The 4th “Industrial Revolution” has started … and it’s going to change our lives — and by extension, our portfolios
First, a quick note today on Matt McCall and his new cannabis income strategy …
For any readers who aren’t familiar, we first referred to this strategy last week — it’s a new way to play the cannabis sector that combines income and capital gains. We’re not talking about dividends. No penny stock gunslinging. No leverage. It’s simply a little-known, yet powerful, market strategy applied to some of the top names in the marijuana sector.
Well, instead of me explaining, why don’t you let Matt McCall actually show you — in a real brokerage account, executing a real trade, that will generate about $500, in real time. And you can watch for free, no strings attached.
As Matt recently put it …
I’m showing it for free, because I figure I’d better put my money where my mouth is … and get the word out broadly that Cannabis Cash Weekly does do exactly what I claim. Not only that, the method is surprisingly simple. Thus, it’s potentially VERY lucrative for any investor.
My friend took a sip of his beer and glanced around the bar, unimpressed.
Though we had met to watch football, our conversation had somehow drifted onto the topic of “5G.” It was clear I was doing a poor job of explaining why it’s “such a big deal.”
He looked back to me and continued, “I mean, my phone is already pretty fast. How much more speed do we need?”
“5G” is a popular buzzword these days. Most people have a vague awareness that it’s something significant, but they’re either not sure why, or they lack a full awareness of the sheer enormity of the changes it’s going to bring.
The reality? Without hype or embellishment, 5G’s impact will be revolutionary in its effect on our everyday lives … and for wise investors, on their portfolios as well.
Unfortunately, most people don’t fully recognize this reality. Instead, like my friend, they imagine 5G as little more than a nice bump in internet speeds that will be great, but hardly “revolutionary.”
The flaw in this thinking reduces to one principle mistake … straight-line extrapolation.
When we think about technological advancements, we often imagine something of a linear progression. What we do is evaluate the amount of change we experienced between “technology back then” and “technology now,” and then we project that some amount of progress forward.
For instance, remember the leap from 3G to 4G? Was it noticeable?
Absolutely. It enabled us to run all sorts of apps on our phone. It resulted in much faster upload and downloads speeds. It made a clear difference in convenience.
But would you characterize the jump from 3G to 4G as transformational? Probably not. It made what we already had faster and easier … but it didn’t really transform what we had.
The problem is that most of us are now projecting a similar “progress leap” from 4G to 5G. We think the change will be in relative “straight-line” proportion to what we experienced when 3G went to 4G, a bit like below …
It’s not going to work this way …
Yes, 5G will be faster — significantly faster. As Matt McCall, editor of Investment Opportunities wrote to subscribers some months back …
The current 4G network clocks in at around 100 megabits per second, which is extremely fast compared to 3G. But once 5G rolls out, that number jumps to 10,000 megabits per second — or 100 times faster than the current speed!
But 5G’s speed itself isn’t the story.
Speed isn’t what’s going to change our lives … or our portfolios. The real story is the avalanche of breakthroughs and entirely new industries this lightning-fast speed is going to enable and create.
In other words, it isn’t the speed, it’s the function.
Given this, 5G doesn’t even belong on the chart above. It’s so transformative that we would need to add an entirely new axis — call it the “Z” axis, and put 5G over on it.
It’s that much of a game-changer.
***The coming breakthrough
This past March in Beijing, a patient with Parkinson’s disease went into surgery to receive a deep brain stimulation (DBS) implant.
While significant for the patient, this wasn’t exactly a huge deal for the medical community, right? This type of surgery happens with relative frequency.
The difference is the surgeon was 1,800 miles away from the patient when it happened. It was the world’s first remote brain surgery … thanks to 5G technology.
Dr. Ling Zhipei manipulated the instruments in Beijing, operating on the patient who was 1,864 miles away in Sanya City, Hainan. He did it via a computer, using a 5G network powered by China Mobile and Huawei.
Now, imagine this surgery happening on a 4G network if/when that connection experienced video lag, remote control delay, or any sort of connectivity issue. The consequences of such an issue could have, quite literally, cost a man his life.
The 5G story isn’t about speed. It’s about an entire new world of possibility unfolding before to us.
***The “Next Industrial Revolution”
A moment ago, I referenced Matt McCall, editor of Investment Opportunities. Matt is a thematic investor. This means he specializes in identifying major trends that are re-shaping our world, and by extension, the investment markets. With this market-orientation, 5G has been on Matt’s radar for a long time.
