas for long-term investment. Companies that are investing heavily in 5G and 6G infrastructure, chipsets, and metamaterials are likely to benefit the most as RIS technology matures over the next decade.

Staying updated on RIS-related partnerships, government contracts (especially for defense), and ongoing research in this space will also provide insights into which companies are leading the charge in RIS innovations.