He may not be Public Enemy No. 1, but Federal Reserve Chairman Jerome Powell sure is taking some heat these days.

You see, the economy is still expanding, albeit at a slower pace. Gross domestic product ("GDP"), the measure of the value of all goods and services produced, for fourth quarter 2022 grew around 3% – respectable. And considering that inflation remains too high, this growth is even more impressive.

But here's the thing: Powell is in a tough spot. If he raises interest rates too high, he risks driving us into a recession. It's no wonder a lot of the "pros" in the $22 trillion financial services industry are looking for better ways to manage their money.

I've uncovered a technology leader with extensive experience providing robust, cost-effective solutions for financial firms who need help managing all of those assets.

This company has been growing its diluted per-share profits by an average of more than 21%. And rest assured, there's plenty more upside for us to capture...

Headlines are Misleading

A look at recent headlines suggests a recession is at hand. And while one may come later this year, right now we're still facing a labor shortage.

In 2019, before Covid whacked the economy, jobless claims averaged 220,000 a week. But a recent four-week snapshot shows an average of around 197,500 claims.

Powell has signaled that he will remain an inflation fighter. That means even financial gurus with master's degrees, robust computers, and years of experience are trying to sort through all the data and plan accordingly.

This explains why we still have choppy trading as the stock market rebounds from its recent lows. And don't forget about inflation and interest rates – they've wreaked havoc on the bond market, too.

As interest rates rise, existing bonds lose their appeal, and their prices fall. That accelerates trading as everyone looks to get out of losing positions and find something better.

All this puts pressure on financial firms, which need all the help they can get managing money and offering customers promising returns. And one company is there to work with these professionals...

A Tech Powerhouse

It pays to think of this savvy company as something of a one-stop shop for technology, administration, and services for the entire financial sector.

You see, whether a company is a full-service money manager, or only manages private money, it can receive help from the company I'm talking about.

This company works with insurance and real estate firms, mortgage bankers, hedge funds, and stock and bond traders, not to mention municipal bond issuers.

Clients use this company's software modules to track investments, liabilities, and assets, as well as to build their businesses while staying inside the lines with respect to regulations. In fact, this company is the world's largest hedge fund and private equity administrator, as well as the largest mutual fund transfer agency.

In today's finance world, that makes it a bona fide tech powerhouse.

A Leader in the Field

This company believes in innovation. Just look at its cloud-based system, Aloha, which features machine learning and artificial intelligence capabilities.

Aloha provides everything from accounting and performance tracking to portfolio management and trading – all in a convenient dashboard.

Oddly enough, irony abounds here. Before the 2008 financial crisis, the company I'm referring to was known for mundane back-office software that helped firms conduct and monitor transactions. But the financial crisis changed things.

It showed the need for financial companies to closely track all aspects of their finances, investing, and trading. Executives demanded more control over what their bankers, traders, and dealmakers were doing. Combined with new regulations designed to rein in the excesses of Wall Street, and what you got was a boom in demand for financial compliance software.

The company I'm talking about is a leader in this field. It was early to see the opportunity that cloud-based platforms could bring to increasing the value for customers, while also increasing profits for itself. It built the tools financial firms needed to make it in the tough new world of post-2008 compliance.

Today, this company provides key services to more than 40 of the world's largest fund managers, nine of the top 10 prime brokers, and three-quarters of the top 100 hedge funds.

Some 99% of all U.S. short-term commercial bonds are handled on this company's systems, as are 95% of all U.S. municipal bonds. Last year, $36 trillion in transactions happened through this company's linking software that makes money flows easier to set up.

Add it up, and you can see that as rising inflation and rate hikes send more investors looking for new and better investments, the financial industry is going to be swamped with transactions. That'll undoubtedly increase the already high demand for this company's indispensable cloud software platform.

An Earnings Double Twice Over?

Earlier, I noted that the company I'm talking about has been growing diluted earnings per share by about 21% a year. At that rate, it will double its earnings in a little more than three years and double them again six years after that.

We'll get a clear sense of how this company is executing its plans when it reports earnings on February 7. In the meantime, I suggest adding this company to your portfolio now and potentially adding to it over time.

If you do, you could potentially earn returns of nearly 300%. If you're a "Pro" subscriber, I'll reveal the name of this company and show you how to maximize your profit potential. Don't miss out!

Cheers and Good Investing,

Chief Investment Officer
Trend Trader Daily

Tags: cloud technology