"" is an online presentation by well-known and respective investor and consultant, Jeff Brown. In this presentation, he is advertising his newsletter service, called the . Furthermore, the stock he is reviewing and advising on in the online video is a company that is in the innovation area and makes semiconductor chips. What is a semiconductor chip? It's a gadget made of interconnected electronic components that are engraved or imprinted onto a tiny piece of semiconducting product, such as silicon or germanium. A semiconductor chip smaller sized than a fingernail can hold countless circuits. Generally, these are just called "chips." This business has actually designed a chip that will be utilized to access the 5G network which is currently being set up in lots of areas on the planet (exponential growth).
This will impact both our professions, how we buy things online, and how we communicate. Brown goes over that the biggest impact will be on "technologies of the future." What are "innovations of the future"? Some examples would be: autonomous automobiles, the Web of Things (Io, T), hologram innovation, robotic surgery, language translation without delays, augmented truth, and virtual reality. That's a lot! But it will likewise influence on things we use every day. The biggest of which is our smartphones. For example, Samsung has currently begun including 5G capability to its brand-new phone releases. In truth, Jeff showcases one that can utilize 5G.
A rarely known company that might have a monopoly over the vital chip. Brown states that the demand for those chips by other phone producers might severely improve the chip maker's earnings and result in a strong rise in its stock cost. Up until now, huge tech business like Samsung, Huawei, and Apple have actually positioned orders for the highly in-demand 5G chips. With these important collaborations in location, its stock might soar in the next couple of years as strong need for 5G-capable smart devices greatly rises. Brown states that by the time 5G reaches mass adoption worldwide when approximately 250 million gadgets will be acquired, the obscure company might see its earnings reach $3.
Van Bryan here, Jeff Brown's long time managing editor. Welcome back to Jeff's 2021 prediction series. Over the next few days, Jeff is sharing his ideas on the year that was and offering a few forecasts for the year ahead. For today's Bleeding Edge, I took a seat with Jeff to discuss what a Biden administration could suggest for the high-technology sector and the wider equities market. Check out on Jeff, let's rely on the election. Other than COVID-19, it was most likely the most spoken about story of the year. You were on record anticipating that President Trump would win reelection. Can you bring readers up to speed? That's right.
And as I stated at the time, that wasn't a political endorsement. I understand the president can be a polarizing figure. This was just the conclusion I pertained to based on my analysis - korean actress. And what my analysis was revealing was that the policies pursued by the existing administration had actually created one of the most robust economies in current history. Specifically, I believe there were four key pillars: Decreasing business and middle-income taxes Cutting unwanted policy Reinvesting in American manufacturing Renegotiating unfair trade policies with America's trading partners We don't have time to talk about every one of these in information. I really composed a whole report on this topic previously this year - brownstone research stock.
Before COVID-19, unemployment was at a 50-year low. The U.S. wage and wage development rate had actually approximately doubled from late 2016 (democratic republic). And the administration was tackling some unjust trade practices and copyright theft that had been disregarded for decades. Investors had a lot to be appreciative for. The three major indices saw amazing growth throughout the very first few years of the Trump administration (tech stocks). However now election night is behind us. There are still several legal obstacles being thought about, but for now, it appears that Joe Biden will be the next president of the United States. What are the ramifications for the innovation markets? You're right.
We'll need to wait to see what takes place there. However for now, let's assume Joe Biden takes workplace on the 20th of January. What does that mean for the high-technology sector? The message I wish to deliver to readers initially and foremost is this: No matter who is president, innovation and biotechnology are going to have an incredible year in 2021. I've invested 35 years as a technology financier and near to thirty years as a high-technology executive. And I have actually never seen the confluence of innovations that we are witnessing today. We have a mix of developments happening in synthetic intelligence and artificial intelligence.
We have extensive, affordable, essentially unlimited computing power and storage. And we likewise have the release of innovative cordless technology with 5G. This is going to start a suite of brand-new innovation applications that would have been impossible even just a few months ago. And this is all taking place at the exact same time. [Make sure you check your inbox tomorrow afternoon. I'll be speaking to Jeff about the greatest 5G stories of 2020, and I'll ask him for his No. 1 5G prediction for 2021] This confluence is speeding up the rate of technological change. Each of these innovations affects the others.
It's not an intellectual shortcoming. It's just that our brains are not wired to think tremendously. And that's what we're going to see in 2021. Exponential growth is among the most effective forces in innovation investing. This type of growth slips up on us. It appears linear at first. However then there is a sharp "elbow," and the trend goes vertical. And the speed at which that occurs is why most don't find it till far too late. In hindsight, however, it's easy to area. That's why my objective is to help my readers invest in the most appealing tech companies right prior to that elbow - what is the legacy report predicting.
