Hi Kapitallist,

Gordon Gekko, the main character from the 80’s classic movie Wall Street, famously said that the stock market is a place where money is “transferred from one perception to another.” At the end of the day, the stock market is just a big laboratory of investing ideas. If your perception of the trends around you is accurate, you’re likely to be a successful investor.

But how do you find investing ideas? To help you get started, we’ve compiled about a hundred lists of stocks and funds that have exposure to the trends that are shaping the future. These lists can be accessed in the List Menu on the top left of your Kapitall Playground.

In today’s newsletter, we’re highlighting some of the top performing trends over the last year. As always, you’ll have to log into your Kapitall account to access these lists…

#1 Trend: China as an Economic Superpower
Average 1-year return of the list: 146%
Fourteen companies included in the list

Many experts believe that China will be the world’s next economic giant, and investors have taken notice. Our list of Chinese stocks have had an average return of 146% over the last year, beating Brazil (68% gain), Japan (34% gain) and Germany (46% gain).

#2 Trend: Baby Boomers as an Economic Force
Average 1-year return of the list: 104%
Seventeen companies included in the list

Will consumer companies that target older households see more growth than those focusing on the broader or younger population? To monitor this idea, JP Morgan constructed the Aging Population Index to track a basket of stocks that have meaningful exposure to the Baby Boomers of North America. It’s interesting to note that this index has outperformed the S&P 500 Index in six of the past eight years in both absolute and risk-adjusted terms.

#3 Trend: Solar Energy
Average 1-year return of the list: 83%
Eleven companies included in the list

Solar and wind power currently supply less than 2% of the world’s energy needs, but advances in technology are about to expand with the introduction of nano-engineered materials for solar panels, making them far more efficient, lighter and easier to install. Investors are clearly excited by developments in this space…

#4 Trend: Online Security
Average 1-year return of the list: 54%
Four companies included in the list

Cyber warfare may have sounded like science fiction a few years ago, but it’s becoming increasingly common these days. The Pentagon reported some 360 million attempts to break into its networks last year, up from just 6 million in 2006. And don’t forget the recent hacker attack on Google, originating out of China. Companies know that they need to protect themselves against cyber criminals, and they’re willing to pay good money to safeguard their online operations. If you think this is a trend worth buying into, have a look at our list of online security stocks.

#5 Trend: The Kapitall Community
Average 1-year return of the list: 111%
Ten companies included in the list

It’s interesting to note that the ten stocks most viewed by Kapitall users have had an average 1-year return of 111%. Does that mean we’re all analyzing companies that have already moved too far too fast, or are these kinds of gains sustainable?

Thanks for your ongoing support and feedback. Till next week!

The Kapitall Team