Well, we’ve reached the last full week of the year, and we have many reasons to be merry.
The global vaccination is underway, with the Moderna vaccine officially being added to the effort this week. Congress looks set to pass a long-awaited and historic stimulus bill. Both of these events are creating a festive atmosphere in the markets this week.
Another big event happening this week: Dr. Gregor Bauer, one of the best technical analysts I know, sat down with Celeste Lindman for a very special conversation. They talked about “chain trades” and the strategy that has netted nine profitable trades in a row. Dr. Bauer shared knowledge that has made him one of the top traders in Germany in this exclusive Ask the Pros session.
To learn about chain trades and other insights that have made Dr. Bauer so successful, follow this link to catch a replay of his conversation with Celeste.
Where Next-Gen Technologies Collide
As my subscribers all know, I’m always looking out for tech sectors with upside and trying to learn as much about them as possible. It’s this thirst for knowledge and commitment to learning that has shaped my career as an investor.
One sector that fascinates me is space travel. The race for space is real and growing at a remarkable pace: UBS predicts the $400 billion dollar space industry will double to $800 billion by 2030.
Regular commercial space travel may be a few years away. But many of the major players are also heavily involved in another race underway: namely, to build the next generation of communication infrastructure known as ‘5G’.
The Race to Space… or for Better Cell Reception?
Imagine traveling from New York to Shanghai in 39 minutes using a cost-effective, sustainable system. Seems like the stuff of science fiction, but that’s exactly what Elon Musk is setting out to do with his company Space Exploration Technologies Corp., also known as SpaceX.
Along with developing a reusable rocket and launch system, Musk has his sights on dramatically reducing the time of air travel. With some 150 million passengers who take flights longer than 10 hours every year, this may be something to keep an eye on.
SpaceX is not publicly traded, but some well-known companies are getting involved to finance the company’s ambitious plans. However, some of those partners are more interested in cellphone reception and internet bandwidth than space travel.
In fact, Alphabet (NASDAQ: GOOG) and Fidelity Investment (NYSE: FNF) have invested $1 billion in SpaceX’s satellite business to support the next-generation global communications system known as 5G. The rollout for 5G communications began in 2019, and by 2025, there are projected to be more than 1.7 billion subscribers worldwide.
Also Orbiting 5G (via SpaceX)
Maxar Technologies Inc (NYSE: MAXR) is another space tech company that is getting involved with 5G through SpaceX. Together, the companies will be deploying a new generation of satellites made to image the Earth’s most active areas more frequently and at a high resolution.
Meanwhile, Iridium Communications (NASDAQ:IRDM), completed the last of its final launch of satellites with SpaceX last year. The multi-launch contract was the largest non-government customer for SpaceX, and included 75 satellites in low Earth orbit.
The second generation satellites, built by Thales Alenia Space (OTC: HO.PA) and integrated by Northrop Grumman (NYSE: NOC), will replace Iridium’s legacy fleet from Motorola and Lockheed Martin that launched 20 years ago.
Iridium recently announced the world’s first global, real-time maritime emergency service, launched using their satellite technology. The system began operating on Friday, December 11th, giving a real-time emergency response and rescue service that works anywhere in the world. It’s the only publicly traded company authorized to provide this kind of service.
Getting Into the Space Race via 5G
A lot of investors I know are not ready to get involved in the space race. I get their hangups: Virgin Galactic (NYSE: SPCE) is basically the only publicly traded company devoted to space travel.
There are of course, some well-known defense and aerospace contractors like Boeing (NYSE: BA) and Lockheed Martin (NYSE: LMT) on the forefront of space technology. But since they can’t buy shares of SpaceX, some investors think it’s best to keep their cash in their pockets for now.
While that may seem like a prudent decision today, keep in mind that Morgan Stanley predicts space travel will be a $1.1 trillion market by 2040…
In case you’d rather be early rather than wrong, consider checking out some of the space tech companies that also have their hand in 5G. Because 5G is already here – and it’s going to be a major tech story in 2021.
Don’t be surprised if some of these companies keep innovating until you can take a summer vacation on Mars.
Okay… I admit that may still be a few years away. But either way, make sure you never stop learning about new technologies. And like I always say…
I’ll catch you on the flip side,
Tom
P.S. Dr. Gregor Bauer joined Celeste Lindman for an exclusive ‘Ask the Pros’ conversation. They discussed “chain trades” and the strategy that has netted Dr. Bauer nine consecutive profitable trades in 2020.
You don’t want to miss this exclusive conversation. Follow this link to be a part of this investment revolution.