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2020: Year of Transformation. Plus, What to Buy TODAY…

2020: Year of Transformation. Plus, What to Buy TODAY…

2020 has brought mass change … but it’s not simply a year of transition … it’s a full-on transformation.

Right now, I predict three new trends will emerge and lead America 2.0 stocks to incredible new market highs.

We’re calling them the “three Rs.”

In this week’s Market Talk we’ll show you what’s driving America 2.0’s transformation and the specific actions you can take today to profit … including today’s pick in an incredible new energy revolution unfolding now.

Check out this week’s Market Talk below and find out how you can invest in America 2.0 today:

Welcome to Market Talk.

3 Economic Effects Spurring Market Recovery

As local economies re-open, we will have to repurchase all the items that we’ve used during this pandemic. For example, I don’t know about you, but I’m a big fan of Clorox Disinfecting Wipes & it has been a bear trying to find and buy this product at local stores or even online in recent months. They were once plentiful, filling store shelves, now, at least for me, they are nowhere to be found. So, they are at the very top of my household repurchase list.

Then we’ll be required to make items to meet current and future demand.  This demand, which is going to be greater as we get out and go back to normal day-to-day activities and will be higher than what it was when we were sheltering in place.

Finally, restocking, or as Paul phrased, re-inventorying of the world just based on the America 1.0 economic concept, which most relies on just-in-time inventory. Just in time inventory, as presented in this illustration, is when a company keeps only as much inventory as it needs during the production process-based on customer orders. It’s important to note this type of inventory is no longer a realistic proposition under current conditions.

Just in Time Inventory Graphic

Also, Paul noted, “We understand that … a pandemic can happen and we need to have stores of inventory on hand so we can deal with it. Then the re-industrialization and restoring of our country takes place. All of which means the level of economic activity is going to be significantly higher than what we have experienced any time recently.

“…it’s almost like we closed a curtain on one version of the world when the pandemic was beginning. As we come out of it, it’s definitely a slope up.”

A great representation of this potential upward slope is seen in the Nasdaq.  If you’re looking for an America 2.0 Index, look no further than the NASDAQ — an America 2.0 index.

NASDAQ Room to Grow July 2020

And as seen in this comparison chart, technology stocks in the Nasdaq have Room to Grow. This chart shows the Nasdaq-100 is nowhere near the 1990s stock surge & can rocket higher. The index surged 929% in five years up to its March 2000 peak.

The five years ended this past Thursday, up 147%. As you can see in the greet dotted double arrow line on the right of the chart that’s the gap or distance between these gains which tells us tech has a great potential for room to grow.

Paul concludes, “This is why the markets are so strong. This is why there is such a strong bid under so many stocks. It’s also why there is such a strong bid especially in America 2.0 stocks. The demand is going to be skyrocketing; whether it be electric trucks, electric cars or new energy stocks.”

2020: The Year of New Energy & EV Transformation

The global renewable energy market was valued at $928B in 2017 & is expected to reach $1.5B by 2025.  New energy also known as renewable energy comes in multiple forms. Here are the top 7 for 2020.

Renewable Energy Chart 2020

They are solar, wind, hydrogen, ocean, hydro, geothermal and bio energy. All 7 energy sources offer great investment opportunities for 2020 and beyond.

Take solar for instance, this Bloomberg New energy Finance or NEF chart shows how residential solar system avg. pricing & costs from California to Australia has steadily declined, thereby helping more homeowners around the world find local installers with competitive pricing thus boosting the home solar panel and roof system boom.

Residential Solar Cost July 2020

Plus, the phenomenon known as the mini-grid sector has historically been dominated by diesel and hydro power, but not any more.  Minigrids as seen in this illustration, supply power to rural areas in emerging countries.

Solar Mini Grid July 2020

Minigrids have seen a shift and surge toward solar minigrids.  As this Technology share of operational mini-grids chart shows, per BloombergNEF “some 55% of operating mini-grids incorporated solar technology at the end of 2019 – a more than fivefold increase from 10% in 2009.”  This is big new energy transformation news.

Technology share of Operation Minigrids 2020

And lastly on the battery electric vehicle or BEV front also per Bloomberg, Battery metals are back in the spotlight, amid angst over the pandemic disrupting supplies and signs of an electric-vehicle demand recovery.

BloombergNEF has “raised its 2020 passenger EV sales forecast 16% to 1.97Munits & now sees a potential deficit across battery metals in the second half of 2020. Tesla overtook Toyota as the world’s most valuable automaker, after Q2 deliveries boosted expectations for its electric-car sales. European stimulus spending has focused on green projects, including support for EV makers and charging infrastructure.”

Dutch Electric vehicle Sales 2020

And to put the EV revolution demand in perspective look no further than the Netherlands, as reported by the next web: In just eight days, the Dutch have used up $11.3M worth of subsidies to support the purchase of new EVs.  “The subsidy was announced back in Feb. of this year but came into effect on July 1. While it took 8 days for the whole budget to be used up, 44% of it had been requested by noon on the very first day the subsidy was available.” This attests to the popularity of EVs.

As you can see the technology transformation in the Electric and New Energy market is astounding.

New Energy Transformation ETF Pick july 2020

And if you’re looking for an all-encompassing exchange traded fund or ETF to play this market, consider buying the ALPS Clean Energy ETF, ticker ACES.  This ETF invests in companies that provide the products & services which enable the evolution of a more sustainable energy sector.

Regards,

Paul Mampilly

Paul Mampilly

Editor, Profits Unlimited

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