"" is an online presentation by popular and respective investor and consultant, Jeff Brown. In this presentation, he is marketing his newsletter service, called the . Additionally, the stock he is examining and recommending on in the online video is a business that is in the technology area and makes semiconductor chips. What is a semiconductor chip? It's a gadget made from interconnected electronic components that are engraved or inscribed onto a tiny slice of semiconducting product, such as silicon or germanium. A semiconductor chip smaller than a fingernail can hold millions of circuits. Typically, these are simply called "chips." This company has created a chip that will be used to access the 5G network which is currently being set up in many areas on the planet (tech stocks).
This will impact both our careers, how we buy things online, and how we communicate. Brown talks about that the biggest effect will be on "technologies of the future." What are "technologies of the future"? Some examples would be: autonomous automobiles, the Web of Things (Io, T), hologram innovation, robotic surgery, language translation without delays, enhanced truth, and virtual truth. That's a lot! However it will also effect on things we use every day. The most significant of which is our smartphones. For instance, Samsung has currently begun adding 5G capability to its new phone releases. In reality, Jeff showcases one that can use 5G.
A seldom understood business that may have a monopoly over the indispensable chip. Brown says that the demand for those chips by other phone manufacturers might badly boost the chip maker's earnings and lead to a strong rise in its stock rate. So far, giant tech business like Samsung, Huawei, and Apple have placed orders for the extremely popular 5G chips. With these essential partnerships in place, its stock might skyrocket in the next couple of years as strong need for 5G-capable smartphones greatly rises. Brown states that by the time 5G reaches mass adoption worldwide when up to 250 million gadgets will be acquired, the unknown company might see its earnings reach $3.
Van Bryan here, Jeff Brown's long time managing editor. Invite back to Jeff's 2021 forecast series. Over the next couple of 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 might imply for the high-technology sector and the wider equities market. Continue reading Jeff, let's rely on the election. Other than COVID-19, it was likely the most spoken about story of the year. You were on record forecasting 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 know the president can be a polarizing figure. This was just the conclusion I came to based on my analysis - the legacy report predictions. And what my analysis was revealing was that the policies pursued by the existing administration had actually created among the most robust economies in recent history. Specifically, I believe there were 4 essential pillars: Decreasing business and middle-income taxes Cutting unneeded guideline Reinvesting in American production Renegotiating unreasonable trade policies with America's trading partners We don't have time to discuss each one of these in detail. I in fact wrote a whole report on this topic earlier this year - black sea.
Before COVID-19, unemployment was at a 50-year low. The U.S. wage and income development rate had approximately doubled from late 2016 (future report). And the administration was taking on some unjust trade practices and copyright theft that had actually been ignored for decades. Investors had a lot to be glad for. The 3 major indices saw unbelievable growth throughout the first few years of the Trump administration (tech stocks). But now election night lags us. There are still numerous legal difficulties being considered, but for now, it appears that Joe Biden will be the next president of the United States. What are the implications for the innovation markets? You're right.
We'll need to wait to see what happens there. However for now, let's assume Joe Biden takes office on the 20th of January. What does that mean for the high-technology sector? The message I wish to provide to readers primarily is this: No matter who is president, innovation and biotechnology are going to have an amazing year in 2021. I've invested 35 years as an innovation financier and near to 30 years as a high-technology executive. And I have actually never ever seen the confluence of technologies that we are experiencing right now. We have a combination of developments taking place in expert system and maker knowing.
We have widespread, affordable, basically limitless computing power and storage. And we likewise have the deployment of innovative cordless technology with 5G. This is going to start a suite of brand-new technology applications that would have been difficult even simply a few months back. And this is all happening at the same time. [Make sure you check your inbox tomorrow afternoon. I'll be speaking with Jeff about the most significant 5G stories of 2020, and I'll ask him for his No. 1 5G prediction for 2021] This confluence is accelerating the rate of technological change. Each of these technologies affects the others.
It's not an intellectual imperfection. It's just that our brains are not wired to think exponentially. Which's what we're going to see in 2021. Exponential growth is one of the most powerful forces in innovation investing. This type of growth slips up on us. It appears direct initially. But then there is a sharp "elbow," and the trend goes vertical. And the speed at which that takes place is why most do not identify it up until too late. In hindsight, however, it's easy to area. That's why my goal is to assist my readers buy the most promising tech companies right before that elbow - toxic tech 5 tech darlings.
