This story was originally published here.
The FAANG stocks (Facebook, Apple, Amazon, Netflix, and Google) have been on an incredible run since the fear-induced selling in late February and early March.
Four of the five stocks are up double digits for the year. Amazon is up an impressive 41%. Compare that to the S&P 500, which is down 3.8% year-to-date.
This is very logical.
In the wake of the COVID-19 lockdowns, the world turned to a variety of technologies to carry on with daily tasks.
Can’t go to the grocery store? Order groceries or everyday products on Amazon’s e-commerce platform.
A company’s workforce can’t go into the office? They must rely on cloud-based applications supported by Amazon’s AWS.
Stuck at home? Turn on Netflix or browse the web, where Google can serve us more ads.
Need to stay in touch with friends and family? Scroll through Facebook or Instagram to communicate.
That’s a very high-level explanation. But it demonstrates how these companies have been supplying the essential technology for a world on lockdown.
As for biotech…
Thanks to COVID-19, the biotech industry is progressing at a pace I have never seen in all my years as an analyst. Breakthroughs that would typically take years are happening in months or weeks.
Suddenly, the world is aware how quickly we can sequence a virus and develop potential vaccines… use AI to find compounds that might bind to COVID-19 and render it ineffective… and how we can create antibodies that can fight a virus in a matter of weeks.
Every venture capitalist and private equity house has just woken up to how powerful these technologies are and how quickly biotech can move. We’re going to see an acceleration in biotech investment, early stage companies, and IPOs (initial public offerings) as a result.
And many biotech companies are not impacted by supply chain problems. They don’t care if the market is volatile. And when they make progress with their research and development, the stocks run higher.
And finally, 5G…
Take SBA Communications (SBAC). This is a company that erects and maintains wireless infrastructure, including 5G wireless architecture.
As you can see, SBAC sold off with the rest of the market earlier this year. But once the market realized how essential 5G technology would be for a world in quarantine, the stock rallied.
It regained all of its losses and even made a new 52 week high. We sold SBAC for a 90% gain in less than two years. Outstanding.
We must remember that 5G is not a “nice to have” technology. It’s an essential piece of national architecture on par with roads, bridges, and tunnels.
5G is coming no matter what the economy is doing. In the event of a depression – which I don’t expect – quality 5G companies will weather the storm better than the broader market.
5G wireless technology and infrastructure, biotechnology, cloud-based services, artificial intelligence, and semiconductor technology.
We can find great investment opportunities regardless of the economic environment by following where the money flows.
Tech guru makes his next “BIG” prediction again…
Jeff Brown – Silicon Valley’s most successful angel investor… he was just off the campus of Yale University presenting the next tech cash cow….
He’s just shared with the public for the first time… a piece of tech that could be worth a $100 billion dollars right now and it’s inside the object on the table.
It’s the missing piece to the most anticipated new market — 5G could be worth $667.90 billion dollars…
By June it’s estimated 30 million American’s will have 5G access. And by the end of the year, almost 100% of the country will be 5G capable.
That’s just America… 5G mobile phones will take over the world… Currently, 65 million Chinese people already have 5G access.
And every single new 5G phone will need this small piece…
The shocking thing is…. only one unknown company produces this invaluable missing piece… and it’s stock is going to blow.
Jeff’s last prediction was Nvidia… and now it’s worth $13.3 billion dollars… and Jeff is almost always right.
This time he believes this stock to be the #1 stock of 2020…
And in this video, he’ll explain everything there is to it… this is just the tip of the iceberg…