As the representative of California’s 12th district — San Francisco — it’s no surprise that Speaker Pelosi is heavily invested in what Silicon Valley has to offer.
About 17% of Pelosi’s portfolio is made up of Apple shares, a bet that the ubiquitous tech/media/consumer electronics goliath will have more to offer in the future than simply a new version of the iPhone.
The company’s plays around augmented reality, virtual reality, the HomePod speaker, and the software inside the iPad should be exciting for investors.
They’ll provide consumers with some neat new gadgets to spend their money on, which should goose profits, while the technology powering these products will help position Apple for the next iterations of the internet, AI, and even laptop computers.
Apple’s stock has risen by 30% in the last year.
Microsoft shares account for over 14% of Pelosi’s stock portfolio.
Microsoft is often the odd man out when people discuss today’s tech titans, but the company has always thrived in the background, first by powering the computers of millions of businesses and individuals and then by becoming a leader in cloud computing.
Microsoft also owns LinkedIn, Skype, and Github, which alone boasts more than 65 million users.
Microsoft is facing stiff competition from Amazon in the cloud computing space, but some huge deals this year should more than make up for whatever ground has been lost to Spaceman Bezos.
The company will be supplying more than 120,000 augmented reality headsets to the U.S. Army, a contract that could be worth almost $22 billion over the next 10 years. Microsoft also recently announced the $19.7 billion purchase of Nuance Communications to bolster its healthcare offerings and become more of a player in an industry that is increasingly turning to tech for solutions.
Microsoft currently trades at a steep $310 per share. But if you’re on the fence about jumping in at a high price, you can build your own tech portfolio just by using digital nickels and dimes.
Nvidia Corporation (NVDA)
Some of Pelosi’s most recent transactions were purchases of shares in Nvidia.
Nvidia has its fingers in some very profitable pies. It first came to prominence by creating industry-leading graphics processing units for computers, which has tied the company’s fortunes to those of the rapidly growing computer gaming industry.
Nvidia is also known for its “system on a chip” units, powerful processors that major corporations like Amazon are already using in their data centers.
Nvidia’s next steps could be game-changers.
The company will be supplying the chip that drives the Nio ET7, the Chinese electric vehicle manufacturer’s first self-driving model, which is expected to be rolled out in early 2022.
And the unveiling of its first central processing unit, intended for high-end computing, could allow Nvidia to steal market share from dominant processor manufacturers like Intel and AMD.
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A creative alternative
Nancy Pelosi also has ties to the art world, having collaborated with none other than European iconoclast Banksy for a piece unveiled in early 2020, “Kinetic Art with a Shred of Decency.”
Fine art is an intriguing alternative to the stock market for investors.
Since 1995, contemporary art has outperformed the S&P 500 by a commanding 174%, according to the Citi Global Art Market chart.
There was a time when investing in fine art required thousands, if not millions of dollars. But retail and accredited investors can now buy shares of masterpieces by artists like Claude Monet, Andy Warhol, and even Banksy himself without having to outbid a roomful of multimillionaires.
Fine art as an investment
Stocks can be volatile, cryptos make big swings to either side, and even gold is not immune to the market’s ups and downs.
That’s why if you are looking for the ultimate hedge, it could be worthwhile to check out a real, but overlooked asset: fine art.
Contemporary artwork has outperformed the S&P 500 by a commanding 174% over the past 25 years, according to the Citi Global Art Market chart.
And it’s becoming a popular way to diversify because it’s a real physical asset with little correlation to the stock market.
On a scale of -1 to +1, with 0 representing no link at all, Citi found the correlation between contemporary art and the S&P 500 was just 0.12 during the past 25 years.
Earlier this year, Bank of America investment chief Michael Harnett singled out artwork as a sharp way to outperform over the next decade — due largely to the asset’s track record as an inflation hedge.
Investing in art by the likes of Banksy and Andy Warhol used to be an option only for the ultrarich. But with a new investing platform, you can invest in iconic artworks just like Jeff Bezos and Bill Gates do.