Could that have ramifications for stocks? Financiers are most likely familiar with the Tax Cuts and Jobs Act. It was the most significant tax reform law since the 1981 Reagan tax reforms. jeff bezos. Among the biggest things the law did was lower the corporate tax rate from 35% to 21%. That made American corporate taxes the most affordable they've been given that 1938. And one of the huge consequences of this was that corporations needed to decide what they would make with all the cash they were conserving. They primarily did two things. They bought new equipment, facilities, and research and advancement.
[Stock buybacks are when a business acquires its own shares and lowers the number of outstanding shares, hence increasing the value of staying shares (tech stocks).] Both things were terrific for equity rates and investors in American business - future report review. But if President Biden can press through greater corporate and personal tax rates, that would have an unfavorable impact. It'll lower intake and adversely affect the stock markets. We'll have to see if that happens or not. However that's why I'll continue to concentrate on the world of high technology in 2021. Believe about it. If a company provides an advanced item, service, or treatment, will it matter who is being in the Oval Office? It won't.
And if the markets do experience a dip throughout the next administration, that may be an excellent purchasing opportunity for some of the interesting business I have on my radar. I'll make sure to keep my subscribers published if there's any action we need to take. Thanks as constantly, Jeff. Anytime. Like what you're checking out? Send your ideas to [email protected] (jeff brown genome sequencing stock).
Coworker Jeff Brown is our go-to person for all things tech. He invested 25 years as a modern executive at some of the very best tech companies worldwide, like Qualcomm and NXP Semiconductors. And as an active and effective angel investor in early-stage tech companies, he has access to details the public never ever sees - white house. He's on the cutting edge, in the field, seeing things months or years before the crowd captures on. Our mission at The Daily Cut is to help spot market megatrends early on so you can profit ahead of the crowd. So today, we're sharing five of Jeff's tech predictions for 2021 - bleeding edge.
At the end of each year, I like to have a look at the big photo and predict what's coming simply around the corner - exponential tech investor. Long time readers of my work understand I follow the most amazing tech trends on the verge of mass adoption. That consists of things like 5G networks, biotech, synthetic intelligence (AI), and much more. These trends are experiencing rapid growth and creating extraordinary chances for financiers. I desire to make sure all my readers are prepared for what's next. So with that in mind, I'll share five things I see coming in the next 12 months Our new 5G (fifth-generation) cordless networks are a subject I have actually been covering for years now (melania trump).
Even with the COVID-19 pandemic raving, a remarkable 250 million 5G-enabled gadgets were still sold last year. But particularly in the second quarter, there were supply chain disturbances, producing hold-ups, and work blockages (jeff brown latest prediction). All of this eventually caused Apple (AAPL) postponing the release of the 5G-enabled i, Phone 12 by 2 months. Losing two months of manufacturing and sales really impacts how lots of 5G devices are offered in the fiscal year. When you think about that, offering 250 million units is amazing. More notably, the hold-ups the pandemic triggered created a lots of pent-up demand. That demand has now been pressed into 2021.
Which's not my only 5G forecast The 5G network rollout has three different stages. In Stage One, business and governments develop out the facilities of these new networks, including all the new towers and fiber-optic wiring 5G requirements. In Phase Two, 5G-enabled gadgets go on sale. 5G phones and other items start to reach consumers. In Phase Three, telecommunications business start using 5G services. That's when we start to see applications operating on 5G networks. Consider things like massively multiplayer video games over a cellphone. That's not possible with 4G. It will be with 5G. And my second 5G prediction for 2021 is that we will begin Stage 3 by this summertime.
But they will care if there are amazing applications they can access just with a 5G phone. So more and more consumers will purchase 5G phones to gain access to these applications - bleeding edge. That causes the advancement of more 5G apps (biotech stock). In truth, 5G is going to open up a suite of amazing applications: self-driving vehicles, the Web of Things, robotic surgery, and more. All of these technologies need 5G. The financial investment opportunities going forward will be massive. Stepping away from 5G, the next crucial innovation I anticipate growing in 2021 is CRISPR hereditary modifying. CRISPR represents "clustered frequently interspaced brief palindromic repeat." It's a mouthful.
At a high level, CRISPR can edit our hereditary makeup as if it were software. If there's a "typo" in software code, it can be disastrous. A program can crash or not function properly. CRISPR uses a similar idea but with our genetic code. "Typos" in our genomes can cause illness - self-driving cars. CRISPR can correct these "typos - united states." For several years, CRISPR was mainly a niche innovation that wasn't well understood. During that time, there were really only three business running in this space. However things are altering. CRISPR is no longer just theoretical. We're seeing actual results. We're dealing with diseases and seeing that this technology works.