CodyWillard

When, how and why unmanned aerial vehicles (aka, Drones) are going mainstream.

Scutify.com Investor's Deep Thought of the Day. Imagine the medical, health and training applications from having non-invasive wearable sensors on your body to track your blood, hormone, or whatever other levels you need tracked. It's not even that far out there.

The Wearable Revolution isn't about Fitbit tracking how far your walk and how many calories you burn. And it's not about a Smartwatch that tracks your heartbeart while letting you read your emails or talk on the phone.

It's about health monitors. It's about having a video recorder on you at all times if you so desire (and millions of people will desire such record-ability). It's about keeping track of your kids and your pets (and your spouse, etc). It's about logistics and data and streamlining efficiencies in your workforce. It's about safety and accountability.

Wearables and what people do with them will change society. Invasion of privacy is going to be an ever bigger issue with wearables and drones and robots and their ability to track and keep data, video and other private information.

Some of the best plays on the future of wearables include:

1. Google. With Android and Google's ubiquitous cloud presence in all of our lives via Gmail, YouTube, Search, etc, not to mention Google Glass itself, Google's clearly got its eyes on the wearables prize(s).

2. Apple. Most every major wearable and the apps that run it will interaction with your iOS and/or Mac device via apps and sites. Apple's iOS long ago hit critical mass and it won't be losing it anytime soon.

3. Oracle. All those apps and all that data and information will be increasingly complex to manage. Oracle's database is the de facto standard and best of for handling that kind of mess.

4. Sandisk. There will always be demand for local storage and the amount of storage demanded by these apps, smartphones, and wearables of the future will be huge. Huger than that. Ginormous.

5. Intel/Arm/Micron/etc. All those wearables will themselves require lots of chips, lots of processing power, lots of memory, etc.

The uses/marketplace/applications for wearables don't even exist yet. The fitbit and the Nike wearables you see around today are like 8-track players before anybody had even invented the Walkman. People like to live better, longer and easier lives. That's what the future of wearables promises to deliver. Get on board now before you look back in eight years and wonder why you didn't see it coming like the people on my Cody Cam didn't see the online video revolution coming eight years ago.

When you're looking at long-term, revolutionary-type investments, you're obviously trying to find markets and companies that are growing quickly with huge potential in front of them. There are two types of growth, secular and cyclical. Cyclical growth happens when a company and/or a market see upside along with the broader economic cycle. Energy companies, metals markets, chemicals, housing and many commodities fall into this type of category. That is, when times are good, so too will their businesses likely be good and when times are bad, all the boats sink together.

Secular growth, on the other hand, happens when a nascent industry is taking off, about to grow into revolutionary proportions as it displaces old business models and technologies. Two factors contribute to secularly growing industries -- they create entirely new demand and they steal demand from other industries. Netflix, YouTube and other web/app video sites, for example, are contributing to more people consuming more video than ever before. But people are also spending some of the time that they used to spend watching network and cable television on Netflix and YouTube. That's a double shot of growth for the web/app video industry.

Likewise, wearables, robots and drones are going to be secularly-growing, eventually reaching new revolutionary proportions, creating new end-markets, consumption habits and prosperity for our economy as well as our society at large.

How many wearable computing devices do you own right now? None, is the most likely answer. How many times a day do you interact with a drone right now? Unless you're in Afganistan, Syria or somewhere like that being targeted by the RepublicanDemocrat Regime or a hobbyist with a quadcopter camera, your answer is most likely, never.

And robots? Factories are filled with robots, but our day to day consumer doesn't interact with robots much just yet.

Meanwhile, over the next five to ten years, billions of new wearable gadgets in hundreds of new form factors with millions of new applications will be sold to consumers and enterprises around the world. Drones -- from Google's and other's driverless cars to pilotless aircraft to quadcopter package delivery -- will be everywhere in our daily lives within the next decade too. Facebook and Google will be using Drones to deliver Internet access. Robots, which, if they're fully mobile, would also be known as drones, are going to sell us routine tickets, provide safety checks and who knows what else over the next decade.

The wearable/drone/robot revolutions get even better for investors who are willing to do their homework because each and every one of those wearables, drones and robots needs ever more computing power and sensors.

