Thinking of throwing a small percentage of my portfolio into a broad sector ETF (BUG, IHAK, CIBR, etc.). Given recents events, such as the SolarWinds and Microsoft hacks, this play seems like a no-brainer.
Governments will need to continue to ramp up spending to guard national interests and security. Cybersecurity has been elevated to a societal level risk. Corporations will also need to spend a significant amount of capital to guard trade secrets, technology, and customer trust.
COVID has also significantly increased digital work exposure with remote work. Additionally, corporations have greatly expanded their digital platforms during the pandemic, leaving their networks even more vulnerable.
The Cybersecurity market has outperformed the broader market in the past year (past performance not indicative of future results yada yada) and is expected to have compounding annual growth of 10% through 2027. I don’t see any situation in which cyberattack frequency decreases in the coming years, and believe we will be in a full blown digital Cold War with China soon (if we aren’t already).
I haven’t seen much discussion on this topic from the sub, so I’d love to hear thoughts , as well as any bear cases.
Edit: grammar
Submitted March 10, 2021 at 09:17AM by crediblepidgeon https://ift.tt/3epCytS
