3 Disruptive Industries to Win Strong Hands Market
Your Strong Hands have been tested over the last two weeks.
I want you to know that this kind of market activity is normal after nearly a year-long rally for tech stocks.
But I’ve got my eyes facing forward, and here’s what I see: disruptification.
You might know every stock pick we recommend is exclusively focused on that. Disruptive, futuristic themes that will completely reshape our world.
Because that’s where we think you can make the biggest money in the stock market. And right now, I believe it’s just getting started…
I’m looking at three industries that will come out on top of this Strong Hands market.
These three mega trends have the potential to be the key disruptive stocks for your America 2.0 portfolio:
Big Money Managers Are Cashing In Profits
If you go back and look over the last year what you will see is that we had a stock market crash in March 2020. Since then, the stock market has gone up in almost uninterrupted fashion for almost a year.
The stocks that have gone up the most are our stocks — America 2.0 stocks, Fourth Industrial Revolution stocks, futuristic theme stocks we focus on. They are referred to as growth stocks or momentum stocks. Those are the stocks that have gone up the most.
What I believe has happened is big money managers that have a lot of profits in this have decided they want to sell and cash in on some of their profits. They are taking large blocks to sell. However, in my judgment, they are also keeping large blocks of it. They are just cashing out on part of their stakes.
What happens in the stock market is if someone wants immediate liquidity, let’s say they want to sell $100 million all at once. There is no market for that stock at the high price. You are going to take a price haircut to be able to sell that stock and get cash in return. We’ve seen that happen over the last couple of weeks.
People have come in and wanted to sell stocks and cash in on profits. However, I believe it’s temporary and will ultimately fade. I believe we are still very early in terms of America 2.0 and the Fourth Industrial Revolution, the digitization of society. We are very early in that sphere.
That means if you look out one year, three years, seven years out, these companies are going to have rising sales and profits. That is going to drive enormous demand for these stocks, which is going to make people come and bid it higher.
Going through a correction, a reaction, a fluctuation — whatever you want to call it — is always difficult, especially for folks who got in somewhere near the top. That means you need to wait before you can see a profit in your account. The bottom line to this is I believe it’s temporary and will pass.
Ultimately, the future, the present all lies through these same set of companies that are solving problems and creating new ways of doing things. That is very much about America 2.0, Fourth Industrial Revolution and the future and these megatrends.
AI and Vertical Farming Trends
Over the last year we have seen the emergence of many companies that are involved in vertical farming. We are starting to build farms in cities in buildings with optimized water conditions, temperature conditions. It turns out we can grow plants and food much faster and efficiently than the way we are currently doing it, which is in fields.
Or, the emergence of a massive development which will have a huge impact on us: artificial intelligence. There are companies that are coming public right now that are involved in AI that I believe will wipe out what today we call operating systems and software.
In hindsight it will seem limited. Just like we talk about smartphones, in time we will talk about that software as being unsmart or dumb software and the new software embedded with AI as being one that is smart software. It incorporates your own usage, data and information to automate what you do all the time.
AI is going to be a huge winner in the next one, three, five years. Very recently I just sent a trade out to Profits Unlimited subscribers telling to buy into the company that I believe is going to lead the AI revolution in terms of the actual software itself.
We told people to start buy it and we are preparing a report to show people why that is going to be the case.
I apologize, in the interest of fairness, I have to save that trade for our subscribers. However, I am happy to tell you about the emergence of these companies and why they are going to be important. Equally, they are going to displace companies today that are very large.
A good example of this is Microsoft. Microsoft makes the most dominate piece of software that is used by people around the world. It is a great example of a piece of software that, by the measure of AI, requires a lot of energy to do that same things all the time we already do.
If it were capable of observing itself in terms of what you are always doing and automate it, that would make it much smarter. Microsoft is setting itself to be disurptified by AI. There any number of companies like that as well that are involved in this kind of software and activity that will struggle as a result as well.
So we have AI, vertical farming and if you go to Market Talk on Monday, Amber talked about urban aviation and the arrival of all these new forms of travel that will revolutionize our world. There are companies that will use drones to transport people and goods.
At first it will be short distance, perhaps a few hundred miles. Then it will be larger. It is going to completely disruptify our existing transportation system. There will be much less use for airlines, railways — a lot of America 1.0 companies.
So those are three example of where I believe the market is actually going over the next one, three, five years: AI, vertical farming, urban aviation through the use of drones and new aircrafts like eVTOL.
Interest Rates Won’t Change Anything
The last thing I said I would cover is what is going to make people want to come and start to buy these stocks. Many people are writing me and saying interest rates are high or rising and people no longer desire these stocks. I disagree. From my perspective, nothing has changed.
Interest rates are still at historical lows. There is very little inflation. There are price increases, but that is a natural phenomenon of shutting down the world for nearly one year. As the world opens back up again, there are going to be adjustments in price to normalize flows between lots of different industries.
However, that is different than systemic inflation, which is something we experienced in the 1970s. So the underlying conditions are good. In 2021, we are going to have massive economic growth all around the world as a result of economies around the world restarting themselves.
The last reason is that if you think about the next person entering the stock market today, it’s a young person. It’s someone who belongs to the millennial generation, it’s somebody who belongs to gen z. In truth, there are now many teenagers and high schoolers in the market.
They are learning about the stock market, learning how to invest and learning how to trade. There are a lot of new people who are entering the market. The kinds of stocks I believe they are going to buy are the stocks that reflect life today and where it is going.
In other words, all the things that reflect America 2.0 and the Fourth Industrial Revolution, which is once again what we exclusively laser focus on in our services. If you are interested in getting started with that, the best place is Profits Unlimited.
Editor, Profits Unlimited