No one knows what’s coming tomorrow, but what’s coming in a decade is a safer bet

 

When I was sixteen, I ended up lost in a mountain range in Colorado.

I was attending a wilderness adventure course in which a group of about 10 kids hiked, climbed, and camped in the Rockies under the guidance of an experienced outdoorsman.

It’s been so long now that I don’t recall exactly how it happened, but a couple weeks into our month-long excursion, someone lost our map. Complicating matters, somehow the compass broke.

Together, this meant that we suddenly found ourselves miles from civilization, high up in the Rockies, with no “guidance system” so to speak.

Fortunately, our leader was level-headed and had a simple solution …

He recognized a peak off in the distance. And given where we’d started our adventure, he suggested that if we simply walked toward that peak each day, we’d eventually hit Interstate 70.

The key was to make sure we remained focused on that one peak and didn’t veer off-course, even though other directions might have appeared to be leading somewhere.

Three days later, we found ourselves cresting a mountain pass that looked down upon the highway below.

***Today, many traditional “guidance” systems for investors are broken

 

Earnings and guidance are two of the truest “compasses” an investor has at his disposal.

Unfortunately, earnings now are distorted by this coronavirus bizarro-world we’re suddenly in … forward-looking guidance has been pulled by countless companies … even traditional valuation multiples are distorted due to today’s atypical earnings environment.

Complicating matters, endless questions linger …

How many Main Street business will make it through this? … Will they rehire at 100%? … When will nervous consumers head out again? … Will razor-thin-margin businesses like restaurants survive in a limited-revenue, “social distancing” world? … Will a coronavirus resurgence require us to lockdown in the fall? … Will the much-banked-upon vaccine come? … What happens if it’s delayed? …

Now, throw in new questions in the wake of the George Floyd tragedy …

Will the mass protests seen across the nation over the last few nights accelerate a coronavirus resurgence? … How will the looting and vandalism experienced in many communities impact a fragile economic recovery? …

Keep in mind, all this is before we factor in escalating tensions with China.

Here we are, lost in the Rockies without navigation tools.

So, what is a peak off in the distance that can serve as our investment focal point?

It would need to be something sturdy … an investment trend that’s going to manifest, regardless of the coronavirus, regardless of the timeframe in which we emerge on the other side of this … it must be an investment trend that’s going to drive trillions of dollars of investment wealth over this decade …

For my money, you can’t find a better peak than 5G.

Will stocks be up or down come Labor Day? I have no idea.

Will a vaccine come in early 2021? I have no idea.

Will our world be back to normal by this time next year? I have no idea.

But will 5G-related technologies create trillions of dollars of riches for select tech investors this decade?

Based on all I’ve read and researched, I believe the answer is “absolutely.”

Given this, today, let’s turn to perhaps our biggest 5G-bull, Matt McCall, and find out what he’s suggesting investors do today to set themselves up for 5G gains tomorrow.

***The 5G investment strategy that continues paying off

 

What companies come to mind when you think of “5G”?

For a great many investors, it’s infrastructure companies like AT&T, T-Mobile, or Verizon. This makes sense since they’re the most “visible” companies tied to 5G technology. After all, when we think about internet speed, our minds leap to our internet providers and servicers.

But according to Matt, there’s a far-more lucrative investment opportunity behind this …

From his recent update to subscribers:

To truly understand where the big opportunities in 5G will come from, you must know what this technology is really about.

Think of a wireless communication network like 5G as you do a highway system. But instead of cars and trucks traveling on these highways, it’s phone calls, texts, emails, and payments.

The 5G superhighway that’s under construction is really about information.

The massive upgrade to 5G will allow us to shoot all that information back and forth 100 times faster — as fast as the blink of an eye. In other words, you’ll be able to send and download huge amounts of data in near real-time.

That’s the untold game changer coming with 5G. It’s not about us being able to download a movie faster. It’s about all the breakthrough technologies that will be enabled by this speed and reliability. That’s why the technology is poised to unlock more than $56 trillion in new wealth in the coming years.

Matt notes that many investors are looking at 5G the wrong way — they’re focusing on the infrastructure-buildout plays, which Matt refers to as “the building of the highway itself.”

But Matt believes this is short-sighted:

You might be able to make money now, as the 5G superhighway is being built. But once it’s in place, then what?

I believe the massive wealth-building opportunity that comes with 5G is in the revolutionary new companies setting up shop along the brand-new superhighway. They are set to make more money over a much longer period of time.

***Looking at examples of the companies alongside the highway versus the highway itself

 

This past September, we featured a story in the Digest about a surgery in China.

From that issue:

This past March in Beijing, a patient with Parkinson’s disease went into surgery to receive a deep brain stimulation (DBS) implant.

While significant for the patient, this wasn’t exactly a huge deal for the medical community, right? This type of surgery happens with relative frequency.

The difference is the surgeon was 1,800 miles away from the patient when it happened. It was the world’s first remote brain surgery … thanks to 5G technology.

Dr. Ling Zhipei manipulated the instruments in Beijing, operating on the patient who was 1,864 miles away in Sanya City, Hainan. He did it via a computer, using a 5G network powered by China Mobile and Huawei.

In many ways, this remote surgery is a brand-new industry. That’s because 5G is now offering the surgical center practically endless new patients around the world, as “near the doctor” is no longer a prerequisite.

In other words, all else equal, 5G has now laid the groundwork for elevated revenues for the practice as far as the eye can see.

As another illustration, take Apple.

Two weeks ago, we profiled Apple Glasses, which are the tech giant’s augmented reality offering that will overlay data into your field of vision in real time.

From that Digest:

Tech companies have been dabbling with augmented reality for years with little real success, and practically zero applications that anyone actually wanted to use.

So, what’s different about today?

Well, in short, it’s something our analysts have been tracking and writing about for a long time now …

5G.

For augmented reality devices to work in real-time, carrying massive quantities of data without interruption, it requires blazing fast, robust wireless connections.

We haven’t had this until the recent rollout of 5G wireless connectivity.

***Matt’s 5G portfolio is already surging

 

Matt launched his “5G Highway” portfolio on May 7th. As I write Monday morning, the aggregate portfolio is up 15% versus 7% for the S&P over the same period. Impressively, not a single one of Matt’s recommendations in this portfolio is down.

But obviously, 15% gains within a few weeks is nothing in the big-picture — so let’s return to the big-picture, because that’s really what this is about … focusing on the peak way off in the distance.

If 5G truly is a game-changing breakthrough … if it’s going to be the foundation that supports a slew of new industries, bolt-on technologies, and products … if it’s going to transform our world … then imagine the growth that 5G leaders will see over this decade.

Now, what could that look like in your portfolio?

As a loose comparable, consider data-storage company, EMC, and what its stock did over a decade.

From its closing stock price on the last trading day of 1989 through the end of 2000, a $5,000 investment in EMC would have ended up being worth roughly $3.5 million.

Here in the Digest, we often talk about the power of finding the right trend. Today, there are a handful of trends that stand to generate EMC-ballpark returns over the coming decade — personalized medicine, self-driving cars, and artificial intelligence, to name just a few.

But what underpins these trends?

5G technology.

Is this the peak that’s guiding you today?

Have a good evening,

Jeff Remsburg