The U.S., its allies and all the major corporations in those countries will spend huge sums of money on cybersecurity security in the coming months.
Look; you are smart and you know that market crashes create great opportunities for long-term purchases. So you probably already want the stock you can buy right now. And I have one simple suggestion to make your search easier: Buy cybersecurity stocks.
As with any other market, cybersecurity stocks have cracked down on the past few months. The ETFMG Prime Cyber Security ETF (NYSEARCA: HACK) dropped by almost 17% of its recent high, marking its second largest sale in the last five years - and its largest sale without the March 2020 Covid-19 risk.
But the basic truth is that cybersecurity shares should not be large. Instead, they should be great. The turmoil caused by the Russia-Ukraine war will create huge winds of online security in the coming months.
Impact of investment? Time to buy a dip in these stocks. In the near future, they should win more!
The Russia-Ukraine crisis has emphasized many things in the world - the need for independence, the importance of sanctions. And it became clear that Vladimir Putin was completely insane.
It is also emphasized that modern warfare is cyber warfare.
That is, war is not limited to the battlefields between people. It also fights digitally in the cloud and between computers. Indeed, the Russia-Ukraine conflict, so far, has been marked by endless cyber wars.
Catalyst for Cybersecurity Boom
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| Source:GRIZLER.COM |
At the time, Russia retaliated, hijacked Ukrainian cameras and seized certain Ukrainian offline websites.
At the same time, Nvidia (NASDAQ: NVDA) and Toyota (NYSE: TM) were both hacked last week at events allegedly unrelated to Eastern Europe. But let's be honest. How could they not? The US and Japan both imposed significant sanctions against Russia last week. And in their wake, the great American chip maker and Japan's largest car manufacturer were robbed anonymously.
The Cyber War has begun, it has just left here.
And with those sanctions already imposed on Russia, Putin wants to take revenge on the US and its allies. However, their lines are limited. Their options are:
The economy - but they can't hurt us that way because Russia's economy is down at sea compared to the US.
Military - but they can't hurt us that way because the Russian military is also small compared to the combined forces of the US and its allies.
Cyber - where they can hurt us because cyberwarfare is something that the Russians have made a name for themselves.
Therefore, Russia is likely to expand the conflict into a global cyberwarfare. And if so, the U.S., its allies and all the major corporations in those countries will spend huge sums of money on internet security in the coming months.
The impact of the investment here is to buy cybersecurity stocks today before this “gold rush” online.
Cybersecurity Stocks' Long-Term Expansion Opportunity
The opportunity available to cybersecurity stocks today is enhanced by the fact that these stocks will not only benefit from short-term spending. Instead, they will benefit from nearly a decade of growth for the entire industry.
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| Source:GRIZLER.COM |
According to Gartner, global spending on cybersecurity solutions has grown by ~ 9% per annum since 2014. While that may not sound appealing, consider three things:
Cybersecurity implementation makes up only 3.5% of the IT budget for 2021, a small portion, which means a huge area for budget expansion in the coming years.
The rise in the cost of Cybersecurity has steadily grown over the past few years, as the demand for cybersecurity solutions has become increasingly important. Expenditure increased by 5% in 2015. By 2021, they have grown by more than 12 percent and are expected to grow another 12% by 2022.
The importance of cybersecurity solutions will continue to increase as we enter a growing digital-focused society. And in the midst of this change, cybersecurity usage should also continue to grow rapidly.
For those reasons, our analysis suggests that we are in the first innings of a decade-long breakthrough in the cybersecurity industry.
We believe that spending will grow to about 6% of the IT budget by 2030. It will reach 8% of the IT budget by 2040, empowering what we see as an annual growth rate of 11% by all 2020 - and 8% growth by 2030.
