4 Stocks for Space: Look UP for 2021 Gains
I’m calling it now: 2021 is the year sci-fi becomes reality!
Lunar colonies, space hotels and the rise of commercial space travel are within reach.
SpaceX is already leading the way and has us all looking to the skies. Now, I believe it’s time for you to buy into these innovations.
There are four incredible ETFs — filled with stocks that are critical for space.
You can buy into the new space race right now to gain exposure in the heart of this new industry … before the gains go up, up, UP in 2021:
SpaceX’s Starship SN8 Test – 2021 The Year for Space
For those of you who are space fans, you know we just witnessed a historic moment when SpaceX took its starship SN8, which stands for serial number eight.
It’s an eight-story starship and it has engines that are incredibly powerful. It is designed to take us into outer space and eventually be able to get to Mars, land on Mars and then return. They sent this rocket up as a test. This rocket was supposed to test things that were previously unthinkable in terms of doing.
This huge, massive rocket went up to about 12.5 kilometers and then belly flopped, flew back and attempted to land back from where it took off. While it was not a completely successful mission, it did take off, it did get to 12.5 kilometers, it did belly flop and got back to the landing pad.
However, as Elon Musk said, it did go through an RUD, which is a rapid unscheduled disassembly. In other words, there was a malfunction with an engine. As a result, the rocket did disassemble itself.
My point in bringing this up is that I told you as part of my 2021 predictions that I believe 2021 is the year you are going to see tangible signs of a brand new industry that is going to start forming. It’s going to make things that were previously sci-fi real. Things like lunar colonies, space hotels, space tourism.
And also, the first real sign is this SN8 getting to 12.5 kilometers, belly flopping and being able to come back. It shows the United States now has the technical capability to go to Mars and put our colony on Mars, to plan to live there and make our species interplanetary.
It was Elon Musk’s goal in starting SpaceX. This is about investing, ultimately. I’m a space fan and I love space. I always have. There is something very simple about looking up at the stars. I believe most people are naturally interested in space.
Also, most people naturally think if 2021 is going to be the year where there’s going to be tangible signs of us going into space, are there some ways that we can invest in it. Because as many of you may know, SpaceX is still a private company. It’s valued at $45 billion in the private markets.
Nonetheless, it’s a private company and we are unable to invest in it. Many of the other companies that are bringing up the new wave of space are also mostly private. However, it does mean you can invest in space that’s benefiting from this new wave if you think a little more broadly and think about the critical technologies allowing us to do these incredible things.
If you are tracking what SpaceX is doing or Relativity Space or Rocket Labs or Momentus — these are all new-wave space companies that are really forming the new way we approach space. There are some critical technologies you can invest in that are facilitating this new wave of space, this new industry forming right now.
4 Ways to Invest in Space Technology in 2021
Today I want to tell you four ways you can get in on space technologies. You know I have been telling you for some time that 3D printing is the heart of what is going on today. Digital steel is one thing I talk about and 3D printing is another thing. These two things are very much at the heart of what we are doing with space.
If you look at what SpaceX is doing, they use 3D printing. They use it to make parts and to figure out how big the parts should be and how strong they should be. 3D printing is widely used by all the new-wave space companies. It’s how they are accelerating development, figuring out what materials to use.
So many elements of 3D printing allow new-wave space companies to get to what they need to do and do things today that seem mind blowing and were so difficult to do years ago when we first went to the moon. 3D printing is one way you can get in on this space wave happening now.
- Investing in an ETF: The 3D Printing ETF (BATS: PRNT). This is put out by our friends at ARK Invest. They try to collect all the 3D printing companies from around the world and put them in there.While you are getting wide exposure, for sure there are companies in the PRNT ETF that are participating in this new space wave. That’s the number one way I would tell you. PRNT and 3D printing are one of the ways you can get in. I mentioned digital steel earlier — semiconductors. All the rockets that are going up are filled with sensors and chips. They measure, they monitor, they track. They are communicating in real time to other computers that are in the rockets and spaceships, to various space stations. They communicate information as to what is happening and going on. They communicate with video and all the things are happening through semiconductors. While semiconductors are used for all the other megatrends I keep telling you about — Internet of Things (IoT), artificial intelligence (AI), blockchain — it’s also critical to space.