The first iteration of the iPhones and Android smartphones had about three sensors each, including accelerometer, proximity and light sensors. Today's smartphones and tablets have ten to fifteen sensors each, including all those three already mentioned along with 3- or 6-axis gyroscopes, fingerprint, gesture and even heart-rate sensors.

Each wearable, drone and robot will likewise have ten times or more as many sensors as these early versions of wearables, drones and robots that we see coming out today.

So if you can find a market that will grow from almost nothing currently to selling billions of units a year in the next decade, you're probably onto some good investments. But if you can find component plays in that industry that will sell ten or twenty or a hundred components into each one of those units, you're probably onto the kind of investment that Intel was when PCs were nascent and before it went up 1000-fold from 1970s to the 1990s.

I'm building a portfolio of these kinds of stocks right now, knowing that I'm probably still a year or two ahead of the demand curve that's building for these companies right now. So far I've started with toe-hold positions in Invensense and JDSU, both of which have got sen

I talk about the Drone Revolution and the best ways to invest in it with drone entrepreneur, Terry Holland. Plus how to play with drones and other apps that we'll see hitting the markets in the next year or two.

Each and every investor and trader is different for a million different reasons.

Some people love to take big risks in hopes of big rewards. Others are strongly risk-averse and cringe at the thought of any, even temporary, material losses from trading and investing.

Some people are born into big money and have traded stocks before they're even out of high school. Some people are born into even bigger money and have a trust fund with millions of dollars already invested in stocks in your name. Most investors and traders, on the other hand, have to work for at least half their lifetime before ever having enough savings to consider buying a stock.

Some of you are in careers that have huge upside and you're already making more cash flow than you can spend each month. Meanwhile, some of you are in a career where you know exactly how much you'll be making for most of the rest of your life and its not much more than you make right now.

Each of these plus a million other factors go into you making decisions about how and where and when and with whom you're investing your money.

Last week, I talked about how I learned the importance of listing your portfolio positions in order of weighting and giving each of the positions a rating between 1 and 10. That's a crucial and easy to use tool to help you maintain the balance in your portfolio, but it does little by way of helping you make sure you're headed towards your long-term investing and trading goals.

Consider the bigger picture and your own long-term goals and reasons for investing and trading before you ever move a dime.

Here are a few other questions each and every investor should ask themselves.

Want to be a good Revolution Investor? It won't ever be as easy as just buying some great stocks and forgetting about them. You have to continually stay on top of each of your positions, of your portfolio itself as well as continually making sure that you're on track for your longer-term goals while keeping your risk profile appropriate for you too. Like I said, it won't be easy. But with a good playbook, consistent diligence and appropriate money allocation, you can do it.

For now, GOOG is sort of perceived as a "safe" stock in tech, and that can be good for the short-term but will hurt on the downside hit whenever it comes next as the people who thought it was "safe" then decide it's not after they've lose money on it. The game/cycle/mentality of trading never changes, it's just easier to look out five or ten years and see that $GOOG and Android will likely be much bigger and more valuable and making more money then than they are today and that means the stock will likely be higher too.

Yahoo!7 launches new finance app for iOS and Overhauled Yahoo Mail App for Android - I get so frustrated with Yahoo finance on my iPhone because they changed to a mobile layout that doesn't include balance sheet and other info I used to use their site for. Then I get excited when I realize that their mistakes give Scutify an even bigger opportunity. Meanwhile, Android and its seamless integration with all your Google accounts and Gmail make even Apple's AAPL latest iOS and apps seem antiquated. Yahoo is not an app company. I am considering shorting that stock soon.

Best review EVER on the Scutify iPhone app: "This app will become a must have for all investors/traders around the world. But it's much more than finance. Cody Willard said recently on Scutify that, 'you gotta start somewhere', and it struck a chord with me. How will anything change toward fairness if we don't get started. Scutify is that venue. There's a moral and ethical foundation to the truth, as well as ideas for making our world a better place for all." Amen.

Speaking of telling you the truth: SEC warns investors about over-the-counter marijuana stocks - "The SEC’s warning trails a similar decree made by MarketWatch’s own Cody Willard months ago. Willard has warned against trading OTC stocks in general, citing marijuana stocks and e-cigarette companies as particularly shady." I've been tellin' ya.

