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#A20 Disruption for Dow 100K

#A20 Disruption for Dow 100K

The Dow is turning 126 next month.

And the companies … well they are showing their age.

In order for the Dow to hit our 100K target, it needs an America 2.0 (#A20) disruption from ARK Innovation ETF (ARKK) stocks like:

  • Tesla.
  • Teladoc.
  • Zoom.

If I could, I would take advantage of the low prices and buy America 2.0 stocks. But, we reserve those recommendations only for you.

So I’m buying the #A20 exchange-traded funds (ETFs):

Now, if you want the stock recommendations and Dow 100K forecast — click here for the full story.

Then come back and watch Market Talk to see how innovation is exactly what we need for Dow 100K and our stocks to soar + three ETFs to buy:

 

Amber Lancaster: Hello and welcome to Market Talk Monday on the Paul Mampilly YouTube channel, the home of Bold Profits Strong Hands Nation. I am Amber Lancaster. Thank you for tuning in this week. Next month marks the 126-year anniversary of the Dow Jones Industrial Average (DJIA) as we know it.

On May 26, 1896, Charles Dow launched the DJIA. It has become one of the world’s most cited stock indices in history,

30 stocks

but its 30 tracked stocks are considered by many analysts as an inadequate representation of the overall stock market.

Known for its stability, the number of stocks replaced in the Dow can, at times, be very few and far between.

Bar chart

However, here at Bold Profits we believe the Dow is due for a shakeup. It will inevitably be infused with America 2.0 stocks that will help the index soar to 100,000.

In this video, Patrick Goodrich — investment analyst at Bold Profits — is joining me to share exactly how America 2.0 stocks represented in the ARK Innovation ETF (ARKK) will help push the Dow to 100,000. Plus, Patrick will reveal three ETFs to buy today at discounted prices.

With that, hello Patrick. Great to see you on this lovely spring morning. How are you today?

Patrick Goodrich: I’m doing well, Amber. Thanks for having me on.

 

What Stocks Will Help ARKK Push The Dow to 100,000?

Amber: Always good to have Patrick on and get his perspective. Patrick, I have a few questions for you today. I was just talking about how the Dow has been here for 126 years and it’s due for an America 2.0 shakeup.

My first question to you is can you please explain exactly what America 2.0 stocks, in particular, stocks in ARKK can help push the Dow to 100,000?

Patrick: In my most recent article I wrote I go into a law that’s called Wright’s Law. It was created by Theodore Wright in 1936. He was studying airplane manufacturing at the time. It was new technology and he discovered that with every doubling of airplane manufacturing, labor costs for manufacturing goes down by 10-15% over time.

If you translate that to today, in particular with Tesla and electric vehicles (EVs), you can use the same law and extrapolate the cost of lithium ion batteries is declining at a similar cost reduction over time.

Battery Cost Graph

In 2005 it was $300 per kWh and now it’s about $100 per kWh.

That’s about a 70% reduction. Over time it’s going to continue to decline. The reason that’s important and is going to lead to some of ARKK’s stocks going into the Dow is because a lot of traditional finance stocks that are in the Dow are not growing as fast.

They have bloated costs. They are expensive to run. Companies like Tesla that run more efficiently and have lower costs are going to see more adoption and more demand for their technology. Ultimately, companies like Chevron that are in the Dow are going to be replaced with Tesla.

 

Three ETFs That Are A Great Buy!

Amber: That’s a great explanation of Wright’s Law. Thanks for that. With that, I have a follow-up question. With technology’s cost reduced, it will be more adoptable by the masses.

Could you share three ETFs that you see could be a great buy for today, especially in this current environment where prices are discounted and we can start buying things and make a profit going forward?

Patrick: Absolutely. ARKF, which is the ARK Fintech ETF. I like PRNT, which is the 3D printing ETF. Then ARKG, the ARK genomic revolution ETF. I think, despite the fact they’ve been discounted significantly, looking out I think they have great sales growth and great potential.

I think now is a good time to invest in those.

 

Where Is ARKK Headed?

Amber: I concur. Good call on those three. Patrick, for ARKK, I have Dan on on occasion. He has his particular forecast for ARKK. Can you share what yours is as far as price is concerned?

Patrick: I believe in the next three to five years ARKK will go to $200. The reason being is, I took the top 10 holdings of ARKK and compared them to the top 10 holdings in the Dow.

ARKK vs Dow

I had some remarkable insights in that. The top 10 sales growth extrapolated out five years is 22% in ARKK.

But in the Dow it’s only 7%. I think that’s remarkable. I’d rather be in ARKK which has stocks that are poised to grow even more than the Dow. That’s why I think from here to five years out the stock could jump to $200 from about $65 where it is now.

That’s why I think $200 is a good point, but it could go even higher, especially if it starts to price in more of what’s happening in 2026 and 2027, etc.

Amber: I really like how you’ve done that comparison between ARKK and the Dow and extrapolated where it can go. I appreciate you sharing that with us. Patrick, thank you for being here today. Appreciate you.

Patrick: I appreciate being on. Thank you very much, Amber.

Amber: Thank you again to Patrick for joining us today. Great information that he shares. I really enjoy hearing from him. As a recap, to America 2.0ize your investment portfolio, consider adding ARKF, PRNT and ARKG to that portfolio.

Also, if you’d like to get access to specific stock recommendations focused on tomorrow’s innovations, please check out Paul’s stock research service Profits Unlimited. In this newsletter, Paul has a history of making big calls on stocks focused on his specific list of megatrends like robotics, AI, millennials.

These recommendations have earned Profits Unlimited closed gains of as much as 736% on STMicroelectronics, 714% on Advanced Micro Devices and 244% on Lululemon. To learn more about Profits Unlimited, click the strong hands to get all the details.

With that, thank you for tuning in. You can follow Paul, Patrick and me on Twitter: @MampillyGuru, @PGoodrich6 and @ALancasterGuru. Have a great week ahead. Take care.

 

Regards,

Paul Mampilly

Paul Mampilly

Editor, Profits Unlimited

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