If you’re like most families, rising gas prices have caught your attention.
Then again, this is the time of year when many people begin planning their first big trip of the summer, the Memorial Day weekend.
It’s a three-day holiday tailor made for a road trip. It also is the traditional kickoff for summer travel.
And anyone taking to the road this year is likely to pay more for gasoline, which has risen by 22.6% so far this year. Although we have an energy boom in the U.S., we face two short-term issues.
1. The huge flooding in the Midwest this winter has hurt production of ethanol, a key gasoline ingredient.
2. Venezuela’s collapsing economy has put a pinch on global supplies because that troubled, socialist nation is an energy exporter.
Well, today I want to let you know of a hidden way to “hedge” against rising energy prices.
This is a high-tech firm that is a classic pick-and-shovel play because it helps energy firms optimize output.
That fact alone helps explain why it has doubled the S&P 500’s return so far this year. And is likely to crush it over the long haul…
I’ve been talking about legal cannabis here for years as an unstoppable industry, with my broad investment motto being: when laws pass, stocks soar.
Now it looks like the folks at BofA Securities, a division of Bank of America Corp. (NYSE:BAC), are finally catching on, as they’ve started to cover the industry in depth. Let me be the first to say: Welcome!
It also looks like in their initial coverage, they’re predicting that as the U.S. steps closer to federal legalization, we’re going to see more Canada-based firms trying to snatch up American ones, while the price is still cheaper than what it would be in a post-federal legalization world.
Of course, seeing legal cannabis as a global market is also something I’ve been talking about for a while, so I heartily agree here. And of course, the proof is in the pudding. Take Canopy Growth Corp.’s (NYSE:CGC) recent $3.4 billion agreement to purchase U.S.-based Acreage Holdings Inc. (OTC:ACRGF), which can be finalized when the U.S. federally legalizes.
The Bank of America analyst also believes the combined market share of the 14 largest Canadian cultivators could exceed that nation’s domestic market consumption needs by 2021, making international strategies all the more important for firms in this increasingly competitive space.
Again, I’ve also been focused on the international potential in this industry for years. The Bank of America analysts expect the global market will reach $166 billion, with the U.S. taking up about a third of that total, while Canada could account for about 3%. In all, cannabis is set to disrupt $2.6 trillion in revenue from existing industries like health and wellness to alcohol.
It was great to hear from my good friend, Frank Holmes, once again.
This time, he had some very exciting news about his involvement in one of the more lucrative fields in high tech today.
But first, you may recall that when we spoke last Dec. 7, I noted that I have followed Frank’s career for many years because he ranks as one world’s leading experts on anything involving metals and mining.
He serves as the CEO and chief investment officer at U.S. Global Investors(Nasdaq:GROW). It’s a boutique investment management firm, specializing in actively managed equity and bond strategies.
As impressive as his title is, it only scratches the surface of why I think he is a visionary leader.
Frank also ranks as a leading expert on high tech. And his latest venture combines those two parts of his personality with the promise of huge payouts for investors.
Indeed, Frank has just become the chairman of a fast-moving nano-cap that is using artificial intelligence (AI) to disrupt the centuries-old mining sector.
If the conflicting news about the markets and economy have you a bit up in the air, you are not alone.
Fact is, with the first quarter now in the rear-view mirror, the headlines are all over the place.
We’re seeing stories that suggest a possible recession, rising inflation, and slowing growth, not to mention the prospect of more trade conflicts with China.
I’ve been in the market for 40 years now, and even I sometimes find my head spinning from information overload. Fortunately, I’m a disciplined and focused investor who has learned to tune out all that noise.
This is on my mind these days because I recently returned from Money Map Press’ Black Diamond conference for our elite members.
As savvy as this group of folks are, many of them had the same types of burning questions millions of other people who are in the markets have. I was glad to answer as many as I could.
And that got me to thinking… many Strategic Tech Investor readers probably have the exact same questions.
That’s why today, I’d like to do the same with you. I’ve pulled out some of the popular questions I received at the conference, and am answering them for you now.
MasterCard Inc. (NYSE:MA) is a tech-savvy leader in processing credit card transactions. And Goldman Sachs ranks as one of Wall Street’s top investment banking firms.
More to the point, the new Apple card should be a hit with the key demographic group from 18 to 34. These are mobile-centric consumers who are used to shopping, investing, ordering rides and food, and sharing photos right from their smart phones.
Apple is onto something big here. I believe “Generation M” – my term for young folks who seem to have been born with cell phones in hand – will find this wildly appealing.
But as much as I like Apple’s new product, I think there is a better way to capture the full upside that mobile commerce offers.
It’s an investment that’s nearly doubled the market’s returns so far this year. And it faces plenty of upside ahead…