Could that have ramifications for stocks? Financiers are most likely familiar with the Tax Cuts and Jobs Act. It was the most substantial tax reform law considering that the 1981 Reagan tax reforms. jeff brown prediction for 2021. One of the greatest things the law did was lower the corporate tax rate from 35% to 21%. That made American business taxes the most affordable they have actually been since 1938. And among the big repercussions of this was that corporations needed to choose what they would finish with all the money they were saving. They mainly did 2 things. They bought new devices, facilities, and research study and development.
[Stock buybacks are when a business purchases its own shares and minimizes the variety of impressive shares, hence increasing the worth of staying shares (the legacy report predictions).] Both things were terrific for equity rates and financiers in American business - diplomatic relations. However if President Biden can push through higher business and individual tax rates, that would have an unfavorable impact. It'll decrease intake and adversely impact the stock exchange. We'll need to see if that takes place or not. But that's why I'll continue to focus on the world of high technology in 2021. Consider it. If a business uses a revolutionary product, service, or therapy, will it matter who is sitting in the Oval Office? It will not.
And if the marketplaces do experience a dip throughout the next administration, that may be a terrific purchasing opportunity for a few of the interesting business I have on my radar. I'll make certain to keep my customers posted if there's any action we require to take. Thanks as constantly, Jeff. Anytime. Like what you read? Send your thoughts to [e-mail protected] (jeff brown 2021 predictions).
Colleague Jeff Brown is our go-to person for all things tech. He spent 25 years as a modern executive at some of the very best tech business in the world, like Qualcomm and NXP Semiconductors. And as an active and effective angel investor in early-stage tech business, he has access to info the public never ever sees - angel investor. He's on the front line, in the field, seeing things months or years prior to the crowd catches on. Our mission at The Daily Cut is to assist area market megatrends early on so you can benefit ahead of the crowd. So today, we're sharing 5 of Jeff's tech predictions for 2021 - tech stock.
At the end of each year, I like to take an appearance at the huge picture and predict what's coming simply around the corner - biotech stocks. Longtime readers of my work know I follow the most interesting tech patterns on the brink of mass adoption. That includes things like 5G networks, biotech, artificial intelligence (AI), and a lot more. These patterns are experiencing rapid growth and developing amazing chances for financiers. I wish to make certain all my readers are gotten ready for what's next. So with that in mind, I'll share five things I see being available in the next 12 months Our new 5G (fifth-generation) cordless networks are a topic I have actually been covering for years now (korean actress).
Even with the COVID-19 pandemic raving, a remarkable 250 million 5G-enabled devices were still sold in 2015. However specifically in the second quarter, there were supply chain interruptions, manufacturing hold-ups, and work blockages (longtime readers). All of this ultimately led to Apple (AAPL) delaying the release of the 5G-enabled i, Phone 12 by two months. Losing two months of manufacturing and sales really affects how numerous 5G devices are offered in the calendar year. When you consider that, selling 250 million units is remarkable. More importantly, the hold-ups the pandemic caused created a lot of bottled-up demand. That need has now been pushed into 2021.
And that's not my only 5G prediction The 5G network rollout has three various stages. In Phase One, companies and federal governments construct out the facilities of these brand-new networks, including all the brand-new towers and fiber-optic electrical wiring 5G needs. In Phase 2, 5G-enabled gadgets go on sale. 5G phones and other products start to reach consumers. In Stage 3, telecom companies start providing 5G services. That's when we start to see applications working on 5G networks. Think about things like massively multiplayer video games over a mobile phone. That's not possible with 4G. It will be with 5G. And my second 5G forecast for 2021 is that we will begin Phase 3 by this summertime.
But they will care if there are amazing applications they can access just with a 5G phone. So increasingly more customers will purchase 5G phones to gain access to these applications - united arab emirates. That results in the advancement of more 5G apps (last year). In fact, 5G is going to open a suite of extraordinary applications: self-driving cars and trucks, the Internet of Things, robotic surgery, and more. All of these technologies need 5G. The investment chances moving forward will be massive. Stepping away from 5G, the next important innovation I anticipate flourishing in 2021 is CRISPR hereditary editing. CRISPR represents "clustered routinely interspaced brief palindromic repeat." It's a mouthful.
At a high level, CRISPR can modify our genetic makeup as if it were software. If there's a "typo" in software application code, it can be disastrous. A program can crash or not operate properly. CRISPR utilizes a comparable idea however with our hereditary code. "Typos" in our genomes can cause disease - korean actress. CRISPR can fix these "typos - black sea." For several years, CRISPR was mostly a niche technology that wasn't well understood. Throughout that time, there were actually just 3 companies running in this space. But things are changing. CRISPR is no longer just theoretical. We're seeing real results. We're dealing with diseases and seeing that this technology works.