The U.S. spends billions every year on cybersecurity. And that spending is going to soar higher as companies work to protect our data from new and evolving threats daily.
My personal data has never been breached (knock on wood), but millions of Americans haven’t been as fortunate.
Data breaches and hacking are in the news now more than they have ever been.
And, as technology advances, hackers grow their skill sets to steal our information in new ways. It’s hard to keep up.
It’s why investors are pouring billions of dollars into the cybersecurity sector.
In this episode of The Bull & The Bear, I take a close look at this exciting market segment and share with you the best way to play the trends I see using a cybersecurity exchange-traded fund (ETF).
Cybersecurity Spending Spree
Cybersecurity is something that every person and business has to confront.
From securing personal information to safeguarding terabytes of company data, cybersecurity is front of mind in all aspects of our lives.
Just look at this chart:
In 2016, the U.S. spent around $32.3 billion on cybersecurity … from hardware to IT services and software.
That spending increased steadily until the COVID-19 pandemic forced businesses and individuals to rethink their spending.
Now that we appear past the pandemic — and with global cyberthreats increasing today — spending on cybersecurity is expected to reach more than $78 billion by 2026 — a 58% increase over pandemic-level spending.
What does all of this mean for you, the smart investor?
In this episode of The Bull & The Bear, I show you the trends and give you the best way to invest using cybersecurity ETFs going forward.
Note: Artificial intelligence is revolutionizing the cybersecurity industry, but another sector will be a bigger beneficiary of this groundbreaking AI technology. Our Chief Investment Strategist Adam O'Dell has found his No. 1 stock set to capitalize on the fastest-growing sector of AI's booming, $80 trillion industry. He'll have more information for you next week.
The Bull & The Bear
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Matt Clark, CMSA®
Research Analyst, Money & Markets
Matt Clark is the research analyst for Money & Markets. He is a certified Capital Markets & Securities Analyst with the Corporate Finance Institute and a contributor to Seeking Alpha. Prior to joining Money & Markets, he was a journalist and editor for 25 years, covering college sports, business and politics.