“Digital New Deal” Unleashed: Invest TODAY
President Biden just accelerated the Fourth Industrial Revolution.
His $2 trillion infrastructure plan reminds me of the New Deal. Except now … it’s the “Digital New Deal.”
And that’s great for our America 2.0 mega trends and stocks! Think about it:
- Internet-connected pipes.
- Better roads for connected autonomous cars.
- Secure records of ownership.
That takes: artificial intelligence, the Internet of Things, semiconductors, blockchain, new energy and much more.
These mega trends are exactly what we need to set America 2.0 on the path for the Fourth Industrial Revolution — the most profitable era we’ll ever see.
Check out today’s Market Talk to find out how you can invest in these mega trends TODAY, plus answers to your market questions:
What Biden’s ‘American Jobs Plan’ Means for America 2.0 Stocks
Amber Lancaster: Today, Paul is joining us to give his take on President Biden’s $2 trillion infrastructure spending plan, officially known as the American Jobs Plan and what it may mean for our America 2.0 stocks. Plus, he’ll answer some great questions we received via our Bold Profits email inbox and Twitter.
Plus, I’ll share how you can play the America 2.0 boom with Paul’s Extreme Fortunes stock trading service that aims to capture gains of as much as 1,000% in our America 2.0 megatrends like the Internet of Things, artificial intelligence and new energy by investing in small-cap companies before they take off.
First off, we have several questions across a few categories. The first category is about infrastructure and the Biden infrastructure spending plan.
$650 billion will be allocated to infrastructure at home, which just means electric infrastructure, high-speed broadband, etc. $621 billion is for the transportation infrastructure, which is right up our alley here. With $174 billion going toward electric vehicles.
The last two allocations are $582 billion for research and development, as well as workforce development and manufacturing. That plays into the Three R’s forecast for you, Paul. And $400 billion for the caretaking economy because our most valued citizens are our elderly.
So it’s money allocated for our elderly as well as disabled people. That’s how it lays out for now before it goes through any changes.
Paul: For those of you who are unaware, The New Deal is what President Roosevelt introduced into the Great Depression. It built America in the model of the Industrial Revolution.
It’s what built the roads and created the infrastructure for the booms that then followed. I believe this is the digital New Deal. This is the Fourth Industrial Revolution New Deal. This is the America 2.0 New Deal. When I look at it, people will say “Tell me how $111 billion on clean drinking water have anything to do with Fourth Industrial Revolution or America 2.0?”
One of the things that we have been telling you is that the Internet of Things means you can have internet-connected pipes. In other words, sensors in every part and all the pumps. It means you can now use AI to determine how much water is needed where.
It’s a much more efficient allocation of the natural resource. It’s much easier maintenance of the infrastructure, so it means you have fewer water main breaks. If you lived in New York or any city they always happen. Imagine if you could anticipate any of that and address it before it happens.
For that, however, you have to have upgraded digital infrastructure in place. Of course as they go to put in new infrastructure they are not going to put old fashioned pipes, they are going to put new digital infrastructure in place. You can use that same way of thinking, whether it be for broadband or electrical infrastructure or housing, transportation or bridges.
The new infrastructure that is going to be put in as a result of this plan is going to be digital. It’s going to be associated with the Fourth Industrial Revolution. It’s going to pave the way for us to be able to do so many things more easily. One of the things many people are interested in are connected cars.
We need slightly better upgraded roads. I know for myself, my most nervous times when I am in my Tesla on Autopilot is when the lines are poorly drawn. Now the car skitters around because it’s unclear which lines to follow because the cameras and the sensors work together to try to determined based on the information it’s getting.
A lot of the new infrastructure that President Biden has announced — and I know it’s going to change. Nonetheless, the basic direction is a good one. The basic direction is something that’s going to make us into a society that’s upgraded for where we are going and where other parts of our society are.
We can use a smartphone and get all kinds of things, information and data. We need to have that for our entire world — our public infrastructure, our private infrastructure, our homes. This spending will help facilitate it. I know many people will be aghast.
“Oh my god, Paul, public spending means debt. There’s going to be massive inflation.” I disagree. I believe this spending is needed. It’s actually been something like 30 or 40 years in the making. Pretty much every administration I can remember since Bill Clinton on has promised an infrastructure rebuild.
We could never get it together as a country to actually agree on the priorities, where we should spend it and how we should spend it. Now, there’s a really good reason to spend it. The reason to spend it are our megatrends we have been invested in a Bold Profits for nearly five years.
