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Ignore the boo hoo hoo media - Part 3

In the first two sections of this three part series I gave a brief overview of the smartist movement and its political and social ramifications, and then listed the sectors that stand to benefit from the smartist revolution; energy, internet technology, and commodities.

The third and final section will cover the various stocks and funds you should invest in to profit off the smartist web 2.0 movement.

Interestingly, Hillary Clinton John McCain won the New Hampshire primary, which came as a major blow to the ‘anti-smarty’, ‘anti-growth’ candidates Edwards, Obama and Huckabee. Although Clinton and McCain are on different aisles neither have elaborated any plans to pull out of Iraq or have insisted on some short of a timetable or exit plan. Should either Romney, McCain, or Clinton will the election (I predict Romney will win, BTW) the war will continue and energy and the stock prices of energy and commodity companies will continue to rise as they have since the war in Iraq began in 2003. In addition, these candidates enact pro-business incentives which will further globalization and entrepreneurship thus benefiting web 2.0 and other ’smarty’ companies.

The stock market took another blog this week with the S&P 500 and Dow Jones Industrial Average falling roughly 1.3%. Negative headlines still dominate the headlines regarding recession, slowdown in consumer spending, bad holiday sales numbers. And Obama and Hucklebee are for some godforsaken front runners?

Here are a list of some smarty web 2.0 new world order stocks and ETFs (Exchange traded funds) that are immune to bad news

1. Google Ticker: goog

Google is the quintessential internet company; the posterchild of the second dotcom boom which we are currently in. Its marketcap of $200 BILLION exceeds that of Yahoo, Ebay, and Amazon combined. Meanwhile its revenue and profits are surging from the boom in online advertising.

However, Google needs to make more aggressive efforts to dominate the web 2.0 marketplace such making an attempt to buyout facebook for over $30 billion dollars. Google’s social networking efforts such as Orkurt have largely been failures and buying out Facebook in the same manner that Google aquired Youtube in 2006 would make Google the leader in web 2.0.

Although Google trades at $630 a share I predict by the end of 2008 it will trade at over $800.

2. Apple Computers (ticker: AAPL)

Although Apple doesn’t have any web 2.0 properties is is still a major player in the second technology/internet boom. Its sales of Ipods and Computers continue to grow as PC users switch over and I don’t see this trend changing anytime soon. meanwhile, Dell, Microsoft, and Sony’s efforts to develop a so called ‘Ipod Killer’ have been unsuccessful.

3. Energy Select SPDR (ticker: XLE)

Since Summer of 2004 energy prices have been surging and show no sign of slowing. One way of profiting off this trend is by buying the Energy Select SPDR (XLE). This exchange-traded fund holds big-name companies like ExxonMobil, Chevron, and Valero. Regardless who wins the presidency the war in Iraq will continue, and there is the possibility of an invasion of Iran. This will only drive up energy prices further. In addition, the global economy is booming resulting in rising food an energy prices. Middle East, Asian, and South American economies are growing at a much faster rate than United States and European economies and growing such as oil to run their infrastructures.

4. iShares MSCI Brazil (ticker: EWZ)
iShares China 25 Index (ticker: FXI)
Claymore BRIC (ticker: EEB)

EWZ, FXI, and EEB are ETFs (exchange traded funds) that track foreign stocks.  EWZ consists of Brazilian stocks, FXI consists of Chinese stocks, and EEB is a combination of China, Brazil, and other so called ‘emerging markets’. All of these ETFs are up over sixty percent in the past year while the S&P 500 gained only four percent in 2007. The reason why these ETFs are outperforming US indexes is because the foreign economies are experiencing much more rapid growth than the United States economy. Investing in Brazil or China now is analogous to investing in the US in the early 90’s as there is still a lot of growth and upside potential left.

Like it or not, we’re in a globalist smartist economy and in spite of the constant complaining of Ron Paul supporters this trend isn’t going to reverse anytime soon, and emerging markets (ie. Brazil, India, China) as well as large cap multinationals (ie. Wallmart, HP, McDonalds, Cisco) are the main beneficiaries of this globalist revolution.

5. Mastercard (Ticker: MA)

Mastercard is arguably one of the best stocks to invest in because they are at the forefront of paymentism and spendism.  paymentism is the means that the smarties use to extract payments from people, such as creditcards and phone billing. Spendism is the growing trend of global consumerism. with the boom in emerging markets mastercard stands to benefit directly from increased consumer and business spending, and hence more creditcard transactions.

Mastercard stock is up over eighty percent this year and will only go higher in the years to come.

Unfortunately there are no actual publicly traded web 2.0 companies, nor are there any web 2.0 IPOs in the pipeline. The closest web 2.0 investment which I would recommend is Google and Baidu (ticker: BIDU), but they aren’t actual web 2.0 companies.

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