U.S.-Chinese tensions have run high ever since Trump laid out plans to counter unfair trade practices from China in 2016.
These tensions have rippled across almost every industry, but almost none as prevalent as in the telecom industry. This is a war against Chinese company Huawei, the world’s largest provider of telecommunications equipment and a leader in next-generation 5G technology.
Now, this is not exactly a new conflict with Huawei, but this could be the biggest one yet as one of the largest telecom equipment upgrades in history is taking place right now with 5G. Taking a step back, issues with Huawei go all the way back to 2003, when Cisco Systems Inc. (NASDAQ: CSCO) sued the company over theft of its technology. This was over several patents, which Cisco eventually won.
Here are just a few of the conflicts over the years:
2004: Huawei employee caught spying at a trade show.
2008: Leaked documents show Huawei secretly helped North Korea build its wireless network.
2009: Accused of corporate espionage after Huawei employee tries to extract data from an Indonesian mobile operator.
2012-2017: Huawei-installed technology at African Union headquarters was reportedly hacked for five years.
I think you get the picture. It’s no wonder the United States, and now the rest of the world, is looking to cut Huawei out of its telecom networks.
The United States officially banned Huawei when Trump signed an executive order in May 2019, and now this week, the United Kingdom has followed suit and banned Huawei from its 5G networks. On top of that, London is calling for the removal of all Huawei equipment by 2027. The United States and UK are not the only two countries that have banned Huawei either. Dozens of others have also done so, including Telecom Italia excluding Huawei from bidding on its 5G network project in Brazil.
But this isn’t just geopolitical hardball. It’s an opportunity for investors.
5G is one of the biggest tech investing opportunities you’ll ever see, and one of the leading companies is being barred from the biggest markets in the world.
Life has changed significantly in the face of the coronavirus pandemic, and the need to adapt has created a new normal.
For example, I can’t remember the last time I physically walked into a grocery store. Since the coronavirus, all I’ve been doing is loading up an app, selecting what I want, and waiting for my groceries to be delivered right to my front door at the time of my choosing.
And it’s not just online ordering that is expanding during this time.
From working at home through Zoom meetings to video conferences with your doctor, accessing a reliable technological infrastructure with high speeds to keep everyone connected is more important than ever.
There’s no doubt about it. We are living in a time of astounding financial opportunities.
Last year, was a great one year for the average retail investor, continuing the epic bull market that began in March 2009. As we move into 2020, it looks like it has the potential to keep right on going.
The terrific economy that we’ve had has helped propel stocks to record highs. Unemployment remains at 50-year lows as real income adjusted for inflation is moving up for millions of Americans.
In a case like this, you’d think all you have to do from here on out is just coast on autopilot. After all, the bellwether S&P 500 was up roughly 28.9% for the year as of the close on December 31.
But, as impressive as that sounds, you could do much better in 2020.
That’s because the S&P 500’s numbers for the year are nothing compared to the gains members of my monthly tech investing newsletter, the Nova-X Report, scored in 2019.
Indeed, our three best performers for the year more than doubled the S&P.
I’ve been writing about 5G high-speed cellular networks for more than five years now, and I couldn’t be more excited for what’s ahead in 2020.
Sure, 2019 saw a fair amount of progress in rolling out this advanced new platform. The nextgen mobile network is available in a few markets.
But we have a big catalyst coming in fall 2020. That’s when Apple Inc. (AAPL) unveils a new iPhone that’s 5G native.
Don’t underestimate the importance of this move. Apple sets the standard for the rest of the sector.
5G will be important for the entire tech ecosystem in the year ahead, and it’s just one major catalyst that investors should track. There are key developments with chip stocks and beaten-down software and cloud players that all matter to your portfolio.
Without semiconductors, there is no American economy. That’s because the American economy is driven by tech, and tech is driven by semiconductors. After an outstanding jobs report, big media is finally coming around to my point of view that tech investors have lot of upside ahead, and very few reasons to be worried. In times like these, it’s important to look for the pick-and-shovel plays that will be supporting development in as many breakout sectors as possible. The right semiconductor plays will be able to profit from the rollout of 5g wireless, along with advances such as cobots, robots that cooperate with humans in the workplace. With new breakouts just around the corner in 2020, you’re not going to want to miss the firms that will be holding it all together. Click here to watch.
It says to stay away from investing in Chinese stocks during our trade battles with that nation.
It’s a good thing that someone forgot to give Daniel Zhang a copy.
Here’s the thing. While tariffs the U.S. imposed on some Chinese goods have slowed factory output over there, that has hardly filtered down to the nation’s thriving Web sector.
And that’s where Zhang is really shining right now. He’s the CEO of Internet giant Alibaba Group Holding Ltd. (BABA) and just pulled off a remarkable coup.
In the first hour of the firm’s recent Single’s Day shopping bonanza Nov. 11, it brought in $13 billion. No, that’s not a misprint. Alibaba sold more goods in 60 minutes than hundreds of U.S. firms do in a year.
By contrast, that’s roughly 80% of what Amazon.com Inc. (AMZN) pulled in last quarter.
There’s a tech “play” out there that gives us access to just about everything: solar panels, data storage devices, tablets, smartphones, cars and trucks, and even high-definition TV sets.
But that’s just the beginning.
It also puts us in antibiotics… water purification systems… and even NASA spacecraft.
And I bet that most of you have a piece of this “Universal Tech Play” on you as we speak.
I’m talking about silver.
Most investors think of it as a precious metal – a way to store value.
But you’re not “most investors,” and you now know that silver – this Miracle Material – has a special set of properties you won’t find in other commodities. It’s an excellent electrical and thermal conductor; it provides a durable and smooth coating for many tech components that can’t have imperfections; and it has anti-microbial properties that help medical devices stay germ-free.
Washing machines, refrigerators, air conditioners, air purifiers, and vacuum cleaners all rely on silver nanoparticles to sterilize up to 650 types of bacteria.
And right now, another hot growth area is just starting to develop for silver – nanotechnology.
Engineers have begun tinkering with this metal, looking for ways to apply wafer-thin layers of silver to a range of industrial and medical products.
While silver prices have been weighed down by strong economic figures lately, this shouldn’t deter you long term. In fact, the best time to find great bargains in silver is before another price surge.
The CNBC hosts asked me what the financial impact would be if the company stopped selling its Galaxy Note 7 smartphone entirely (the company hadn’t done so yet at the time). I answered that it was impossible to know how big a charge against earnings the firm would take – though, clearly, it could run into the billions.
Now, a few days after the company discontinued the phone, we know this: Samsung investors saw the value of their South Korea-traded shares lose some $17 billion in value Tuesday in what was the biggest single-day decline for this stock in eight years. And Samsung itself says it expects to lose well over $5 billion in profit – about half of what it earned in 2015 – thanks to the debacle.
I take no pleasure in Samsung’s misfortunes. But as your guide to building wealth through tech investing, I want to show you a simple way to “short” this quality control-challenged tech giant – and make some money for yourself.