Months before the election, I ignored experts who predicted catastrophic market crashes should the “wrong” party win the 2020 election.
But as I know, those predictions turned out to be so much hot air. The truth is that a Republican victory would have been a bullish catalyst for one corner of the market and a Democratic victory would have been a bullish catalyst for another.
The tight end that I saw coming but many of these experts didn’t make all the difference. The stock market loves a divided government in which no party can lead politics – especially taxes and spending.
The result, along with news of two effective coronavirus vaccines around the corner, sparked a massive rally, especially in technology stocks. The Nasdaq Composite, home of the technology in the market, has risen in excess of 1,000 points since its 30-day lows prior to the October election.
Of course, the last two administrations have driven incredibly strong and profitable growth in the technology sector. The Nasdaq Composite is up around 600% since January 2009.
Given the central, critical role tech will play in enduring the pandemic, recovering from it, and moving on through Biden’s tenure, the next four years could be even better than the last 12.
It could be some of the most profitable years for tech investors, and I recommend that we start here …
White House technical priorities from now through 2024
As uncomfortable as it may be, the economic impact of the pandemic could have been worse – if it hadn’t been for the technologies that allowed around 70 million workers to do their jobs remotely, and millions more to isolate themselves while keep them connected.
This has likely resulted in a permanent shift in the demand for technologies like cloud computing and video conferencing, and businesses like Zoom Communications Inc. (NASDAQ: ZM) from obscure companies to household names overnight – with a corresponding impact on share prices.
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Now the economy is recovering, of course, but the sheer size of the problem means the recovery is likely to dominate – entirely – the first year of Biden’s tenure. We know that an effective, widely used vaccine is imperative for that recovery.
We now have two vaccine candidates close to emergency approval. From then on, the problem becomes logistics. The government has nearly 330 million people to vaccinate, and getting those vaccines from A to B is going to be an enormous challenge – and with the US military lending a hand.
I believe drones will play a huge role in vaccine logistics and maybe even the “last mile”.
One of the best UAV stocks to own
Even so, at a good time, Biden will adopt drones, also known as unmanned aerial vehicles (UAVs). Keep in mind that IDC estimates US shipments of commercial drones will rise to 5.7 million by 2022. This corresponds to an increase of 216% compared to 1.8 million in the previous year.
According to PwC (PricewaterhouseCoopers), the total addressable market for commercial drones is $ 127.3 billion. Infrastructure and agriculture make up almost 60% of this.
The president-elect is expected to urge the FAA to grant more commercial licenses.
In addition, his former boss Barack Obama relied heavily on military drones to wage the war on terror. In those eight years America launched ten times more drone strikes against insurgents and terrorists than in the eight years under Bush.
That makes Aerovironment Inc. (NASDAQ: AVAV) a great double game. The company has decades of experience selling drones and systems to the Pentagon, but it also works with companies like farmers and 5G providers to bring them the benefits of unmanned aerial vehicles.
In the past three years, AVAV has increased its earnings by 21%. At that rate, it could easily double in less than 3.5 years.
Once vaccination and recovery have started in earnest, Biden’s team will no doubt want to quickly switch to another plank of their platform: green energy.
Renewable energies are tech’s new high-performance niche
During his campaign, Biden pledged to rejoin the Paris Climate Agreement and to make the American electricity grid climate neutral by 2035.
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The economic benefits of this transition in terms of job creation and GDP growth could be significant. Still, massive investments in wind, solar, water, biomass and nuclear power will be required. The Biden Harris campaign’s full energy plan is priced at $ 2 trillion.
Biden’s program plans to set up 500,000 charging stations for electric vehicles by the end of 2030 and to secure tax credits for the purchase of electric vehicles.
More specifically, the Biden government could well create a national solar incentive or mandate that complies with California’s requirement to build new homes with solar panels.
Even without this, analysts expect US solar systems to grow 42% by 2025.
The Israel-based manufacturer of solar inverters is a very lucrative game SolarEdge Technologies Inc. (NASDAQ: SEDG). Inverters are critical to providing usable solar energy. It doesn’t work without them.
SolarEdge makes some of the best inverters in the world.
