One of my favourite tools is the connectivity platform IFTTT.com. It stands for “If This Then That” — simply, one action will trigger another. For example, I have it set up so that when I post a photo to my Instagram feed, it automatically copies that photo to a Google photo album that displays on my TV. Neat and simple.
In investing we get lots of IFTTT situations. The delisting of Curro, for instance, will surely be good for listed education stocks? People held Curro because they like the education story and they had decided on Curro. Now they’ve had to sell because of the delisting, but they still like education stocks, so some of that Curro money will find its way to other counters in the sector. Of course, the question of how much money will flow there and how quickly it will take is up for debate, but there has been a short-term move of money into Stadio and AdvTech*; AdvTech specifically is having a good run to new record highs.
As an investor or trader, these are valuable themes to explore. But terms and conditions apply
A broader and longer-term trend I have been thinking about is the impact of GLP-1 drugs like Ozempic and Wegovy beyond just profits for the drug manufacturers. The obvious effect is that snack and fast-food producers will be under pressure. As people eat less, they’ll cut out junk food and beverages; this is sure to hurt companies such as Coke and McDonald’s.
And then what about dating apps? If people are losing weight, they’ll feel better about themselves and may want to start dating. Where will they start looking? Probably on dating apps. Match.com owns Tinder, Hinge, OkCupid and more, and could benefit from this trend. Of course, this will be over the longer term and may not be material — but it’s something worth keeping in mind.
Another IFTTT that was recently suggested on X relates to the rand being inversely correlated to global fears. As fear and uncertainty increase in the world, gold moves higher; this supports the rand and it appreciates. In other words, as geopolitical risk increases, the rand will strengthen against the dollar.
As an investor or trader, these are valuable themes to explore. But terms and conditions apply. You need to spot these trends before the rest of the market wakes up to the theory — or at least early enough to actually benefit. That said, if the trend plays out over the long term, this becomes less important.
So always question whether this will happen in the next few weeks or months, or if it’s a trend that will materialise over years; this will determine how you respond. Also always ask whether this is really material. You may be completely right about the IFTTT result, but does it really change the bottom-line profitability of a company? Or is the company able to respond and negate the risk?
The writer holds shares in AdvTech
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