Stocks got slammed on Monday, as fears swirled over the meltdown of Chinese property giant Evergrande.
On Tuesday, the bulls tried to lift the market. They failed.
But on Wednesday, they finally seized back control. And stocks rallied into the end of the week.
What shifted the balance of power in the bulls’ favor?
The Fed… the world’s most powerful central bank.
On Wednesday, it wrapped up a regularly scheduled two-day meeting. And it announced to the press that it was keeping the stimulus spigots wide open.
Here’s how this played out in the S&P 500, our regular stand-in for the stock market:
As you can see, right after the Fed announced it was keeping credit conditions loose, the S&P 500 jumped.
The Fed is signaling to investors it has their backs.
And as I showed you last Monday, we’re heading into what have typically been the best three months of the year for stocks.
So despite all the wailing and teeth-gnashing in the media, now is NOT the time to give up on your quest for life-changing gains in the stock market.
Instead, it’s a golden opportunity to take advantage of the moneymaking megatrends we’ve been putting on your radar.
And the biggest opportunity to profit right now is in bleeding-edge technologies poised to change the world.
So today, I (Chris Lowe) am continuing my long-running campaign to get you to think seriously about the size of the opportunity ahead and, if you haven’t already, focus at least a portion of your portfolio on the tech revolution.
Legacy Research is the publisher behind Teeka Tiwari, Jeff Brown, Dave Forest, Jason Bodner, Greg Wilson, and Mike “Zappy” Zapolin.
We unearth market megatrends mainstream investors still haven’t latched onto. And we show you how to profit.
That’s why I’ve spilled so much digital ink on pre-IPO (initial public offering) deals… legal cannabis stocks… the boom in psychedelic medicine… and the commodities bull market.
It’s also why you hear so much from me on cryptocurrencies, blockchain, the Metaverse, DeFi (decentralized finance), quantum computing, CRISPR gene editing, self-driving cars, artificial intelligence (AI), and 5G wireless networks.
Just like the telegraph, radio, the car, the airplane, television, the internet, and cell phones… these tech breakthroughs will profoundly change the world.
They’ll also spark an explosion of innovation… create trillions of dollars in new wealth… and mint a new class of millionaires and billionaires.
If you don’t believe me, ask your neighbor what he thinks of CRISPR.
Or call your mother and ask her what wallet she uses to store her bitcoin (BTC).
Ninety percent of the time, they’ll respond with a blank stare. They may even think you’re a little crazy.
And that’s a good thing… Most folks meet ALL transformative tech with disbelief and confusion.
If that’s the reaction you get when you share the ideas you learn from your favorite Legacy analyst, we’re still in the early stages of that trend.
I was 20 when I began using one of the first web browsers in 1996. So I was a relatively early adopter.
And I caught the last couple years of the dot-com bubble.
My first real job was with an e-commerce startup in Buenos Aires, Argentina.
Many of my friends at the time had no clue what e-commerce was… let alone the impact it would have two decades later.
And if you were looking for the mainstream press to alert you to what was going on… good luck!
Take this gem from a 1995 Newsweek article about the internet…
The truth [is] no online database will replace your daily newspaper, no CD-ROM can take the place of a competent teacher and no computer network will change the way government works.
Newsweek wasn’t just wrong… It poured scorn on folks who dared to suggest the internet was a big deal.
It’s the same today with the technologies we track in these pages. Mainstream media tends to denounce them or doubt the extent of the impact they’ll have on the world.
For instance, figures from 99Bitcoins reveal there have already been 37 articles in the mainstream press about how bitcoin will go to zero.
If you’re looking to invest in the future, that’s a sweet spot.
Take your average Wall Street investor. He may not know it, but he’s not investing in the future.
He’s investing in the past.
It’s a point Cathie Wood talks about a lot. She’s the founder and CEO of storied tech investment firm ARK Invest. She’s also its chief investment officer.
Wood and her team are responsible for the 153% return of the ARK Innovation ETF (ARKK) in 2020. It’s an actively managed exchange-traded fund (ETF) full of disruptive tech stocks.
And Wood puts its success down to her focus on the future. As she explained on crypto podcast Bankless…
When I was trying to explain to someone what I wanted to do, before starting ARK, [someone] who’s not in [the] business, he said to me, “Oh, you mean the future of investing is investing in the future.” And I said, “You got it!”
Well, now, when I started in the business, that’s the only way people thought about investing. And then we went through the tech and telecom bust [at the end of the 1990s] and then the 2008 and 2009 meltdown. And we ended up with huge risk aversion in the markets and a tendency to invest very much like the broad-based indices out there [the S&P 500, the Nasdaq, the Dow, etc]. In other words, not adding much more value than the indices themselves.
And the indices are where they are because of what has happened historically. The largest companies… the most heavily weighted companies in these indices… are there because of their past success. But if we’re right, and all of this disruptive innovation is about to explode, well, they are in harm’s way.
That’s why Wood says she’s happiest when she’s going against the crowd. It tells her she’s on the right track and focusing on the future, not the past.
It’s a good “screen” for your portfolio, too…
Are you investing in the past, through the big stocks that fill up the S&P 500, the Nasdaq, and the Dow?
Or are you investing in the future, with stocks on the bleeding edge?
They’re about the future, not the past.
As regular readers know, 5G delivers download speeds up to 100 times faster than 4G.
So you can download a two-hour movie in 10 seconds. Dropped phone calls and slow-loading web pages will be things of the past.
But as our tech expert, Jeff Brown, has been hammering home, that’s not why 5G is a game-changer. It’s a game-changer because of the suite of sci-fi tech it’ll make possible.
Here’s Jeff with more on that…
The never-before-seen speed of 5G will make one of the biggest trends in tech – self-driving cars – a reality. They produce a massive amount of data as they drive around. They send this back and forth over wireless networks for AIs to analyze. The AIs can then determine how to improve the car’s driving performance.
5G also has breakthrough medical applications. The network’s smooth, uninterrupted signal allows a brain specialist in Los Angeles to do surgery on a patient in a remote village in the Sahara Desert. It will all happen by way of a 5G-connected robotic surgeon.
And those are just two of the many once sci-fi technologies 5G will enable at scale.
All told, Jeff says the 5G rollout will grow U.S. GDP by $500 billion… create 3 million new jobs… and usher in more than $12 trillion in new wealth.
As Jeff revealed in an online briefing he aired last week, that’s due to what he calls “The Flip.”
It’s the moment when sales of 5G phones overtake those of 4G phones.
And it’s happening right now.
5G is no longer something investors are anticipating. It’s something we’re about to use all the time.
So if you haven’t already, make sure to check out Jeff’s briefing ASAP.
Warren Buffett, Mark Cuban, and Elon Musk are already positioning themselves to take advantage of this setup.
And Jeff shared details on how he plans to profit. He also revealed his No. 1 tech stock for the rest of 2021.
Then look out for more from me on this subject later this week.
September 27, 2021