During periods of elevated market volatility — like the one happening right now — I like to do one thing. Focus on the big picture.
It’s nearly impossible to predict what will happen over the short term with any great certainty. Inflation could keep rising. Or it may start decelerating. The Federal Reserve may hike rates. Or it could make a U-turn in the summer. Russia might try to invade mainland Europe. Or it may stop the fighting altogether.
There’s a lot of uncertainty out there right now. So, instead of trying to predict how all those risk factors will play out, let’s do something much easier. Let’s take a deep breath, zoom out and look at the big picture. And let’s realize that while today’s macroeconomic and geopolitical risks may seem like world-enders, they’re not.
The world — the U.S. economy included — has a multi-century track record of trumping crisis after crisis. Think of COVID-19, the 2008 financial crisis, the dot-com crash, innumerable wars and natural disasters.
That’s the big picture.
Keep that in mind while stocks throw a temper tantrum here. And in so doing, you’ll realize that you should simply be focusing on the long-term technological trends reshaping our world.
I’m talking artificial intelligence, electric vehicles, digital advertising and shopping, robotics, and more. Those trends won’t be derailed or even slowed much by what’s going on in the market today.
Indeed, computers weren’t stopped by Black Monday. The internet wasn’t stopped by the dot-com crash. The 2008 financial crisis didn’t stop cloud computing, either.
Ultimately, world-changing megatrends always end up changing the world — regardless of what happens in the near-term. It’s best to ignore the noise and hold your focus on the best of them.
And the best such megatrend is the Forever Battery Gold Rush.
Batteries Are Everything These Days
When you sit back and think about it, nearly every technological megatrend out there requires batteries to power it.
Electric vehicles run on lithium-ion batteries.
And so do energy storage systems (ESS).
Artificial intelligence? It’s built on software that’s run on computers, which are powered by — you guessed it — batteries.
How about smartphones, VR headsets or charging stations? All those end markets need batteries, too.
Morgan Stanley (NYSE:MS) aptly summed it up in a research note just a few weeks back, saying:
“We need batteries. Literally everywhere.”
It wrote to illustrate that over the next decade, we’ll see a huge battery infrastructure spending boom to produce enough batteries to power the world’s tech megatrends.
We couldn’t agree more with that thesis.
Batteries will be at the center of our tech-dominated future. Demand will increase at exponential rates in the 2020s. But there’s not an infinite supply of batteries. If anything, we have a supply shortage. Therefore, there will be a battery spending boom over the next decade. And companies all along the battery manufacturing supply chain will make a lot of money.
It will be a “Battery Gold Rush.”
And we have a $1 stock to play this decade-long megatrend.
The “Forever Battery” Is the Holy Grail of This Gold Rush
The “holy grail” of the coming Battery Gold Rush will be a special type of battery — the “forever battery.” And it’s going to change the world as we know it.
To understand why, we’ll take a quick trip back to chemistry class.
Batteries comprise three things — a cathode, an anode and an electrolyte. They work by promoting the flow of ions between the cathode and anode through the electrolyte.
Conventional lithium-ion batteries are built on liquid battery chemistry. That is, they comprise a solid cathode and anode, with a liquid electrolyte solution connecting the two.
These batteries have worked wonders for years. But due to liquid electrolytes’ physical constraints, they’re now reaching their limit in terms of energy density. If we want our phones, watches and EVs to last longer and charge faster, we need a fundamentally different battery.
With these batteries, the name pretty much says it all. Take the liquid electrolyte solution in conventional batteries. Compress it into a solid. Create a small, hyper-compact solid battery that, since it has zero wasted space, lasts far longer and charges far faster.
Of course, the implications of solid-state battery chemistry are huge.
Solid-state batteries could allow our phones to sustain power for days or enable our smartwatches to fully charge in seconds. And they could even be the key that allows EVs to drive for thousands of miles without needing to recharge.
That’s why solid-states are dubbed by insiders as the “forever battery.” And it’s why these forever batteries are the holy grail of the Battery Gold Rush.
The Final Word on the Forever Battery Gold Rush
Companies using the best batteries will gain huge competitive advantages in the 2020s. The better the battery, the better the performance of an EV, phone, ESS, etc.
There won’t be any rush for old-school batteries built on obsolete tech. But there will be an unprecedented mad dash for the best forever battery.
This was always going to happen. But recent developments — specifically, the Russia-Ukraine war’s unearthing of fossil fuels’ supply and price fragility — have accelerated it.
The Battery Gold Rush isn’t something that will happen in two, three, or five years. It’s happening right now. And it will change the global economy over the next 12 months.
At the epicenter of this gold rush is the forever battery. Though you might be familiar with some solid-state makers, like QuantumScape (NYSE:QS), you probably don’t know the name of potentially the most explosive pick in this sector…
I’m talking about a tiny, completely unheard-of $1 stock.
Less than $1… and this company could change the world over the next decade.
The upside potential in this tiny stock is enormous. In fact, it’s so big that unlike QuantumScape, I can’t write its name in this post.
But I did just give a presentation to a group of 60 at the landmark Hudson Theater in Southern California. And I talked all about this tiny tech stock.
And now I’ll spill the beans on the small $1 stock powering the biggest technological revolution of our lifetimes.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.