The next best thing to investing with hindsight

Wednesday, 25 October 2017
Melbourne, Australia
By Bernd Struben

  • What’s so important about 1 November?
  • Changing the world
  • Mailbag

In yesterday’s Port Phillip Insider, we looked at some ground-breaking research into blockchain technology.

Research carried out over the past three months by crypto expert, Ryan Dinse. (If you missed yesterday’s edition, you can bring yourself up to speed here.)

Now if you’re a technophobe, don’t worry.

Ryan makes a point of explaining his work in a way that everyone can understand.

You may know blockchain as the technology that bitcoin and every other crypto is based on. But Ryan’s research has nothing to do with digital currencies.

It’s all about stocks.

Specifically, which stocks are set to gain the most from what he calls the ‘blockchain collision’. A collision that’s about to happen on 1 November.

Yesterday Ryan published his research for the first time. And he launched a new investment service to capitalise on the phenomenal gains he sees coming for a few select companies.

Stocks that could more than double in November. And enjoy longer term gains in the thousands of percent. (Details here.)

That’s a big claim. But after reading Ryan’s reports I think he could be erring on the conservative side.

More after the markets.

Markets

Overnight, the Dow Jones Industrial Average closed up 167.90 points, or 0.72%.

The S&P 500 gained 4.15 points, or 0.16%.

In Europe, the Euro Stoxx 50 index finished up 1.82 points, or 0.05%. Meanwhile, the FTSE 100 climbed 0.03%, and Germany’s DAX index gained 10.05 points, or 0.08%.

In Asian markets, Japan’s Nikkei 225 index is up 34.54 points, or 0.16%. And China’s CSI 300 is up 0.24%.

In Australia, the S&P/ASX 200 is up 5.79 points, or 0.10%.

On the commodities markets, West Texas Intermediate crude oil is US$52.48 per barrel. Brent crude is US$58.33 per barrel.

Gold is trading for US$1,276.34 (AU$1,641.60) per troy ounce. Silver is US$16.93 (AU$21.78) per troy ounce.

One bitcoin is worth US$5,529.79.

The Aussie dollar is worth 77.75 US cents.

What’s so important about 1 November?

The business of collecting and processing data has exploded as ever more people tune in on ever more devices. And that trend is only going to accelerate.

You’ve probably heard of the Internet of Things. It refers to a fully connected world. Your TV, refrigerator, car, aircon, lights, Fitbit — everything — is set to get hooked up to the internet. If it’s not already.

Meaning someone — think Google, Facebook and the other tech giants — is busily devouring that data. And turning a hefty profit from it.

But it’s not just devices.

Think about your rewards cards. Even if you pay cash, that data is collected and used for marketing and other research purposes. And if you pay with credit cards…well that data goes straight to your bank.

Every purchase you make. Every place you visit. Every website you browse. Every medical condition you have treated. Every show you watch. Every piece of data has the potential to be collected, analysed and monetised.

It’s a big and rapidly growing business.

The market for cloud computing alone has grown from US$7 billion to US$160 billion in just 10 years. According to Forbes, that only represents 65% of current data centre traffic.

As I write this, big data remains largely in the hands of the big corporations. And some of that data is quite personal. There’s nothing illegal going on there. It’s all in the fine print of the terms and conditions none of us read before ticking the ‘get-on-with-it’ box.

But a lot of today’s data collection is still limited by privacy issues. For good reason. People are obviously hesitant to share their medical and financial records or daily travel history, for example.

Now all that’s about to change in what Ryan calls the ‘blockchain collision’. On 1 November — next Wednesday — in fact.

Ryan expects this to put a rocket under the billion-dollar data analysis business. And open up the door to a few smaller companies to join the lucrative party.

Over the past few weeks he’s narrowed down his list to three companies positioned in the right place, at the right time to make the most of the upcoming opportunity.

Here’s what Ryan writes:

We’re at a turning point in history. A turning point that will only be clear in hindsight. But as you know, you can’t invest in hindsight.

That’s why these companies make for excellent investments today. And why only a limited amount of people have realised how big these recent developments will be.

If you could invest with actual hindsight, you’d have a 100% guarantee of success.

Of course, there is no such guarantee in real life. Every investment carries its own level of risk.

But having read Ryan’s research and stock reports cover to cover, I can tell you this is the next best thing to investing with hindsight.

You can decide for yourself. Check out his ground-breaking work here.

Changing the world

In a sign of just how widespread blockchain is becoming, Saudi Arabia’s Islamic Development Bank (IDB) is using the technology to develop new Sharia-compliant financial products.

Sharia law, as you may know, states that people and institutions must work for their money. Lending money just for interest payments is strictly prohibited. Speculative investments are also forbidden.

But that doesn’t mean Saudi Arabia’s Muslim population is averse to making money. Far from it. And blockchain technology may open a new avenue for them.

From CoinDesk:

According to Reuters, the Islamic Research and Training Institute has struck an agreement with two startups – Ateon and SettleMint, the latter of which is based in Belgium – to perform technical feasibility studies ahead of any deeper research and development. SettleMint published the news about the deal on its official blog earlier this week…

While it’s unclear what specific types of products might ultimately consider deploying, the group reportedly said that it was interested in asset exchanges that can settle in near-instant time.

Matthew Van Niekerk, CEO and founder of SettleMint, said in a statement:

“We are very excited to be able to contribute to this project. One of the core values of SettleMint has always been to change the world for the better, and by using the blockchain technology to further financial inclusion and development of the 57 member countries, fits our ambitions to the letter.”

According to the statement by SettleMint, blockchain smart contracts can help automate the contractual processes for Islamic institutions while “alleviating the additional administrative and legal complexities as well as redundancies associated with Sharia-compliant financial products.“’

We may not do much with Sharia finance here in Australia. But it is a huge industry.

According to the Gulf Times, the global sukuk (Islamic bond) market sits at US$350 billion.

And tiny blockchain players are already making moves to get a piece of the action.

Mailbag

Comments, questions, contrarian ideas?

Send them to letters@portphillipinsider.com.au.

We’ll publish your letters if we think they’ll be of interest to your fellow readers. Don’t worry, we’ll only use your first name.

Cheers,
Bernd