Find out how Myer’s struggle to stay afloat, the far-reaching impact of self-driving cars, and Buffett hating Bitcoin could affect you and your investments. (Reading time 3:28 mins)

This information does not take into account your personal objectives, financial situation or needs. You should consider if the relevant investment is appropriate having regard to your own objectives, financial situation and needs.

 

1. Myer is bursting at the seams

The future is looking quite murky for Myer after a disappointing holiday season, leadership shake ups, and sales figures coming in well under expectations.

The recently fired former CEO tried implementing a new strategy for growth, but it fell flat and was ultimately unsuccessful in improving the company’s bottom line or fending off competitors.

What does this mean if you’re invested in Myer?

We think Myer shareholders could be in for a very tough time.

Management appears to be in real turmoil with the CEO departing and its largest shareholder launching a scathing attack on Myer’s chairman.

We can’t see how the company can quickly turn around its fortunes, especially when faced with increasing pressures from competitors – particularly online competitors.

What does this mean if you’ve invested money with AtlasTrend?

AtlasTrend’s managed funds are not invested in Myer, or any Australian traditional retailers. Our investments in the industry are predominantly online retailers in the AtlasTrend Online Shopping Spree Fund.

What’s happening to Myer has already happened to many other traditional retailers in other parts of the world.

They’re faced with large cash spend commitments, whether it is through property leases or borrowings, and are therefore finding it increasingly difficult to invest in their businesses to compete with online retailers.

 

 2. The far-reaching effects of self-driving cars

Bloomberg published an excellent article this week – listing all the ways self-driving cars are set to transform industries well beyond the automotive sector.  

It’s an interesting, insightful look into the impact of self-driving cars on businesses, cities and our lives. So it got us thinking about what it could all mean from an investor standpoint.

What does this mean if you’re interested in investing in the stock market?

Since some expert estimates have indicated self-driving cars will be “everywhere” in less than a decade, stock market investors should be prepared for their arrival and how it might impact their investments.

Our picks for the top 3 industries that are likely to be most disrupted are:

  1. Car manufacturers: the leaders in autonomous vehicle technology are likely to be the winners (think Daimler and Tesla) while more traditional car manufacturers are likely to lose out with declining car ownership.
  2. Insurers: car insurance rates may drop dramatically since human error is removed from the driving equation.
  3. Real estate companies: fleets of self-driving cars in populated cities may significantly reduce the need for car parks, auto-retailers and may impact how people use physical real estate space.

What does this mean if you’ve invested money with AtlasTrend?

We believe self-driving cars will become a reality sooner rather than later.

When you consider the fast-growing electric vehicle trend, adding self-driving cars to the mix has the potential to create a significant investment megatrend.

Our investment team has been spending a lot of time researching such investment opportunities, and we’ll continue to provide regular updates on this exciting trend.

 

 3. Buffett & Munger hate on Bitcoin

Warren Buffett and Charlie Munger are two brilliant minds, billionaires and renowned investors that have been quite local about their stance on Bitcoin and cryptocurrencies more broadly.

Most recently, Munger said: “I never considered for one second having anything to do with it. I detested it the moment it was raised. It’s just disgusting. Bitcoin is noxious poison.”

What does this mean if you’re invested in Bitcoin?

Buffett and Munger openly acknowledge they don’t understand cryptocurrencies and Bitcoin. It’s precisely why they dislike Bitcoin as an investment.

Buffett and Munger have a simple rule: don’t invest in anything you don’t properly understand. This rule has made them and their shareholders billions of dollars over many decades.

If two of the smartest investors don’t understand Bitcoin, do any investors out there truly grasp what’s happening in cryptocurrency markets?

What does this mean if you’ve invested money with AtlasTrend?

AtlasTrend’s managed funds do not invest in cryptocurrencies.

We conduct a lot of fundamental research before investing in a company’s shares. A key part of this involves understanding how a company makes money, and how its products/services work.

Like Buffett and Munger, if we can’t understand what is going on with a company’s finances or products, we simply don’t invest in it.

From our experience, the best investments are usually those that are relatable and easy to understand.

  

For more about the types of managed funds AtlasTrend provides, click hereSign up for full details on what the Trends invest in, and access actionable investing insights.

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About Kent Kwan

Kent Kwan is a Co-Founder of AtlasTrend, an online investment platform that makes it easy for anyone to learn and invest in trends transforming our world. Kent has over 15 years experience in financial markets including as Chief Investment Officer at Arowana International Limited, and roles at JP Morgan and Macquarie.