Jeff Yastine Blog | Profit From Russian Hackers | Talkmarkets
Editor, Total Wealth Insider
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Jeff “JL” Yastine is the editor of Total Wealth Insider. He first joined Banyan Hill Publishing as editorial director in 2015, bringing with him more than two decades of experience as a stock market investor and financial journalist at the center of financial world ... more

Profit From Russian Hackers

Date: Tuesday, February 27, 2018 1:10 PM EDT

Russian Hackers Cybersecurity

Let’s get one thing out of the way — this article isn’t about politics.

It’s about making money from cybersecurity. The tsunami of spending in this sector just keeps getting bigger and bigger.

And so do the stock prices of many cybersecurity companies.

When I first started writing about this mega trend back in August last year, my favorite exchange-traded fund (ETF) to play this trend with — the ETFMG Prime Cyber Security ETF (NYSE: HACK) — was trading at $29.

Today it’s trading above $34 — a 19% gain in six months.

Profit From Russian Hackers

 

 

 

 

 

 

 

 

(Courtesy: TradingView.com)

And it’s only going higher from here, in my opinion — thanks in part to an estimated $1 trillion in new cybersecurity spending between now and 2021.

This is where the “Russian hackers” opportunity comes into play.

Cybersecurity Is Critical

Setting politics aside, the story’s pushing a huge pool of customers — federal, state and local governments — into upping their spending.

It’s already starting to happen at the federal level. It’s only a matter of time before local and state groups join in.

The proposed 2019 U.S. government budget devotes $14.9 billion to cybersecurity across all federal agencies — up 14% from 2017.

As CDW, a leading information technology (IT) company, notes in its FedTech blog: “The budget serves as a way for the White House to signal its priorities, and when it comes to IT, the message is clear: Cybersecurity is critical.”

I believe spending will become even larger from here.

For instance, the National Institute of Standards and Technology has created something called the Cybersecurity Framework — it establishes the technical standards to keep federal computer systems secure.

Basically, anyone doing business or transactions with the federal government — contractors, state governments and those receiving federal grants — will need to comply with new rules for keeping data safe.

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