Internet of Things? You bet. Every single aspect of this infrastructure plan means a ton of new chips will go into place. You are going to have a ton of servers. You are going to have to have a huge amount of digital infrastructure to support all this. That’s the Internet of Things.
Artificial intelligence. All that data is eventually going to be parsed and made into information. That’s artificial intelligence. All of these assets will be tagged. How will they be tagged? Blockchain, because that is the technology of our time to determine ownership.
You can see while many people object and may disbelieve in it, I believe this is an investment that is worthwhile. It’s an investment in us and our future. I believe it will set us up, just like the New Deal in the past, for prosperity and boom.
And there will always be waste in government spending. There is waste in everything in truth. However, I believe the vast majority of it is going to help us become more productive, more useful and genuinely give us more of what we want in our lives, which I believe is happiness, joy and pleasure.
So that’s my take on the infrastructure plan. When I heard about it I thought it was exactly what we need at the right time to do it. I believe it’s going to be a good thing. I believe all the companies involved in this are going to benefit from this.
As a result, you know what the usual thing is: People will seeing this will say, “I wonder who is going to benefit?” They will start to work it out, they will start to bring their money and start to bid our companies higher.
I am bullish, optimistic, positive — BOP — on this infrastructure plan and what it means for the Fourth Industrial Revolution in the United States of America and for America 2.0.
Amber: Well said, Paul. We have some questions that came in through our mailbag. You answered quite well the first couple of questions we received from Byron, who is a subscriber, and Gail.
They had similar questions about which megatrends in our portfolios would respond positively to this plan. I believe you have already touched on it.
Which Megatrends Will Benefit from Biden’s Infrastructure Plan?
Paul: The megatrends are going to be Internet of Things in a very big, meaningful and visible way. You are going to see pretty much all infrastructure get connected to the internet. The benefits of that are huge: lower maintenance, lower expenses, less work and more productivity.
The utilization of the Internet of Things very rapidly leads to artificial intelligence. Those are the most obvious places. However, any of these kinds of investments are going to allow for more productivity and efficiency. That means we can then start to transition away from carbon-based energy to new energy.
We can start to implement the promise of precision medicine, which is in its very early stage. People say it’s a huge cost. The truth is, you have to invest to get something. The benefits of doing anything only come after you invest in it. So once we make these investments we will start to save money as a result of having spent the money upfront.
Now we will be able to take all the excess productivity we get from it, all the excess efficiency, and start to put it into our healthcare system where we spent a massive amount of money yet don’t have better healthcare than other countries that spent less.
This is going to create the impetus and resources to transition to new energy, precision medicine and give us extra resources to spend on new industries that are going to require a lot of resources. Like space for example. It’s going to affect all the things we are generally already invested in.
It will also bring to bear new technologies we are invested in. We are going to use 3D printing. We are going to use photonics. We are going to use all the things we tell you about week after week in Profits Unlimited. I am very BOP on this plan and what it means for our stocks, our country and our economy.
How to Research Cryptos to Invest In
Amber: I’d like to switch gears toward cryptocurrencies. Chris K. is wondering how to research a crypto to know exactly what it is or does, what its market cap is, and if they can be owned without a digital wallet?
Paul: The last question is easy. You can’t own a crypto without a digital wallet. In Profits Unlimited, which is our flagship service — there will be a link for it. That’s just a quick plug for Profits Unlimited. In this service we guide people to use the easiest two services, in our experience, to us: Robinhood and Coinbase.
I understand Venmo and PayPal are going to offer or have begun to offer it as well. They make it easy so you have no idea what kind of wallet you are using. You just buy it and they store it for you. The CashApp does that as well, but only for Bitcoin (BTC).
So you kinda have to have a digital wallet to own a crypto. You can own tracking stocks. We own tracking stocks in Profits Unlimited for BTC and Ethereum (ETH), but they have their own issues, which Amber and I are all too familiar with. If you are in Profits Unlimited, you are familiar.
Sometimes they don’t track the underlying crypto in real time. They trade at a discount or a premium. They are not available everywhere. So those are problems with tracking stocks. Yes, thus far, we have no BTC ETF in the U.S. There is one in Canada. There is no ETH ETF in the U.S.
These tracker are all that are available. With respect to what a crypto goes, you can simply use google and type in the name of the crypto. Any good crypto is usually based on a white paper which lays out ifs technical specifications and what they are trying to do.
The market capitalization of a crypto is usually available quite easily. You can go to a website called CoinMarketCap.com. They are the place I used to track the market cap of these cryptos. Hopefully that gives you the answers to those questions.
Amber: We have one other question on crypto. It’s actually regarding non-fungible tokens (NFT). Kyle from Allen, TX, wants to know why NFTs have become so popular all of a sudden.
