Home Logon FTA Investment Managers Blog Subscribe About Us Contact Us

Search by Ticker, Keyword or CUSIP       
Blog Home
Bob Carey
Chief Market Strategist
X •  LinkedIn

  In Search of the Next "Big Thing"
Posted Under: Sectors
Supporting Image for Blog Post


View from the Observation Deck

  1. The chart above shows the quarterly venture capital (VC) flows into Internet-related and biotechnology companies over the past decade. These two themes, along with traditional technology industries, have consistently been the most popular.
  2. Historically speaking, many retail investors have been interested in knowing what the so-called "smart money" is buying. Smart money is somewhat synonymous with institutional/high net worth investors.
  3. VC investing is speculative in nature. Capital is funneled into companies at various stages of development. A stake in a biotechnology firm, for example, could hinge on the success of a single new drug or medicine.
  4. While VC investors are looking to get in at or about the ground floor of an opportunity, ultimately, the financial reward is realized when (and if) the company they invest in goes public (IPO).
  5. Retail investors can participate and seek to prosper in these same themes by investing in established companies already listed on an exchange.
  6. From 12/31/01-12/31/11 (same span as in chart), the Dow Jones Internet Composite Index and NYSE Arca Biotechnology Index posted cumulative total returns of 135.8% and 88.1%, respectively. The S&P 500 returned 33.3%. (Past performance is no guarantee of future results.)
Posted on Thursday, February 23, 2012 @ 2:55 PM • Post Link Print this post Printer Friendly

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.
Search Posts
Market Commentary and Analysis
Market Commentary Video
Monthly Talking Points
Quarterly Newsletter
Market Observations
Subscribe To Receive Email

Financial Stocks Off to Good Start But Near-Term Hurdles Persist
Watching Investor Activity
It's "RISK-ON" For Investors So Far In 2012
Municipal Bonds Offer More Value Than Treasuries
Institutional Capital is Driving the Stock Market Higher
Don't Let One Bad Year Keep You From Owning Foreign Equities
Strategic Insight Into Valuations
Semiconductor sales can be a good barometer for the Tech sector
Large-Caps are not expensive on an historical basis
Globalization is Not Dead
Skip Navigation Links.
Search by Topic
Skip Navigation Links.

The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
Follow First Trust:  
First Trust Portfolios L.P.  Member SIPC and FINRA. (Form CRS)   •  First Trust Advisors L.P. (Form CRS)
Home |  Important Legal Information |  Privacy Policy |  California Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2024 All rights reserved.