Global tensions with Russia have continued to escalate.
Countries around the world are placing sanctions on Russia that could break its financial system.
Several Russian banks have been removed from the SWIFT banking system. This will disrupt Russia’s ability to trade and make payments.
In addition, there’s a push to freeze Russian central bank assets held abroad. This will limit Russia’s access to capital.
As a result, the Russian ruble lost half its value at one point.
This is bad for Russia. But it’s creating a HUGE opportunity in cybersecurity stocks.
Prepare for More Russian Cyberattacks
U.S. officials expect Russia to retaliate by ramping up its cyberwarfare.
We’ve already seen Russia’s cyberattacks several times in the past.
In 2020, Russians hacked a major IT company, SolarWinds.
They planted malicious code that was pushed to SolarWinds’ customers.
This allowed Russia to spy on them and obtain sensitive data.
In 2021, Russians hacked Colonial Pipeline. This shut down one of the largest U.S. fuel pipelines for nearly a week.
The Colonial Pipeline delivers 45% of the East Coast’s gas, so 11 states saw shortages.
Gas stations and Americans were left without gas.
And Russia is likely looking to deploy cyberattacks again.
I Expect Spending on Cybersecurity Will Skyrocket
Russia already hacked the Ukraine’s government last week.
Companies and governments around the world are preparing for more attacks.
With Russia in the spotlight, I expect spending on cybersecurity tools will skyrocket.
This will boost earnings for cybersecurity companies.
Cybersecurity is more than a $200 billion market and was already poised for growth before the Russian invasion.
Forecasts have spending on cybersecurity reaching $345 billion within five years.
(Source: MarketsAndMarkets.)
Despite blossoming into a huge market, cybersecurity stocks are down nearly 30% since November.
This is due to weakness in the tech sector across the board.
If you’re invested in cybersecurity stocks already, you shouldn’t panic.
The recent pullback is a chance to add more to your position.
And if you aren’t invested in cybersecurity stocks, you have a great buying opportunity.
The Russian conflict is moving cybersecurity stocks higher NOW.
A great place to put your money is the ETFMG Prime Cyber Security ETF (NYSE: HACK).
You can watch my new video about the HACK ETF by clicking on the video below.
But some cybersecurity stocks have more to gain than others.
One of them is in Ian King’s Strategic Fortunes portfolio.
This global cybersecurity leader offers an all-in-one platform for its customers.
For more info on Strategic Fortunes, you can check out Ian’s special presentation.
Regards,
Research Analyst, Strategic Fortunes
Morning Movers
From open till noon Eastern time.
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