→ Module 2 2015 Investing Strategy: Capitalizing on the Tech Boom & Market Shifts

2015 Investing Strategy: Capitalizing on the Tech Boom & Market Shifts

The mid-2010s were defined by low interest rates, the rise of FAANG stocks, and the early stages of AI/cloud computing. If you were investing in 2015, here’s how to build a winning portfolio using the best strategies of the time.

Step 1: 2015 Market Overview

Key Economic & Market Trends

Zero Interest Rate Policy (ZIRP) – Fed funds rate at 0-0.25% (first hike in Dec 2015)
Oil Price Collapse – Crude fell from $100+ (2014) to $26/barrel (2016)
Strong US Dollar – Hurt multinational earnings
Tech Dominance – FAANG stocks (Facebook, Apple, Amazon, Netflix, Google) surged
China Slowdown – Stock market crash (Summer 2015)

Available Investing Tools

Commission-Free Trading: Robinhood launched (2015)
Financial News: Bloomberg, CNBC, Seeking Alpha
Stock Screeners: Finviz, Yahoo Finance
Early AI Tools: Quantopian (algorithmic trading)

Step 2: Best Investment Strategies for 2015

1. The FAANG Trade (Tech Megacaps)

Top Picks:

Apple (AAPL) – iPhone 6 boom, first $700B company
Amazon (AMZN) – AWS cloud growth accelerating
Facebook (FB) – Mobile ad revenue exploding
Netflix (NFLX) – Global expansion (130M+ subs by 2018)
Google (GOOGL) – Android & YouTube dominance

Strategy: Buy & hold despite high P/Es (growth justified valuations).

2. Cloud Computing & SaaS Breakouts

Emerging Winners:

Salesforce (CRM) – SaaS leader
Adobe (ADBE) – Shift to subscription model
Microsoft (MSFT) – Azure cloud growth

Why? Businesses were rapidly adopting cloud solutions.

3. Biotech Boom (Pre-2016 Crash)

2015 Hot Stocks:

Gilead (GILD) – Hepatitis C drugs
Biogen (BIIB) – Alzheimer’s research
Celgene (CELG) – Cancer treatments

Risk: Hillary Clinton’s drug pricing tweets crashed sector in 2016.

4. Short Oil & Energy Stocks

2015 Collapse Plays:

Short Crude Oil (USO ETF) – Oversupply crisis
Avoid Exxon (XOM), Chevron (CVX) – Falling profits

Better Alternative: Renewables (TSLA, FSLR) – Solar/wind gaining traction.

Step 3: How to Research Stocks in 2015

1. Key Metrics to Watch

Revenue Growth >20% (for tech)
Free Cash Flow Positive (avoid cash-burning startups)
PEG Ratio <2 (growth at reasonable price)

2. Best Data Sources

SEC Edgar – Free filings
Bloomberg Terminal – Institutional-grade data
Twitter/Seeking Alpha – Crowdsourced analysis

3. Technical Analysis Trends

50-day & 200-day MA crossovers
RSI (70+ = overbought, 30- = oversold)

Step 4: Executing Trades in 2015

Trading Options

Robinhood (commission-free trades)
TD Ameritrade / E-Trade (~$7 per trade)
First algo-trading apps (Quantopian)

New Risks

Flash crashes (August 2015 volatility)
High-frequency trading (HFT) dominance

Step 5: Risk Management

1. Diversification (2015 Model Portfolio)

40% Tech (FAANG + Cloud)
20% Healthcare (Biotech, Pharma)
20% Cash (for dips)
10% Short Oil (USO puts)
10% Speculative (AI, Bitcoin early phase)

2. Exit Signals

Fed rate hikes (Dec 2015 = first in 9 years)
China market crash (Aug 2015 contagion risk)
Oil below $30/barrel (oversold bounce chance)

Sample 2015 Portfolio

Stock/ETF	Sector	Thesis
AAPL	Tech	iPhone & services growth
AMZN	E-commerce	AWS & retail dominance
FB	Social Media	Mobile ad explosion
CRM	Cloud	SaaS leader
GILD	Biotech	Blockbuster drugs
S&P 500 (SPY)	Index	Core holding

Historical Performance

$10,000 invested in 2015 → $25,000+ by 2020
FAANG stocks 3-5x returns
Cloud stocks (CRM, ADBE) 4-8x gains

Key Lesson: 2015 was the last great entry point before the late-2010s tech megaboom.