“Is there a realistic way to profit from them other than selling a silly meme for millions of dollars? I know this is somehow connected to the decentralization trends that we have seen with cryptocurrencies, but from what I have seen, NFTs simply seem to be used to build brand loyalty and for a rewards program for loyal fans and followers.”
Are we BOP on NFTs, Paul?
Paul: NFTs are something that are an application to crypto to art and things that have a scarcity value based on ownership. If you think about it, in the past if you owned a very rare painting or baseball card, there was no way to guarantee you had the only one.
Using crypto and blockchain you can actually put an identifier on it that makes it super unique. Now if you buy it you know with no uncertainty. That’s one of the things that’s now being used. It’s an application of crypto and decentralized finance (DeFi) to use this for art or things where scarcity is the basis of its value.
If you apply crypto to these things, you can take away some of the doubt and uncertainty. That’s the application. As to whether or not this is going to dominate the world of crypto, I believe a good way of thinking about this is the size of the art world within the economy is somewhat small.
Cryptos will probably expand the value of art because some art is destroyed by plagiarism, copying or faking. However, the mapping of NFTs will assign itself around what the analog has with art and objects of scarcity. There are a number of platforms that are solely dedicated to NFTs.
I’m certain some number of them will do well. No different than the art world that is dominated Tiffany and Sotheby’s. I’m certain in the crypto world over the next three, five or seven years, one or two of these platforms will end up dominating and getting all the volume.
The folks making NFTs will start to sell it on those platforms and they will do well. However, it’s a piece of the crypto and DeFi world rather than something that is all encompassing of it. Just simply a piece of it.
Do We Recommend Wind Energy ETF FAN?
Amber: Moving on to our next set of questions we will talk about new energy. We have talked a little about new energy as one of our megatrends today. Jesse B. is a subscriber to Profits Unlimited and is very happy and grateful for the service that you provide. Jesse is wondering whether you have an opinion on the wind energy ETF FAN?
Paul: We had the Invesco Solar ETF TAN. It had wind aspects and batteries. We had it as part of our STIXX ETF. However, for some period of time we saw this part of the stock market price in a lot of excitement and a lot of good news that was both ahead of the technology and ahead of the business they actually had.
We terminated STIXX earlier this year. I believe we are going to go through a process where some of the people who bought enthusiastically and very enthusiastic prices will need to get washed out of it. They are going to represent excess supply.
Every time they go to sell, the buyers are going to step away. It’s going to be hard to get a price rise from these stocks. We are going to watch and wait and determine good points for us to add more new energy stocks to our various services.
For now I am watching and waiting to see some of that enthusiasm premium that can come into ideas all at once because people get excited and forget these stocks still have to represent businesses and still have to get the next buyer to come in who wants to pay a higher price.
Generally speaking, that’s because there’s something that tells that buyer there is a sustainable business that can grow. I am still BOP on new energy. Nonetheless, there are always waves of movements in all of these megatrends. There are moments where you want to buy more and moments when you want to take your time and watch.
I believe for right now we are just going to watch and see if some of the more enthusiastic buyers have sold out before coming back in so we are positioned to get gains.
Amber: Paul, Blue Water from Twitter wants to know your thoughts on the ESG (Environmental, Social and Corporate Governance) score that companies are now using that will impact our investments. Do you have an opinion on ESG?
Paul: ESG is something that’s been in development for 20 years now. Many people may only be hearing about, but I can remember when I was managing money this question started to come at us. In truth, ESG today is a little bit like normal investing.
At one point in time investing in new energy, which was called alternative energy or sustainable energy, was considered ESG. Today it’s considered regular investing or common sense investing. In other words, you invest alongside with your values, your principles or beliefs of the world you want to live in.
I believe, generally speaking, that’s something we naturally do in Profits Unlimited and have done from the beginning. There is a term for it because the big money managers like Blackrock and others have very large investments in legacy technologies, companies and carbon-based industries.
For them, this is something that they would need to pay attention to. From our perspective, ESG is another way of saying Fourth Industrial Revolution, America 2.0. These are all the same places, companies, industries and sectors we are already invested in.
For us, it’s a net positive if the rest of the world goes to ESG because it’s another way of getting people to invest in America 2.0.
How Much Should I Invest in Stocks?
Amber: Great. Our next set of questions are on investing in general. Lewis is a new investor and wants to know what is the least amount of money he should consider investing in recommended stocks?
