The next crisis is here.

The cyber attack on Sony lasted just 25 days, but it’s effects are just starting.

The hack will directly cost the company up to $200 million because of a 112-minute comedy that North Korea considered an “act of war.”

Rest assured there are hundreds of millions of more costs for Sony to come from it too.

But there’s a bigger impact though.

Former Republican Speaker of the House Newt Gingrich said we lost our first cyber war, setting a very dangerous precedent.

We were crippled on a field of battle without ever spilling a drop of blood. And all it took was some well-trained computer experts to set off the equivalent of an electronic nuclear bomb.

This was an assault -- so covert, so dangerous – that it will cost more businesses dearly when it happens again. But it could make investors a small fortune too.

The War on Cyber Terror Has Begun

Everyone knows that war is costly. It takes equipment, time, manpower, and a lot of money to fight a war.

Cyber warfare is no different.

So the stage is set for a major boom in cyber security spending. Far bigger than the markets are anticipating.

Consider this.

Current estimates put global spending in cyber security was in 2011 was $60 billion.

This year it will rise to $71.1 billion.

Next year it will be $76.9 billion.

Those are some big numbers and steady growth too.

But they’re just what was needed to combat the “old world” of cyber attacks like:

  • At one time the U.S. Department of Defense detected up to 250,000 threats every hour to its systems.
  • A PwC survey found that the number of cyber attacks has soared 48% this year alone to 42.8 million. JPMorgan, Bank of America, Domino’s, Target, the U.S. Post Office and the State Department were among them.
  • JPMorgan just warned that a breach could impact 76 million households, and up to seven million small businesses. In 2013, the bank was hit by a denial of service attack, too, highlighting a growing threat to our banks.
  • Anti-virus software-company, Symantec (SYMC) has estimated that cyber-attacks on U.S. businesses are up 90% since 2013.

All that was before the Sony hack.

One recent estimate puts cyber security spending to soar to $700 billion by 2024.

That’s a 9-fold increase from 2015 levels. Truly explosive the growth. The kind that can make cyber security one of the biggest growth markets and have a major impact on cyber security stocks.

This is the Beginning…

The stage is set for cyber security to enter a multi-year bull market. And it’s already starting to show.

Since 2013 the S&P 500 is up about 45%.

Meanwhile, the ISE Cyber Security Index is blowing the rest of the market away. It’s up 75%.

There are likely many, many more gains to come for these stocks too.

Strong fundamental growth, product demand, and value driven by fear could lead to incredible returns for smart investors.

What’s important to remember is this. A 25-day attack just cost Sony $200 million directly and untold millions more over time.

Corporations, governments, individuals must be prepared for the next one.

That’s why we believe cyber security stocks could double over the next several years.

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