A once in a generation opportunity

Thursday, 16 May 2019
Adelaide, Australia
By Bernd Struben

  • ‘Like nothing we’ve ever seen’
  • ‘Why Trump Won’t Be Allowed to Mend Fences with Putin’

Wealth Eruption editor Harje Ronngard tells me it’s going to be the most disruptive technology advancement in 27 years.

He also tells me that China has already spent $24 billion on building the infrastructure to support this new tech rollout. And that they’re likely to spend $411 billion more over the next 10 years.

Any guesses?

If you said 5G, give yourself a gold star.

In case you’re not familiar with the term, 5G stands for fifth generation. As in the next incarnation of today’s 4G wireless internet networks.

I’m not sure why we can’t just call it ‘fifth generation’. Probably a bit too wordy for the younger generation. The same reasoning that saw Kentucky Fried Chicken become KFC. And National Geographic become Nat Geo. And Game of Thrones devolve into GoT. And…

Sigh…

Leaving my old man rumblings behind, 5G is coming to Australia. Soon. And it promises to turbocharge mobile internet speeds by a factor of hundreds.

Unfortunately for Chinese telecom giant Huawei, its own 5G platform was banned from Australia by Malcolm Turnbull, fearing national security implications. That’s despite China’s $24 billion 5G cash splash — or more likely because of it.

Now Donald Trump, as widely expected, is following suit.

From The Australian:

Donald Trump has declared a national emergency over threats to US technology as he effectively banned China’s Huawei from the US, signing a sweeping executive order to ban Chinese telecommunications equipment on national security grounds.

The order… will have the effect of shutting out Chinese telco giants Huawei and ZTE from involvement in the US’s next generation 5G mobile technology and other technologies…

Although the order is widely seen to be directed against China it does not mention China or individual companies by name…

US intelligence agencies have determined that China’s state-owned Huawei poses a security risk to the US because of China’s ability to use the company’s technology to gather intelligence.’

Huawei officials, as you’d expect, are outraged and insulted. And they’re willing to pinky swear that their company would never, ever, ever spy for the Communist Party.

That may be so.

But when you consider all of the applications for 5G, you can understand why many Western nations are sceptical of that claim.

The faster speeds and much quicker response times of 5G mobile networks are expected to revolutionise industries as diverse as remote surgeries, self-driving car networks, and the growing trend towards the internet of things (yes, I know…it’s IoT!). Not to mention enabling you to download your favourite movies in a matter of seconds.

The graphic below offers you a good image of just how pervasive 5G network technology is about to become.



chart image
Source: EMF Explained
Click to enlarge

Most Aussies don’t yet fully appreciate the massive impact 5G will have on the way we work, live and play. Many just want faster download speeds on their phones. And they’re willing to pay for it.

This headline comes from The Australian, ‘Eager early 5G adopters ready to pay up to $23 per month extra’. The article notes:

According to the [Ericsson ConsumerLab] study, almost a third of Australian consumers will change providers if their telco does not switch on 5G within six-months of other providers.

It also said local consumers, especially the early adopters, were willing to pay extra to use 5G services. Ericsson pins the median 5G price premium at $11, with Australian smartphone users willing to pay 20 per cent more for fifth-generation services, and early adopters as much as 42 per cent more than they pay for a current $50-a-month 4G plan.

That will be good news for Australia’s telcos, like Optus and Telstra, who’ve already spent billions of dollars on 5G infrastructure.

But neither Optus or Telstra look to be the really big winners with the coming ‘5G invasion’, as Harje calls it. They may well rake in more revenue. And their share prices could benefit. But it’s unlikely 5G will see their stock rise 300% anytime soon.

That’s why Harje targeted the smaller end of the market when looking for companies that stand to gain the most from the 5G rollout. After exhaustive research, he narrowed the field down to two.

Two 5G stocks he believes can deliver you up 300% gains.

You can get all the details — including the risks — right here.

Now a look at the markets.

Markets

Overnight, the Dow Jones Industrial Average closed up 115.97  points, or 0.45%.

