Jeff Yastine wants to make one thing perfectly clear from the very beginning. He is not going to discuss politics!
He is going to discuss how we can earn money from cybersecurity. The spending that is going on in cybersecurity appears to be growing larger and larger by the day. We can also say that this article is about cybersecurity company stock prices.
In August of last year, Jeff Yastine began to write about this colossal trend. The exchange-traded fund or ETF that he played with the most during this time was the ETFMG Prime Cyber Security ETF. Its stock price reached $29 at that time.
This week, it began to trade above $34. This means that the stock price has realized a 19 percent gain in six months.
Jeff Yastine thinks that this means that the price is going to keep rising because there is going to be continuous cybersecurity spending from now until the year 2021 in the amount of $1 trillion.
At this time, the “Russian hackers” opportunity has a chance to get going at full speed.
Before we go on, we must learn something about Jeff Yastine’s background. He attended the University of Florida where he studied journalism. After he graduated, he became a television reporter where he discussed the markets like the Raleigh-Durham area of North Carolina. In 1993, he became the national correspondent and anchor of the Nightly Business Report in Miami. No other financial broadcast had as many viewers as his did at that time.
The Necessity for Cybersecurity
Remember that we are leaving politics out of this.
The story is causing federal, state and local governments to increase their spending dramatically, and it’s going on at the federal level as this article is being written. It’s not going to be long before the state and local governments get into the act too.
The federal government intends to devote $14.9 billion of the proposed 2019 U.S. government budget to the area of cybersecurity, and this will include all federal agencies. If this is what happens, it will mean that spending will have increased by 14 percent since 2017.
The leading information technology company CDW wrote in its FedTech blog, “The budget serves as a way for the White House to signal its priorities, and when it comes to IT, the message is clear: Cybersecurity is critical.”
Now is the time to repeat the fact that Jeff Yastine thinks spending is going to grow from this day forward.
During his days as a roving national correspondent, he learned how to recognize investment opportunities that would be good for the Nightly Business Report audience early in the game. These were companies that ended up being huge winners in the stock market. Some of these companies were Royal Caribbean, Carnival Corp., Mako Surgical, Lennar Corp., Petmed Express, SBA Communications and Intuitive Surgical.
As an example, the Cybersecurity Framework was created by the National Institute of Standards and Technology, and it highlighted technical standards that are meant to ensure that federal computer systems are secure.
Those who want to do business or conduct transactions with the federal government will have to subscribe to the new rules laid out in the Cybersecurity Framework whether they are contractors, associated with a state government or people who receive federal grants.
Are people on the state level affected by these new rules?
The National Association of State Chief Information Officers answered this question by giving the results of a survey that was taken by the association’s members. These members largely endorsed the statement “Security and risk management is the No. 1 priority” in that survey.
In actuality, the government doesn’t increase cybersecurity funding very often.
The Ponemon Institute has stated that several states are not spending very much at all on cybersecurity. Some of these companies haven’t increased their cybersecurity-IT spending by a single penny while others have only increased by 2 percent every year. At the same time, a majority of companies have added a significant amount of money to their cybersecurity budgets. Some had a 10 percent increase, but others have expanded even more in the past few years.
It looks as if companies are beginning to see that they have to make some changes, and they are starting with voting safeguards.
The Secure Elections Act
The Secure Elections Act was introduced in the Senate by both Republicans and Democrats last year. The bill was going to place $386 million toward a grant program that would impose cybersecurity guidelines on local election agencies.
When you look at this from a funding perspective, $386 million isn’t anything at all.
Another group of Democrats is asking for $1 billion to go towards cybersecurity that targets elections, but Jeff Yastine says that this doesn’t have a chance of passing.
What we are looking for as cybersecurity investors is something different because we welcome the trend. This trend that says that cybersecurity spending is going to increase is definitely going up.
Jeff Yastine has also had the pleasure of being able to interview the most important people in the area of economics, business and finance. These include Warren Buffet, one-time CEO of Microsoft Steve Ballmer, Frank Perdue of Perdue Chicken, the founder of Southwest Airlines Herb Kelleher, billionaire Wayne Huizenga, the founder of PIMCO Bill Gross and Michael Dell.
To learn more about Jeff Yastine and his investment advice visit Facebook, Twitter or check out his website: https://kennedyaccounts.com/
