Preparing for these stock market predictions will keep you from being the victim of change
The easiest way to invest is to find those unavoidable futures, those realities being driven by universal forces, and invest in the companies that will benefit. But what are those changes that are not only imminent but that we know will come to pass?
I’m not talking about flying cars or colonizing mars here. I’m talking futures that we know will occur within the next ten years, predictions that will put you ahead of the curve for the best investments of your life!
In this video, I’ll reveal the five unstoppable changes to your world, when it will happen and the stocks that will ride the change all the way up. I’m Joseph with Let’s Talk Money and this is five predictions for the future of money.
How Biotech will Change the World – and the Stock Market
Number five, a boom in biotechnology.
In the 100 years to 1900, life expectancy increased by just six years from about 43 years old to 49 for the average person born in the United States. Over the most recent hundred years, it’s almost doubled to 80 years old.
People have seen the literal life-changing power of biotech and they want more!
Funding for early-stage biotech companies has surged four-fold in just the four years through 2018. Venture capitalist Paul Graham said last year, “I’ve noticed that raising money for biotech research in 2019 looks a lot like raising money for a tech company 10 years ago.”
That wall of money into new research is accelerating advances in gene altering therapies and other treatments. The Alliance for Regenerative Medicine is tracking nearly 700 gene therapies or gene-modifying therapies in clinical trials that could do everything from cure Alzheimers to turning back the clock on aging.
The biotech boom could last for decades and while tracking individual companies can be difficult without a PhD in medicine, there are a few funds that give you front-row access to the revolution. These include the iShares Nasdaq Biotechnology ETF, ticker IBB, and the ARK Genomic Revolution ETF, ticker ARKG.
The New World of Virtual Work
Number four, almost all work will be virtual.
Just six months ago, this would have been a totally unbelievable prediction. Now, it could be one of the first of the five to happen.
Just 5% of the U.S. workforce, about eight million people, worked from home in 2017 according to data from the U.S. Census. In that last few months, that’s exploded to 51% and two-thirds of those say they feel more productive doing it.
Besides a more productive and happier worker, employers love the lower cost of a virtual workforce. When your employees work from home, you’re not paying for office space, utilities or a lot of equipment. Workers are also willing to take slightly lower pay for the convenience of filling out that TPS report in their pajamas.
All told, Owl Labs estimates that a remote worker costs as much as a third less than the traditional in-office work.
Jack Dorsey, CEO of both Twitter and Square, announced in May that employees could continue to work from home forever. Facebook quickly followed with its own announcement and millions of other jobs may never go back to the cubicle coffin!
Looking to profit from this shift in workplace means investing in the tools most used by the new work-from-home workforce. Nearly half of home-based workers reported increased usage of video conferencing while 41% reported using cloud-based drives more often. That means companies like Zoom, Microsoft’s Skype, Google and Cisco should all keep benefiting as we transition.
Predictions for Self-Driving Cars Finally Coming True
Number three, fully self-driving cars.
It’s been over 60 years since Science Digest predicted the imminent revolution in self-driving cars and while it’s been a long six decades…we are now on the edge of a cliff that will change nearly every sector of the economy.
Every major automaker has invested billions in the technology and while timelines have been constantly pushed back, there’s reason to believe we could reach level 5 automation by 2025. That’s a fully autonomous vehicle requiring no human interaction within the next five years.
In fact, there have already been several highway tests of self-driving trucks and 2019 saw the first actual commercial delivery. A truck developed by Plus AI drove 2,800 miles from Tulare California to Quakertown Pennsylvania with zero ‘disengagements’ that’s times where the driver had to physically touch the steering wheel to take control. The trip took 41 hours to deliver the 40,000 pound cargo through 12 states, including icy weather around the Thanksgiving week.
This will be one of the biggest changes to everyday life and will transform nearly every sector. The average car sits unused more than 90% of the time but that could all change. Fewer people will own cars because an autonomous car can drive itself to wherever it’s needed instead of sitting in your driveway. A self-driving ridesharing car will never be more than five minutes away and will become the preferred method of transportation.