Few people understand the implications of 5G better than Matt. Fortunately, he recently wrote a piece that explains the enormity.
He starts by using an analogy, coupled with historical advancements:
There have been three industrial revolutions in America over the past 200 years.
And at the heart of each one was a core technology — a technology so critical, so revolutionary, that it singlehandedly drove all other technologies in the revolution.
Our firm calls these “keystone” technologies.
Why?
A keystone is the central and most important piece in an arch — one of the strongest structures in the world.
Without the keystone, the rest of the structure would crumble and fail.
So, what was the first keystone?
Matt points toward the steam engine. It made the revolution possible. It was the one technology that made everything else — locomotives, the power loom, cotton gin, and a new generation of state-of-the-art factories — a reality. Take away the steam engine and all these other inventions would have ceased to exist.
The keystone of the Second Industrial Revolution was electrical power.
From Matt:
It drove new technologies like assembly lines, the telegraph, the telephone, the light bulb, washing machines, and air conditioning. Without electricity, these breakthroughs simply would not have been able to exist.
For the Third Industrial Revolution, Matt points toward the internet. Without it, so many world-changing breakthroughs would not have been possible … like smartphones, mobile payments, social media, Netflix (NFLX), Amazon (AMZN), and Alphabet (GOOGL).
***The keystone of the next revolution will be 5G
From Matt:
5G so big and so powerful that it will singlehandedly drive all other technologies over the next several decades.
It is the FOURTH keystone.
Make no mistake, 5G technology is going to unleash a new era of prosperity and trigger a massive wave of innovation.
The fourth keystone will not only make each and every one of these amazing technologies possible, but a very real part of our daily lives. It’s the one technology that’s going to fuel all the technologies of the future …
***So, how do you invest in it?
Part of the challenge is 5G’s fingerprints are on all sorts of sectors, industries, and businesses. Look at a few of the ways an investor could play 5G:
– The infrastructure providers
– The chip-set makers
– The device makers
– The data storage companies
– The new app makers
– The new content creators
– The brand-new industries created — self-driving cars … robots … drones … tele-medicine … smart factories … smart homes …
And this is hardly an exhaustive list, but it gives you an idea as to the opportunities … and challenges.
I was discussing this point last week with our CEO, Brian Hunt. As we talked, we both began gravitating toward the idea of creating our own personal ETF — basically a mini-basket of 5G stocks. You might think of it as a “best of breed” for 5G’s various sub-sectors. Perhaps 10-15 stocks that you buy, then forget about for a decade. Put in $50,000 … it ends up being $5,000,000. If that sounds aggressive, consider this …
The research group Ned Davis compiled the top performing stocks of the 90s. The data storage company, EMC, was number two. But what did that mean specifically for investors?
From its closing stock price on the last trading day of 1989 through the end of 2000, a $5,000 investment in EMC would have ended up being worth roughly $3.5 million.
So, let’s imagine you had $50,000 to invest in the market at that time. You put your money into five stocks, $10,000 each — EMC was one of them.
Even if each of the other four stocks went to $0, your $10,000 investment in EMC resulted in your net-worth exploding to $7 million a decade later.
The wealth that 5G is going to create will be on par — if not vastly greater than — the wealth associated with EMC’s data storage. The technologies will simply be that transformative.
Here’s Matt on that point:
Here’s my prediction: If you invest in 5G today, it could be like getting in on the early days of Amazon, when investors could have made a massive 102,000% gain.
If you’d like to create a 5G basket but aren’t sure where to start, Matt has been researching this extensively for the last six months. You can learn more by clicking here.
***You can hear from Matt in person at the 2019 Stansberry Conference in Last Vegas
The 2019 Stansberry Conference will be happening on Monday, Oct. 7 & Tuesday, Oct. 8, at the Aria Resort & Casino in Las Vegas, Nevada. Matt will be a guest speaker, where he’ll be discussing “8 MegaTrends that can go Up 10X.”
If you’re familiar with our sister newsletter, Stansberry Research, then you’ll recognize other highlighted speaks including Porter Stansberry, Dr. David Eifrig, and Dr. Steve Sjuggerud. The event will also feature Dennis Miller and Jim Grant.
By the way, if you can’t attend in person, you can attend “online” from the convenience of your own computer, wherever you are. Click here to learn more about the event and attendance options.
Wrapping up, don’t make the mistake of thinking 5G is just about speed. It’s going to change our lives — and your portfolio if you’ll let it.
