The markets today, Friday appear poised to open on a very positive note with most major indicators in North America and Europe in the green at time of writing. The safe havens of gold and silver are also pointed up at time of writing.
Under normal circumstances these indicators can change during the runup to the opening bells and at any time afterwards.
The optimism is being driven by stimulus hopes, the outlook for a COVID 19 vaccine and even somewhat by President Donald Trump’s recovery.
However, investors looking to escape from worrying about the impact of the Washington follies on at least part of their portfolios do have several options, amongst them investing in cyber security stocks.
Cyber security has several dimensions, including some caused by the COVID 19 pandemic, explains Paul De Sisto, Executive Vice President and Managing Director of M & R Capital in Summit, New Jersey. Many companies have been creating VPN networks. “This has accelerated during the past seven months when companies required employees to work from home,” he says
"Research is saying that we’re going to have 8.7% growth this year to $124 billion just in this one industry.” DeSisto says, He believes that in a world where even our kitchen appliances and cars are connected to the internet, cyber criminals have endless opportunities to cause chaos.
“Everything that is going on indicates that this business which had been growing rapidly is going to accelerate going forward,” he says.
Even within companies, attitudes towards cyber security are changing. “A lot of companies are going to what we call ‘zero trust’ cyber security,” he says, explaining that unlike traditional security, zero trust security does not consider those inside a network as more trustworthy than those outside the network.
Future columns will look at some individual cyber security stock picks but in the meantime, for those who prefer to invest in this area through exchange-traded funds, De Sisto says that ETFMG Prime Cyber Security ETF, iShares Cybersecurity and Tech, and First Trust Nasdaq Cybersecurity ETF may merit consideration.
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