Paul: There is no least amount of money. Let’s say we are taking the Profits Unlimited portfolio. There are 37 stocks in the portfolio when I last checked. You mentioned Extreme Fortunes, which is our small-cap service. We look to buy companies that are $5 billion and under.
These are small companies relative to a world where Apple is a $2 trillion company. In that portfolio, we have something like 40 or 42 companies. You could start something with as little as $100 per company. We of course recommend that people follow Rules of the Game and equal weight.
One thing that is 100% guaranteed is that stocks are going to be volatile. You need a portfolio. It’s important that however small you start, you still have to aspire to build a portfolio. Otherwise, you are going to get shaken out. There’s going to be volatility. We had a March crash.
We just had a reaction, correction, whatever you want to call it, that freaked a lot of people out who thought stock markets were just going to keep rising relentlessly. That is never going to happen.
Even in an extraordinary bull market like what we are in for in Fourth Industrial Revolution and America 2.0 stocks there are still going to be moments when there are more sellers than buyers. When that happens, you are going to see prices get bid down.
What happens into any of these moments is that the buyers step away. When they see masses of selling and a lot of stock put up for sale, they are not stupid. They know prices are going to be going down. They are going to wait until prices are cheaper.
Then when the selling is done, the buyers test the market and come back in. You want to position yourself to actually succeed. For that, you need a portfolio. Whether you start with $50 or $100, your goal should be to implement our Rules of the Game and own a portfolio so you can get the benefit.
In Extreme Fortunes, which is the service you mentioned, you can try to actually get that 1,000%. We had Plug Power, which is a new energy stock, we made the 1,000%. I believe our recorded gain was 1,100%. However, in between, Plug Power crashed multiple times by 20%, 30%, maybe even once by 50%.
In other words, if you only held one stock and it wasn’t Plug Power, you ended up missing out. If you held Plug Power as one or two stocks and panicked because of price, you missed out. By building a portfolio, it allows you to endure through these volatile movements where you can get the benefit of a 1,000% move.
So that’s a long answer to a short question. You can start with any amount of money today. Commissions are free. It’s never been easier to open an account. There are no account minimums. I think Robinhood as no account minimum. I would tell you the goal should be to build a portfolio to get the benefit of being in those stocks that can change your life.
Does Paul Ever Recommend UK Stocks?
Amber: We have Chris, a follower from Europe, who asks:
“What do you feel are the prospects for the EU and UK based companies over the next six to 12 months?”
Paul: I would love to give opinions on all these things but I have to be truthful, we focus nearly 99% on U.S. companies. That’s our focus. I am certain there are better channels who are much more focused and much better informed that would give you a better answer.
I believe rather than give you an unresearched, uneducated opinion is to tell you what we are good at is growth stocks, the U.S. market, Fourth Industrial Revolution — that’s who we make our stuff for and that’s where we offer you the best of us. Rather than try to answer a question I know something about, but would be an uninformed opinion. This is better addressed to people who know their stuff and are more focused on it.
Amber: I have to share some feedback we received from Gloria. She wrote us and said,
“I would like to commend you guys for all that you do to open the door for regular folks to experience financial freedom. I reside in Fort Lauderdale, FL. I am a member of Profits Unlimited and is getting ready to join Extreme Fortunes.
I have made tremendous gains in Profits Unlimited in stocks such as CGC, AMD and my favorite TSLA. I am trying to abide by the Rules of the Game by having the number of stocks that you suggest in my portfolio.
And of course, I am a Strong Hands investor and am proud to be a part of the Strong Hands Nation. And before I forget, I want to thank my friend for recommending your service. Once again, thanks for all that you do!”
Paul: Amber and I and our amazing team — I know I say that and people think I am BSing. No, our team is amazing. Wonderful people. Thank you so much for allowing us to serve you. It’s our privilege. We are thrilled to see you make money. That’s ultimately our goal.
To put opportunities in front of you, engage you, entertain you, keep you informed and provide investments that we hope you will use and you will ultimately profit from.
Amber: Definitely. Well said. I want to thank you so much for coming in today. We’ve learned quite a bit as per usual. Thank you.
Paul: Thank you, Amber, for having me on.
Amber: Thank you, Bold Profits Nation, for submitting such great questions! It’s because of you we are inspired to do what we do.
Your strength, tenacity and grit are prime examples as to why you’re our heroes!
As I mentioned earlier, if you want in on these stock investing opportunities of the America 2.0 boom, consider subscribing to Paul’s Extreme Fortunes stock trading service. This service aims to capture gains of as much as 1,000% in our America 2.0 megatrends by investing in small-cap companies before they take off.
We wish you a healthy and safe week ahead. Take care.
Editor, Profits Unlimited