Over the past three years, the company has increased its profits by an average of 30%. At this rate, they’re well on their way to doubling in 18 months without considering the impact of new Washington solar legislation.
And of course there’s the problem that presidents have been tenacious to one degree or another since Harry S. Truman lived at 1600 Pennsylvania Avenue.
Own a huge player in the second largest economy in the world
When in doubt, I mean China.
Trump pushed hard against Chinese telecommunications companies like Huawei or ZTE, which work in the West. He and his team feared they were Trojan horses for Chinese intelligence.
That worry won’t go away anytime soon, but where Trump has taken an almost relentlessly tough line against China, Biden has said words that he will try to cool things down a few degrees. According to interviews, his government plans to work to improve relations and cooperate where there is potential and apply pressure when he sees anti-competitive Chinese practices.
The harsh talk of the past four years hasn’t done much to calm China’s tech sector. it grows incredibly fast.
Much of this is due to China’s enormous population shifts. Between 2015 and 2026, a whopping 250 million people will have moved from China’s poor countryside to richer cities and the middle class.
Population size means tech-savvy consumers will power China’s $ 14 trillion economy, second only to the US. Unsurprisingly, China’s global pandemic has put consumers online like never before.
And a really great way to get involved in this action is with China’s e-commerce grandmaster. Alibaba Group Holding Ltd. (NYSE: BABA).
In the past year alone, Alibaba and its numerous locations processed a gross volume of $ 1 trillion. With 726 million active customers per year, Alibaba has more than twice as many users as the US.
Revenue for fiscal 2020 is an impressive $ 72 billion, up 31% year over year. On average, Alibaba is increasing its profit by 25% per year. At this rate, it will roughly double in just under three years.
And similar to the US, COVID-19 led to a huge surge in e-commerce, the cloud and fintech in China. These trends are not going away and Alibaba will remain a big winner there. Own this for the long term.
Before you get started, find out why the most successful investors put personal politics aside …
You see, whether you like him or not, a Biden administration will give tech investors plenty of opportunity – just like Trump and Obama. Additionally, you can learn how to leverage the most explosive stocks to potentially get 546% richer.
If we finally beat COVID-19, the economy will be back in full swing and unemployment will fall. Various policy priorities will help direct capital into new growth segments in technology. Whatever happens over the next four years, tech investors are likely to continue to smash the market.
My colleague Andrew Keene knocked the market down too … although it didn’t start that way. He had lived with his folks, but after developing the ultimate indicator he had a cool $ 2 million to play with.
And the crazy thing is, you can do it in less than 90 minutes a week. See how easy your life could be here …
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About the author
Michael A. Robinson is a 36-year-old Silicon Valley veteran and one of the top tech and biotech financial analysts to work today. That’s because Michael, as a consultant, senior advisor, and board member for venture capital firms in Silicon Valley, has privileged access to pioneering CEOs, academics and high-profile players. And he brings this whole world of “insiders” from Silicon Valley straight to you …
- He was one of five people involved in early $ 160 billion cloud computing meetings.
- He was there when Lee Iacocca and Roger Smith, the CEOs of Chrysler and GM, led the robotics revolution that saved the US auto industry.
- When cybersecurity became a national security focus, Michael was with McAfee CEO Dave DeWalt just before Intel acquired his company for $ 7.8 billion.
All of this means that the whole world is constantly looking for Michael’s insight.
In addition to a regular guest and panelist CNBCand Fox Business He is also a Pulitzer Prize nominated writer and reporter. His first book, Overdrawn: The Bailout of American Savings, warned people of impending financial collapse years before the word “bailout” became a household word.
Silicon Valley Defense Publications vie for his analysis. He worked for Defense Media Networkand Signal Magazine, as well as The New York Times, American company, and The Wall Street Journal.
And despite decades of experience, Michael believes that there has never been a moment like this.
Currently, medical breakthroughs that previously took years to develop are moving at record speeds. And that means we will quickly and furiously see highly lucrative biotech investment opportunities.
To help you capitalize on the historic opportunity in biotechnology, Michael created the Bio-Tech Profit Alliance.
His other publications include: Strategic tech investor, The Nova-X report , Bio-Technology Profit Allianceand Nexus 9 network.
… Read the full bio