What does "Zeitgeist" mean in the investment context?

Zeitgeist refers to the defining spirit or mood of a particular period. In investing, "Zeitgeist Surfers" are companies that excel at identifying, adapting to, and profiting from current cultural trends and popular movements. These businesses have built models specifically designed to capitalize on what's capturing public attention right now.

Are trend-focused stocks more risky than other investments?

Yes, trend-focused stocks often carry higher volatility than the broader market. Their success depends on correctly anticipating and capitalizing on cultural movements that can change rapidly. While this approach offers potential for significant growth, it also comes with increased risk if trends shift unexpectedly. These stocks are best considered as a tactical, higher-risk portion of a diversified portfolio.

What is a "high-beta" investment?

A high-beta investment tends to be more volatile than the market average. When the market goes up, high-beta stocks typically rise more than average; when markets fall, they often drop more dramatically. The Zeitgeist Surfers theme features higher-beta stocks because companies riding cultural trends experience more pronounced reactions to market movements and sentiment.

What does "tactical allocation" mean?

Tactical allocation refers to an investment approach where you actively adjust portions of your portfolio to capitalize on short to medium-term opportunities. Unlike strategic (long-term) allocations, tactical positions like the Zeitgeist Surfers theme might represent a smaller percentage of your overall investments and could be adjusted more frequently as trends and market conditions change.

How is social media affecting these trend-focused companies?

Social media acts as both a catalyst and amplifier for these companies. It accelerates trend cycles, creating more opportunities for nimble businesses to capitalize on viral moments. Many companies in this theme either directly operate social platforms or have built marketing strategies heavily dependent on social media to identify, create, and monetize trends. The 24/7 nature of social media continues to fuel new opportunities for these businesses.

16 handpicked stocks

Zeitgeist Surfers

Ready to back companies that know how to stay popular? This carefully selected group of stocks represents businesses with an uncanny ability to ride cultural waves and capitalize on what's trending now. Our analysts have identified these companies for their potential to turn cultural momentum into growth.

Han Tan | Market Analyst

Updated 2 days ago | Published at juin 17