- Buy into chip companies that you know are being used by all these new-wave space companies. An easy way to get exposure to that is to buy into an ETF. I’ve been recommending this ETF for a long time: VanEck Vectors Semiconductor ETF (Nasdaq: SMH). It has pretty much every semiconductor company, every sensor company and chip company from around the world in it. It’s an easy way to get broad exposure to what I believe is going to be huge industry that is going to end up buying a lot of chips from the companies in this ETF.
- If you think about what it takes to go into space, it’s a lot of information and data. You have to have a lot of things under control. If you ever watch a SpaceX launch, you will see the computers take over the launch at about the one-minute mark. The computers are the ones making the decisions in terms of should we launch, should we abort the launch, what should we do, are all the systems OK — it’s computers doing that. That’s based on chips but also based on accumulated data and forming various algorithms that make those decisions in real time. In other words, it’s all there. If something is going on, if an engine is misfiring or something is in any way wrong, the computer sees it and knows it in real time. It’s able to know the value of that particular piece of data. It fits it against the information that is known and makes a decision in real time. That means cloud computing is a very large part of what is going to be the space economy. One way you can participate by getting broad exposure in these cloud-computing companies is through an ETF: First Trust Cloud Computing ETF (Nasdaq: SKYY). This has a broad exposure to a lot of cloud-computing companies which are similar to big data and AI which is a part of cloud computing and the space economy.
- The fourth one is something the vast majority of people would probably say, “Well, I don’t know,” because most people would never think of it. If you watch what SpaceX is doing, they do a lot of manufacturing out in the open. Go on YouTube and you will see a lot of live cameras focused on the SpaceX campus. It’s in Boca Chica, Texas. They just focus on what looks like an industrial harbor plant. You can see these rockets being made outdoors. People are looking at in real time and everything can be seen. However, when you look at it you should see that the space industry and opportunity is going to run through the industrial sector of our economy. There are many aspects of space that require the industrial economy to fire. Whether it be the use of old manufacturing techniques, combined with 3D printing, AI, sensors and cloud computing or big data — or all these things put together. However, there are many aspects of space that require electrical wiring. Simple things we know how to do, but with space we have to do them very precisely and perfectly. They have to be done in such a way so all systems work perfectly in very foreign environments. This means the industrial companies have to innovate. They have to change and come up with new ways to do things. That is going to create a renaissance in industrial manufacturing in this country. That’s the fourth way to get in on what I believe is a massive monster space opportunity. You can do that by buying into another ETF: Industrial Select Sector SPDR Fund (NYSEArca: XLI). This is the industrials ETF. It gives you broad exposure in the industrial sector. Some of whom are, for sure, participating in the space economy already.
Buy into space through these four technologies and markets: 3D printing, semiconductors, cloud computing and industrials. That way you are starting to get the benefit of what I believe is going to be a massive opportunity that’s going to unfold over the next one, three, five, seven, 15, 20 and even 50 years.
Stay Tuned! I am putting the finishing touches on a brand-new space report. As you know, space is a major America 2.0 mega trend that we’re following in Bold Profits Daily and my flagship publication Profits Unlimited. This new era is not just unfolding … it’s here now.
And I don’t want you to miss out on a single opportunity.
The Fourth Industrial Revolution is creating what I believe will be a Main Street bull market. As soon as I finalize this space report, I want you to be one of the first to see it.
But until then, check out how you can start investing in America 2.0 today. It’s going to be a strategy we carry out through 2021 because I believe it’s the best way we can make potentially HUGE gains for years to come.
Editor, Profits Unlimited