Join Eric Fry and Louis Navellier for tonight’s Technochasm Summit … why there’s no going back to yesterday’s economy … making sure your portfolio is aligned with this sea-change
Tonight, at 7 PM ET, investment legends Eric Fry and Louis Navellier will be hosting a special, live event called The Technochasm Summit.
If I could sum up why you need to attend in one chart, it would be this …
What you’re looking at is a tale of two stock markets …
One creates wealth. The other destroys it.
One is rooted in yesterday’s economy. The other is riding the wave of technological advancement.
The black line, which has gained 303% over roughly the last six years, is IGV, the iShares Tech-Software ETF.
It’s a proxy for “tech.”
The green line, which has lost 51% over the same period, is XLE, the SPDR Energy Select Sector ETF.
It’s a proxy for “non-tech.”
And that gaping cavern separating IGV’s high-point from XLE’s low-point?
That’s the Technochasm.
Tonight, Eric and Louis are going to be discussing not only how to avoid being a victim of the Technochasm, but how to create vast investment riches from it.
***The 2020s is going to generate enormous wealth for some, while destroying it for others
Regular Digest readers are familiar with the Technochasm — that’s Eric’s term to describe the vast, and widening, wealth gap that’s taking place in America. Much of this gap can be attributed to investment wealth from cutting-edge technologies.
As we stand today at the beginning of a new decade, this divide will only intensify.
What this growing divide means for you, as an investor, is that it’s critical to position your portfolio on the right side of it. If you don’t, the wealth destruction could be life changing.
That’s no exaggeration.
You just saw what happened to XLE over the last six years.
Keep in mind, XLE holds the biggest, most successful energy companies in the world — Exxon, Chevron, ConocoPhillips, Marathon, and Kinder Morgan to name a few.
Yet, in the last six years, it has destroyed 51% of every invested dollar.
If you’d been approaching retirement over the last decade, needing to walk a fine line between growing your nest egg and protecting it, this loss would likely have destroyed your financial security.
This same dynamic is playing out in many other sectors. And in doing so, it’s transforming our stock market.
***The creative destruction of technology
Technology continues to advance. And as it does, it destroys old ways of doing things.
While this has always been true, it’s happening today at a far greater pace. There are two reasons behind this …
Reason 1 — The Law of Accelerating Returns
This principle is rooted in exponential progress — basically, the idea that each new technological step advances on a multiplicative basis, rather than an additive basis.
For example, the old way of growth was 1 + 1 = 2 … the next advancement comes and we add another “+1” to get “3.” The next step comes and we add another “+1” to get “4.”
But thanks to exponential progress and the Law of Accelerating Returns, this has all changed — now we multiply the advancements.
So, take your first step … and double it. We’re at “2.” Now, take that “2” and double it again — we’re at “4.” Double it again, and we’re suddenly at “8.” Then “16.”
Today’s technology is growing at a multiplicative rate.
While this has been true for some time now, a recent occurrence is accelerating this change even more. This leads us to the second reason …
Reason 2 — the COVID-19 Pandemic
The economic lockdowns throughout this year have accelerated the transition from “people-powered” to “robot-powered” in the business sector.
We’re seeing this throughout the entire economy …
From corner grocery stores — a robot that counts inventory, a real example being “Tally” from Schnucks grocery store in St. Louis …
To big retailers — the apparel store, Gap, which is more than tripling the number of item-picking robots it uses in its warehouses. Each machine handles work typically performed by four people …
To food preparation — meatpacking giant Tyson Foods has challenged its engineers to develop an automated deboning system which is speeding the shift from human meat cutters to robotic butchers …
This is exponential progress, accelerated by the coronavirus.
More importantly, this is not a temporary change. It’s a complete redesign of our economy.
Just days ago, Federal Reserve Chairman, Jerome Powell, spoke directly to this point:
I would agree that what this crisis is in the process of doing is it is accelerating a lot of preexisting technological change …
We’re not going back to the same economy.
We’re recovering, but to a different economy, and it will be one that is more leveraged to technology …
I think you’ll see more telework. You’ll see probably the acceleration of automation. All of that was in the process of happening, but you’re going to see much more of it …
***How this translates to your portfolio
When one dollar invested in technology can eventually save, say, ten dollars in payroll expense, it’s obvious why robot-power is replacing people-power.
But what exactly happens to all those payroll-dollars that were saved?
Well, they stay within the business. They translate into greater profits for the companies utilizing the cost-saving technology.
And those greater profits translate into higher stock prices for investors.
The reality is technology promotes a wealth transfer — from the masses, from those who had been employees yet lost their jobs to technology — to a select group of businesses and investors.
Regardless of whether you believe this is fair or morally-just, it’s happening.
You can either adapt … or not.
In terms of adapting, some sectors and companies are in better position to harness technology than others. It’s the distinction between high-tech and low-tech.
Here’s Eric with more:
As a group, low-tech professions and industries are not as adaptable to economic shocks. Additionally, they cannot establish and fortify their competitive advantages as quickly or efficiently as their high-tech counterparts.
A low-tech company operating in the midst of rapid technologic innovation is like a human being swimming in the open ocean.
No matter how well that human might be able to muscle through the giant swells, a cruise ship can do it better … and faster … and more securely — while also serving up chardonnay and sushi …
But integrating new technology is hard work, especially if you’re a big, fat, happy U.S. corporation that has enjoyed decades of success.
Often, the stewards of such corporations fail to recognize the competitive perils they face … and, therefore, fail to adapt quickly enough to save themselves.
Similarly, investors today are at risk of failing to recognize the perils their portfolios face. Not adapting could have dire ramifications.
Tonight’s event is all about how to avoid that outcome, and instead, harness technology to generate lifechanging wealth.
***The Technochasm Summit event begins at 7 PM ET
Now, a quick aside for regular Digest readers who might be wondering something …
Eric’s work on the Technochasm is obvious. We’ve been profiling it for months here in the Digest. But what is Louis’ role in tonight’s Summit?
Well, first, Louis has been following Eric’s work for years and believes in his research.
Second, if there is anyone who knows the power of technology to transform our lives, it’s Louis — a man whose computer-based algorithms have guided his investing decision making for more than 30 years.
In recent quarters, Louis’ system has been identifying more and more technology-based stocks as rooted in fundamental strength. Given this, he’s been positioning his own subscribers in technology, and believes it’s critical for all investors going forward.
So, we wanted to bring both of these veteran investors together tonight to share their insights.
… if you want to learn more about the hidden opportunities and under-utilized strategies that can get you ready to take on (the Technochasm), join me for my next big event … my first ever with legendary investor Louis Navellier.
I should note that, just for joining, you’ll get a free stock recommendation which Eric believes has 1,000% potential upside.
Just click here to register, and we’ll see you this evening.
Technology is transforming our economy, and by extension, our investment markets. Tonight’s event will help put your portfolio on the right side of this sea-change.
Have a good evening,