Join Matt McCall for a special, live event today … NASA has teamed up with Nokia to put 4G and 5G on the moon … the cutting-edge tech stocks that are driving the Technochasm
Today’s Digest is hitting your inbox a bit earlier than usual to make sure you know about a special, live event that’s happening today at 4pm ET.
To set it up, take a look at the chart below. Frankly, it’s the stuff of investment-nightmares …
As fate would have it, Matt McCall ran smack into this market-drop in early February.
On February 5th, Matt launched a portfolio called the Microcap Millionaire as part of his Early Stage Investor service.
In a matter of days, the market collapsed as panic over the coronavirus gripped the nation.
Here’s Matt, reflecting back on it:
… yeah, crummy timing.
But I learned a long time ago that the best way to build life-changing wealth doesn’t depend on timing the market.
It depends on timing your investment. You want to invest early in innovative companies operating in hypergrowth trends.
Even if my timing in the market isn’t perfect, these smaller companies still have the ability to greatly outperform the larger stock indexes …
And outperform they have.
This same portfolio, launched at just about the worst time possible, is now up an average of 59% as I write Tuesday morning.
For comparison, the S&P is up just 4% over the same period. Even the tech-heavy Nasdaq with its high-flying tech stocks is up just 21%.
So, what’s behind Matt’s winners? What are their shared characteristics, and how does he find them?
That’s the subject of today’s live event with Matt called Bull Market Confidential, beginning at 4pm ET.
When it comes to extreme wealth creation, few endeavors can compare to being an owner of a small company that grows large …
We’re still at the beginning of this decade filled with massive potential, and the biggest gains will come from buying the best, most innovative small stocks now …
(They) happen to be the best way to make a lot of money in the next decade … a decade that will be so big and monumental that I’ve come up with my own name for it: The Roaring 2020s.
Last note before we dive into the rest of today’s Digest …
Just for attending Bull Market Confidential, you’ll get the ticker of one of Matt’s top small-cap picks today — totally free. He believes it has 1,000%+ potential.
Put it all together and you’ll be learning how Matt finds his small high-flying stocks … why he believes this decade is poised to produce massive returns from the right small-caps … and the name of a specific stock Matt believes will 10X your money.
It’s all today at 4pm ET. Click here to join us. Hope to see you there.
***Get ready for 5G to be everywhere … including the moon
5G is headed into outer space …
Yesterday, we learned that NASA is teaming up with Finnish telecom firm, Nokia, to build the first-ever 4G mobile network on the moon.
Though 4G is the chosen network version for now, plans are to bring 5G to the moon in the coming years.
Under its Artemis program, NASA plans to send astronauts to the moon by 2024 — for the first time in five decades — followed by a “sustainable” human presence by 2028 …
Nokia said its 4G network will allow astronauts to carry out a number of activities including making voice and video calls, sending important data and deploying payloads.
It plans to eventually launch 5G on the moon as well.
As part of the plan, NASA has chosen Elon Musk’s SpaceX, Jeff Bezos’ Blue Origin, and a lesser-known company called Dynetics to develop the human landers that will put astronauts on the moon.
Now, while space exploration is incredibly exciting — and will offer its own investment opportunities — let’s rein it in for now and refocus on 5G’s growth here on earth.
***The 5G buildout is going to be a massive, global phenomenon
Our macro specialist, Eric Fry, referenced research from telecom giant Nokia — the same one headed to the moon — in his recent issue of Smart Money.
He noted that, according to Nokia, the coming 5G boom will see more than 70% of the world’s companies invest in 5G over the next five years.
Take a moment and consider the mind-boggling scope of that wave of investment capital …
70% of every company in the world will be migrating to 5G.
Nokia’s research also revealed that one-third of companies across all regions fear being outpaced by their competition if they don’t invest in 5G within the next three years.
Here’s Eric for more:
The big picture trend is undeniable … Technology is re-writing the rules of commerce. The companies that embrace and apply new technologies to their competitive advantage will flourish, while those that don’t, won’t.
That’s a basic principle of capitalism.
It’s called “creative destruction” and it has been defining American capitalism for nearly 200 years.
Building on Eric’s comment, older Digest readers might recall a prophetic ad from IBM back in the early 1980s …
In it, two men watched a mechanical shovel digging a hole. “If it wasn’t for that machine, 12 men with shovels could be doing that job,” gripes one of the men.
The other replies, “If it wasn’t for your 12 shovels, 200 men with teaspoons could be doing that job.”
The ad put a simple spin on a powerful point …
***Technology continues to advance — and as it does, it destroys old ways of doing things
While this has always been true, there’s a difference right now.
Back to Eric:
But today, the pace of both creativity and destruction is accelerating rapidly. That’s why it’s so critical for companies to be sure they’re on the right side of technology … and for investors to do the same.
Make no mistake; 5G is on the right side of technology. Companies that hope to remain competitive must embrace and integrate it as quickly and efficiently as possible.
Regular Digest readers will recognize the term, Technochasm.
Eric coined it to describe the widening cavern between ho-hum returns from average stocks and soaring returns from cutting-edge tech-related companies.
The term also applies to the increasing wealth-divide between the “haves” and “have nots” in our society — with much of that difference stemming from the “haves” ability to take advantage of these tech investment gains.
Here’s Eric putting numbers on all this:
During the last eight years, for example, the S&P 500 Information Technology Index has delivered a total return of more than 400%, which is double the gains of the entire S&P 500 over the same time frame.
But the technology sector’s extraordinary outperformance over this timeframe was actually much better than just a double.
Excluding tech stocks, the S&P 500 Index produced a gain of just 117% during the last 8 years — or barely one quarter the gains of the S&P’s tech stocks.
The lesson is clear: tech stocks have been trouncing the overall market.
***Two 5G companies benefiting from sector growth … and politics
In Eric’s update, he points toward Nokia and fellow telecom, Ericsson, as two companies poised to benefit from the global 5G rollout.
But these two companies have an additional tailwind behind them — the U.S.’s refusal to work with the biggest global telecom out there, the Chinese behemoth, Huawei.
Back to Eric:
Western companies that operate in the 5G sector stand to benefit from a powerful political tailwind that I’ve dubbed, “Not Made in China” …
As a result, Huawei is certain to lose market share in both the U.S. and Europe over the next few years.
Huawei’s loss will be somebody’s gain, and that gain could be enormous …
“After more U.S. sanctions have all-but-crippled the future of Huawei’s global networks business — and its efforts to become the dominant 5G provider — dollar signs are already materializing for its rivals,” Forbes observed recently.
“At the crux of Huawei’s withdrawal is an annual $27 billion opportunity for its competitors — including Nokia, Ericsson and Samsung — to become the go-to providers of 5G and other telecommunications services to domestic carriers …”
Eric goes on to write that, while Ericsson and Nokia will certainly benefit from Huawei’s lost business, they may not benefit the most:
I’ve identified two particular companies operating in sub-segments of the 5G market that could benefit even more from the Huawei ban than major companies in the industry.
To learn more about these two stocks and become one of Eric’s subscribers, click here. At a minimum, you should recognize the sheer enormity of the investment wealth coming thanks to 5G and the Technochasm. Make sure your portfolio is ready.
As we sign off, a final reminder to join us today at 4pm ET for Matt’s Bull Market Confidential.
As you might guess, many of Matt’s triple-digit small-cap winners have come courtesy of the same cutting-edge technologies that Eric points toward as part of the Technochasm. Join us in a few hours to learn more.
Have a good evening,