Motif CEO, Hardeep Walia on Fox Business News

Motif CEO, Hardeep Walia on Fox Business News


– And now a way that you
can make money by investing in this news like the recent
cyber security headlines. Joining me now is Hardeep Walia,
the CEO of Motif Investing. Your always following in the news, letting your customers
create their own motifs, you’re saying cyber
security is hot right now. – It is. It’s on of our top ten motifs, a lot of people are following it, and we live in a day
and age where every week there’s a story about some compromise. I mean, companies have been spending over 67 billion dollars, the government’s spending close to 16 Billion dollars, it’s
the new security risk. It’s no longer terrorism,
it’s cyber terrorism, that we as a country
need to be worried about. – Your cyber security motif
is up 40% over the last year. Which goes in correlation with the stocks, but, again, these motifs as
an example have got names like Check Point, Palo Alto, Juniper, Radware, Symantec FireEye, NetQin… But this is an example
of what your clients could indeed buy if they
wanted to follow the news. – Absolutely. What we do is
give you baskets of stocks. We intelligently weight
them, so the weighting… They’re not market-cap, their
adjusted for their exposure to cyber security and
we allow you to purchase all these stocks for the cost
of a single stock transaction with no fees, no management. You pay $9.95, you could put
a Million dollars to work you could put $250 on it. – I just want to show our viewers… This is your computer
which you’re actually accessing right now to kind of go through the performance of
the cyber security motif. And this is the one year picture of what we’re looking at right now. – Absolutely. The blue
line is cyber security, the green line is the S&P 500, so it gives you a sense of how the motif has performed over the last year. – Okay, and go ahead and
pull up the next motif, and this is another, I
guess, hot place right now. Especially if you’re young, is gaming. It’s online gaming, I mean, this is people going and playing against
each other in other countries and having their own personalities… – These are the massively multiplayer onine games that are just obsessing. I mean they kidnapped my wife, she can’t stop playing
CandyCrush these days. – (laughs) You told me that! – And so these are companies… What people don’t realize,
North American companies are very good at creative games, but, it’s the Asian companies that are, and international companies in general, that make a lot of money out of this. – We should that this is up
about 40 points more then… – 52.9% in the last year. – In the last year,
which beats the S&P 500. – Which beats the S&P which
is at 23.5% over that. But this is an interesting chart because with Candy Crush about to go IPO, if you look at the orange line here, this is about the time
that Zynga went IPO and… – So the orange line is Zynga, right? – Is Zynga stock, the
blue line is this motif, and the green line is the S&P 500. So over two years you’ve
seen the risks of investing in an IPO and the blue line gives you a much more diversified bet
and this is one reason… – Cause you would’ve been hurt by Zynga if you would have bought just that stock, but if you did this motif
style then you would get Activision, Electronic Arts… – You would have lost 60% of
your money had you bought Zynga around the time of the IPO. You would have made 34% on our motif. – Oh so the motif, all right, it’s interesting how
you’re following the news, are there motifs right now that you’re getting rid of because the news is passed? I know that the last
time you were on the show we talked about your healthcare motif, your Obamacare motif we called it… – Obamacare is actually gaining
a ton of momemtum right now. – Is it really? – It really is, we built a motif
right after hurricane Sandy to invest in the rebuilding efforts, so obviously, that got phased out, but a lot of trends are systemic. Some take very short term. Our Fed tapering motif
is on fire right now and everyone’s watching a
lot of the market returns given by the decision of the Fed. So we’ve got some interesting motifs that are trending up right now. One that are trending down
are typically commodities, precious metals, they’re
not doing very well. But things like robotics
are doing extremely well. – Interesting. Well
Hardeep, certainly it is a different and new way to invest, but I know that business is
booming for you right now, so you got a lot of
interest from new clients. – Absolutely, we’ve had
35 thousand motifs built by our customers in the last few months. – Making your own, I call
it making your own ETF. Making your own index kind of thing. So, do-it-yourself, Hardeep,
thank you very much, it’s always good to
talk to you about this. Following the news and
making some money off of it. Somebody call Charles Payne.

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