Biden returns to Europe in wake of Ukraine crisis and Biden’s Son Joins Board of Gas Company Linked to Ousted Ukrainian President - The facts: Ukraine Energy Co has lots of "legal rights" to lots of energy fields in Ukraine. If Russia takes over Ukraine, those "legal rights" will be gone forever. Best way to save your company? Weeks after Joe Biden visits, you appoint his son to your Ukraine Oil Co, and now the US will say its got US interests in Ukraine. Much more "aid" from US taxpayers to support Biden's Baby Boy's Board company and the regime now in power in Ukraine and perhaps a full blown war in Ukraine is the most likely outcome with this development.

Jim Cramer had apparently become a fan of mine enough that when the Editor in Chief, the late David Morrow, told him that I wanted to launch a hedge fund, Jim reached out to me and invited me to his offices in NYC to discuss it. He gave me the names and numbers of various contacts of his at Bear Stearns, Goldman and other firms that provide what are called "prime brokerage services", and other resources for hedge funds and told me I could use his name when I called them so I'd be sure they'd take the call.

I'd long ago learned the importance of reaching out to anybody who can help you when you're starting a new venture or adventure, and Doug Kass was another Wall Street big shot who not only met with me at his place in Florida, but also introduced me to several "soft-dollar brokers," who help fund your hedge fund start up costs in exchange for doing a corresponding amount of trading at their firm over time.

Dr. Dre is awesome but neither he nor Maria Carey's ex, Iovine, are not techies and Apple needs to keep innovating with tech, not celebrity marketers on their payroll.

This acquisition of Beats at this time and place for this kind of money is indeed yet another indicator that we are in my App Revolution Stock Market Bubble, capitalized because it just keeps getting bigger.

I sure wish Apple were spending that money and time on much-needed improved operating systems and mind-blowing features for their gadgets instead of buying a fashion accessory tied to music app company instead.

That said, Apple remains one of my biggest positions since I'd recently built it back up a few months ago and I'm holding that position steady because they still have a lot more going right and are cheap enough that I still like the risk/reward for the next couple years at least in the stock.

Charts Say Stock Swoon May Have Farther to Go - I don't believe that the universe/capitalism will reward the drawing of straight lines on historical price patterns for a stock. Thusly, I do NOT do nor do I believe you can sustainably profit from any type of "Technical Analysis". Art, maybe, but not profits.

But one of the most insightful options traders and options data trackers you'll ever find, Jon Smart, made some great points: "Fundamental traders tend to run into the same problem, too many think a stock is under/over valued and it keeps going against what the majority believes should be happening... The sentiment on $NFLX and $TSLA in late 2012 was that they were way overvalued at $90 and $40 respectively."

Alibaba IPO search on Google News - 90,000 headlines in the last week about this topic. I have been patiently waiting to short Yahoo once Alibaba finally comes public. Talk about hype! How LONG have we been hearing about the Alibaba IPO and how Yahoo owns a chunk of it. Any upside for Yahoo from an Alibaba IPO has long since been priced into the stock. I expect $YHOO will make a great short side trade into the Alibaba IPO and there soon after for the near-term. Still gotta wait til closer to Labor Day though. Sigh.

How high can the drone revolution fly? - My latest Revolution Investing newsletter. "You see, the biggest problem that all these predictions and models for the Drone Revolution have is that they can't account for the brilliant, innovative and ever new uses that unmanned aircraft and smaller remotely- or automatically-controlled devices will be used for in the future." See also Monday's blog post: Profit from the coming drone revolution.

It ain't about government drone bombing and invasion of privacy. Some of the applications for drone/unmanned aircraft technology that I’m highlighting in the book include:

1. Farming/Agriculture/Environment — This is likely the largest market for drones, at least in the near-term

2. Defense – War – Military

3. Local Police Enforcement – State Government

4. Drones That are Robots

5. Medical Applications — Mind/thought controlled drones?

6. Natural Resource Mining-Business – Shipping

7. The Future of the Internet in Remote Locations – Communications

8. Weather Forecasting – Scientific Data

9. Criminal Usage