The S&P 500 closed up 16.55 points, or 0.58%.

In Europe, the Euro Stoxx 50 index finished up 21.40 points, or 0.64%. Meanwhile, the FTSE 100 gained 0.76%, and Germany’s DAX closed up 107.95 points, or 0.90%.

In Asian markets Japan’s Nikkei 225 is down 163.45 points, or 0.77%. China’s CSI 300 is up 0.08%.

In Australia, the S&P/ASX 200 is up 27.50 points, or 0.44%.

On the commodities markets, West Texas Intermediate crude oil is US$62.36 per barrel. Brent crude is US$72.14 per barrel.

Turning to gold, the yellow metal is trading for US$1,296.11 (AU$1,872.45) per troy ounce. Silver is US$14.78 (AU$21.35) per troy ounce.

One bitcoin is worth US$8,345.97. That’s another 3.3% gain over the last 24 hours. Enough to put bitcoin up 59.9% over the past month.

(More on bitcoin below. Or click here for all the latest crypto investment advice now.)

In the world of fiat currencies, the Aussie dollar continues its slow slide. One dollar will now get you 69.22 US cents.

‘Like nothing we’ve ever seen’

The past several months’ rally has seen bitcoin’s market cap soaring.

According to CoinMarketCap it now stands at US$146.6 billion (AU$211.8 billion). Not quite enough to pay off the Aussie government’s debt. But it would make a nice down payment!

As mentioned above, bitcoin is up 59.9% in the past month alone.

Have look at the 30 day chart below:



chart image
Source: CoinDesk
Click to enlarge

You don’t need to be an expert in technical analysis — I’m certainly not — to recognise the bullish trend here. Namely a series of higher lows and higher highs throughout the past month.

Little wonder then that crypto analyst Ryan Dinse wrote to subscribers of Secret Crypto Network yesterday that ‘bitcoin remains one of the best risk/reward bets you’ll ever see in your lifetime.’

For investors still sitting on the sidelines, he suggested it may be time to get off their duffs. ‘Imagine being a believer in bitcoin and having to buy back in at $20,000-plus after the immense opportunity over the crypto winter.’

I’m sure those are exactly the kinds of thoughts passing through many crypto believers minds right now. Not to mention plenty of investors who may remain sceptical.

Having already missed out on a 161% price surge since the recent 16 December low, FOMO (fear of missing out) is likely to see more undecided investors take the plunge. If that happens — as it did in 2017 — another 161% gain is certainly possible.

In fact, crypto guru Sam Volkering thinks its not just possible…it’s extremely likely.

Here’s what Sam wrote in today’s Money Morning:

This we believe is the early stages of another massive bull run in a “crypto cycle” that we’ve seen twice before and possibly may be looking at again…

The lesson we want you to take away here is to avert your eyes from the single focus on the price, price, price…of bitcoin and crypto. Understand from people like us who exist in this world that things are developing at such speed that long-term the potential of this is like nothing we’ve ever seen.

That last part from Sam is great advice. Though it’s not easy to follow.

Now I’d be remiss not to remind you of the inherent risks when investing in cryptocurrencies. While prices can double very quickly, they can get cut in half just as fast.

Never invest any money into cryptos — or the stocks for that matter — that you can’t afford to lose. And always make sure you’re as well informed as possible before investing your hard earned money.

For what I believe is the best crypto investing advice available in Australia today, go here.

Finally, here’s the latest from The Australian Tribune:

‘Why Trump Won’t Be Allowed to Mend Fences with Putin’

The mainstream media has been surprisingly quiet on Russia in recent weeks. But we expect that to change as Deep State forces move to counter any improvements in relations between Russia and the US.

There’s big money to be made in continuing the Cold War foes’ mutual antagonism. Without that the...’

If you’re fed up with sanitised, politically correct dogma cut and pasted from one mainstream source to another then The Australian Tribune is for you.

And it’s absolutely free.

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You can visit our website at https://www.theaustraliantribune.com.au/ to read the complete article above now.

Cheers,
Bernd