Delivery and logistics costs will plunge. Driver costs make up more than a third the operational costs for trucking companies and many warehouses are already using robotic technology that can organize, load and unload a truck. That means the first winners will be transportation with companies like Knight-Swift, ticker KNX, and Werner Enterprises, ticker WERN.
Ridesharing services like Uber and Lyft both have massive investments in autonomous tech and Intel-owned Mobileye is sticking firm to its 2022 forecast for a self-driving ride-hailing service.
A Collapse in the Value of the Dollar
Number two, surging inflation and the value destruction of the dollar.
This is another one that could come completely by surprise and wipe out the savings of millions of Americans. There’s already talk of a coordinated move by foreign governments to undermine the strength of the dollar. That makes their exports cheaper to sell in the U.S. and devalues dollar-denominated debts held by their government.
But the unstoppable factor in this prediction is that it won’t need that outside manipulation to destroy the value of the dollar and cause runaway inflation.
Emboldened by soaring deficits with no consequences, politicians on both sides of the aisle are opening up the tap on government spending. This combined with a drop of demand for dollars, competition from other currencies and the digitization of wealth will demolish the value of the greenback.
The U.S. Federal Reserve, the country’s central bank, has established nine new lending facilities to push more money into the economy, exploding its balance sheet from an already bubbly $4.1 trillion to what most expect could reach $10 trillion by the end of the year.
The Fed has even gone so far as to invest in the bonds of junk-rated companies, zombie corporations being held up by easy money. The Fed is literally pumping $1 million into the financial system EVERY SINGLE SECOND!
But it’s not just the central bank. The U.S. budget deficit, the difference between what the government collects in taxes and what it spends, will top $4 trillion this year. That’s one year of debt spending and nearly 20% the size of the economy.
It will explode the debt-to-GDP ratio to above 100% for the first time in almost 80 years.
The trend away from the dollar will start with less demand for dollar-denominated assets like oil and global participants that are more willing to use other currencies like the Euro, Chinese Yuan and digital currencies for trade.
We’ve got a huge supply of money-printing, some of it going to less than great investments by the central bank and less demand for dollars globally. Any one of these factors could lead to a weakening of faith in the greenback and loss in value, taken together, they could cause a collapse like we’ve never seen before.
When that happens, any money held in savings accounts will be next to worthless and bond values will plunge.
The winners will be hard assets like gold and real estate, anything that can keep its value. Stocks of companies that can raise their prices quickly in a hyper-inflationary environment like will also do relatively well. For example, companies selling consumer staples where customers will have no choice but to pay higher prices.
The Real AI Robotic Revolution
And our top unstoppable future, the AI robotic revolution.
We’re not talking about a Terminator dystopia where humans are hunted or second-class citizens. Artificial intelligence is evolving at an exponential rate but that doesn’t mean it will become a malignant force. Higher intelligence doesn’t require emotional development like greed or the desire for power.
Killer robots or not, we are on an unavoidable path of robotics and AI and it will affect every aspect of our lives.
A study out of Oxford University predicts that 47% of all jobs in the U.S. could be automated within the next 20 years. Industrial robots are already common but the shift will be undeniable when it hits the consumer and household market. Experts predict the demand for robotics in the consumer market will grow seven-times that of the industrial market over just the next decade.
McKinsey Global estimates that up to a billion employees could be displaced globally by 2030 with the pain felt in nearly every industry from software testing to creating financial reports and even medical diagnostics.
This is a trend you NEED to be investing in, not just for wealth creation but to protect your income if your job is eventually replaced. Invest in the companies making this robotic revolution a reality so you benefit as the future becomes the present. Leaders in AI development include IBM, Google and Microsoft. While IBM pioneered a lot of the earliest development, Google has cemented its leadership with the acquisition of research firm Deep Mind in 2014 and its own Google Brain program.
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It’s not a matter of IF these stock market and money predictions come to pass but WHEN. Each of these will become a reality within the next decade and change the world as we know it. If you’re not prepared for it, then you’ll be a victim like everyone else.