Emergent-Industry Stocks Aren’t Slowing Down in 2020
Tech Stocks, Pot Stocks Soar
During the economic crisis brought on by COVID-19, there has been plenty of concern to go around. Aside from the public health and employment crises simultaneously spawned by the virus, many investors fled the stock market in search of safe-haven investments.
But here’s the thing: volatile markets have seen some of the strongest gains on the recovery. Emergent industries, especially given their volatile nature, have seen huge growth after the initial coronavirus scare. And that brings us to why tech stocks and pot stocks in particular are such solid investments in 2020.
The long and short of it is that, while volatile stocks are certainly risky, if a second wave of COVID-19 hits and sends the market tumbling once more, they are also the most prone to making huge recoveries.
Being able to time investments in these sectors correctly could pay off with gains of 50% and above in a matter of weeks or months. In other words, these are some of the most potential-filled stocks out there, even if there is a bit of risk involved with them.
The reason being, of course, that these stocks were already priced for the future.
Marijuana stocks, for instance, have long been the target of ridicule by haters and doomsayers pointing out that many marijuana companies have valuations that exceed the total available pot market globally.
But these reductive and facile arguments are just that: silly. Pot stocks are priced with the future total marijuana market in mind. And anyone who genuinely believes that we won’t see mass marijuana legalization spread around the globe in the coming years is living in a fantasy world.
The progress toward pot legalization both in the U.S. and abroad is inevitable. I say that with the utmost confidence. We will see marijuana legally sold in markets around the globe, and I’d bet that the vast majority of these markets will open in the coming decade.
In other words, it’s a multi-billion-dollar industry that’s essentially going to be summoned from the ether into existence within the next few years. That kind of opportunity only comes along a few times a generation, and never before have we had such certainty on how well the product will do.
Consider the multi-billion-dollar black market that’s been in operation for decades as the most intensive and comprehensive market research you’ll ever see. Pot is a product that people want and will pay handsomely for. Heck, they’ll even break the law for it.
So marijuana stocks are going to be just fine as we head into the future, even if several of them are down over the past 12 months.
Over the past three months, we’ve seen a different story, with many of our favorite pot stocks on the rise. Investors who have been reading Profit Confidential diligently in 2020 will note that I predicted exactly that. I foresaw a dip in the marijuana stock market followed by a quick recovery, advising readers to be on the lookout for the dip.
Chart courtesy of StockCharts.com
I anticipate that, if we see another huge surge in COVID-19 that requires the economy to enter another shutdown, we’ll see a mini-economic slump that will provide investors another opportunity to acquire some of the top pot stocks at low prices.
Furthermore, if we see the COVID-19 crisis end in a sudden manner (say, by way of a vaccine), then we could expect another surge in the stock market.
But marijuana isn’t the only sector set to see big gains; certain subsectors of the tech industry are similarly poised for big gains in the near future.
Both 5G stocks and artificial intelligence (AI) stocks are among my favorite tech stocks right now. And the reason is pretty obvious: they’re both slated to be multi-billion-dollar industries (arguably multi-trillion-dollar potential in the case of AI) in the near future. As such, abandoning these companies due to a few months of market panic would be unwise.
Like with marijuana stocks, we saw an uptick in value over the past three months as several of my top tech stocks surged.
Chart courtesy of StockCharts.com
And much like pot stocks, tech stocks are poised to see gains in 2020 no matter what happens with COVID-19.
Tech stocks are especially juicy right now, as I believe they will not see much decline (if any), even if another COVID-19 wave hits. While that does mean less opportunity to buy on the dip, it also means more stability for long-term investors.
AI stocks and 5G stocks are both set to see massive growth in the near future. Almost all industry analyses of these two sectors point to that outcome. So, while the current market conditions may not be the most frothy, investors will not likely abandon these companies any time soon, simply because they are so chock-full of potential.
In fact, I’d go as far as to say that AI stocks and 5G stocks are among the safest long-term stocks right now.
The key to making big money on the stock market is having vision. Whether that vision extends to a day or years ahead of market trends, ultimately having that vision and foresight will allow you to profit immensely.
Right now we know that AI stocks, 5G stocks, and pot stocks are all poised to see massive growth in the coming years. It’s a forgone conclusion. The only variables, really, are not so much in the if the gains will be big, but more in the when.
Many people, myself included, view these industries as having a real shot to explode in the first half of the 2020s. While COVID-19 has started this decade off on the wrong foot, it will likely just be a blip on the upward trajectory of some of the most revolutionary tech and drug industries to hit the market in years.