Straight Arrow up in Stocks – 3 America 2.0 Drivers
Forget the bottom. We’re currently riding the “V-bottom’s” straight arrow up in stocks.
As we’ve been telling you, the market anticipates. And right now, it’s pricing in a huge innovation boom that’s accelerating fast.
What’s rocketing it up?
The foundation of our new economy — America 2.0 (#A20).
On top of that, there hasn’t been this much cash floating around since 2000’s Y2K. And all that cash is going to flood back into stocks … and one other gem investment that’s about to take off.
Not every stock will rebound up. But we’ll tell you exactly where to put your money today to ride the V-bottom straight to new highs.
What matters now is the future.
And we’re #BOP (bullish, optimistic, positive) on what’s about to come.
Did you miss Paul’s take on the market’s incredible future for 2020 and beyond? Catch up here on America 2.0: The Fourth Industrial Revolution.
Retesting The Low? No.
It’s splashed across MarketWatch and it’s become a common belief. It’s an idea engrained in everyone’s mind, but it doesn’t have to happen.
First of all, there have been plenty of bouncebacks in the market that haven’t retested the low.
For example, in 2018 when the S&P went down nearly 20% and a lot of stocks down more than that. It bounced right back in January and never went anywhere close to that again.
There’s plenty of examples of it, but this time we see a lot of demand for stocks right now. Nobody expected this. We are one of the few in this space that are expecting a V bottom.
The Market is no longer pricing anything to do with COVID-19 because we know what’s happening there. The stock market is pricing in growth.
Even though there are still cases, and we are not out of the woods, the stock market is pricing in the growth that we will see when things return to normal.
It’s always anticipating what is going to go on in the future, at least six to 12 months.
The World Reshaped by Technology
What’s important is in the future and this lockdown has given us a glimpse of how vital technology has become.
The adoption of technologies through this has accelerated growth in those sectors.
The market is pricing in that kind of huge innovation boom we are going to have after all this is said and done.
A lot of people are waiting for the last coronavirus case to show up and thinking that’s the moment.
However, many homebuilders are indicating there’s no real slowdown. Some of them are accelerating sales into this period where you would think there would be a slowdown.
We believe there’s going to be a V bottom with an arrow going up — an accelerating growth bottom.
In other words, we’re going to come out of it and we’re going to start to see some big numbers. The stock market is telling us that by what it is bidding up.
America 2.0 & The Next Phase
Cyclical stocks, housing stocks, industrial stocks, semi stocks — the market is not just telling you there’s going to be a recovery, it’s telling you that the economy when it comes back is going to be stronger than it was when we entered this.
These are the areas that are seeing the most innovation and they are the foundation of what’s going to be the new economy.
We’re going to manufacture more, we’re going to have more things, spending is going to go up and that’s what drives the economy.
It hits the three elements of America 2.0.
1 – The millennial generation coming of age, making more money, buying houses, having kids, buying cars. It’s the basis of all economic growth.
2 – Housing: the biggest expense. The idea that we’re going to go into a depression and there are people who in their 30s going out there making the biggest expenditure of their life is a little crazy.
3 – Tech megatrends that are underpinning the change that is going around, combined with the fact we are now starting to bring back manufacturing to the United States. It’s going to drive manufacturing, drive income and drive employment.
That’s the basis of the America 2.0 boom we’ve been talking about and the Fourth Industrial Revolution.
This whole thing absolutely accelerated all of that change.
Bitcoin Crash? Not So Fast
In terms of Bitcoin, there’s 18 million out of 21 million that’s ever going to be mined is already out there.
Going forward, the new amount that’s able to be mined every day is cut in half. Bitcoin Cash and BSV don’t have 18 million yet, but they are going to slow down too.
So much of the Bitcoin supply has already been mined that any demand is going to push up the price quickly.
The number of addresses that have Bitcoin and have been holding for one year is more than 60% of all Bitcoin mined. This recent dip saw a lot of it too. People were able to buy in at a price that we’re probably never going to see again. That was unexpected.
It drew a whole new crowd of people who didn’t get in before. They are definitely in it for the long run.
Tesla Owns Massive Market Share In China
EV sales are dominating the U.S. Now they are also a big part of the market share in China.
Tesla sold 30% of the electric cars in China.
Tesla is a stock that people are probably skeptical of, just like when it went from $300 to $900.
There’s a reason that it’s valued the way it is. It’s because they are an innovator in electric cars.
They are the global leader in automated driving. Tesla cars are the only ones you can get that have anything remotely close to an autopilot feature.
They are an incredible company on the edge of being a multi-trillion-dollar company in the future. Tesla is another one that’s going to have huge demand going forward.
Cathie Wood at ARK Invest predicts a stock price of $4,000 which seems completely attainable.
ETFMG Alternative Harvest ETF (NYSEArca: MJ) is up 10% already over the past few days.
Oregon has record marijuana sales. Illinois has record sales. Massachusetts has record sales. Washington DC is not a state, it’s a territory, but also record sales. California was in there too If we had enough time we could probably count down state after state hitting record sales.
Sales are going to skyrocket. Some stocks are still in the process of bottoming out.
Today, HEXO did a deal today for a cheap price. Many people would see that as a negative. From our perspective, there is still somebody willing to put $40 million into a company.
Outside investors are putting tens of millions of dollars into this company.
If you looked at just the stock price you would think they were going to go out of business soon. They are getting so much money.
Everyone wants to throw their money at them while they are so cheap.
We don’t see how they could get much cheaper at this point. It’s really a great opportunity to buy.
Editor, Rebound Profit Trader