Published March 21, 2017

The Next Megatrend Has Begun…

By Justin Spittler

There are countless ways to get rich investing.

You can buy and hold stocks. You can trade options. You can speculate on small gold miners.

You can also bet on “megatrends.”

These are the trends that reshape the world. They often play out over years, sometimes decades.

If you can get in front of one of these trends, you can make a fortune…

Just imagine if you had bought Apple right after Steve Jobs announced the first iPhone.

This was big news back in 2007. But not many people honestly thought we'd all be walking around with supercomputers in our pockets a decade later.

If you could have seen this coming, you would have bought Apple’s stock in a heartbeat.

You could have turned $10,000 into $107,363 in just over a decade.

You could have made even more money anticipating the rise of online shopping.

Let’s say you bought Amazon in 2001 when it was trading for under $6.

A small investment of $10,000 would now be worth more than $1.4 million.

• These are staggering returns…

If you bought either of those stocks back then, your life would probably be a lot different.

Maybe you’d already be retired. Maybe you’d own that beach house you always wanted. Maybe you’d have enough money in the bank to put your grandchildren through college.

Unfortunately, most investors never pocket these kinds of gains.

They wait until a company like Amazon is a household name before they buy. By then, the stock’s already up 1,000%. The opportunity of a lifetime has passed.

But there’s good news.

New megatrends are being born all the time.

Today, I’m going to tell you about one megatrend that Casey Research has been stalking for years. This emerging industry will soon change your life in ways you never imagined.

• I’m talking about driverless cars…

A driverless car is exactly what it sounds like. It’s a car that drives itself.

Just like a “normal” car, a self-driving car can accelerate, turn, and brake. It can even adjust to icy road conditions and avoid obstacles like a cat running across the street.

Now, I know this sounds like science fiction.

But consider this…

In 2014, a BMW 5 Series drove itself down the Autobahn in Germany at over 100 miles per hour. The next year, an Audi A7 drove itself from San Francisco to Las Vegas and back.

It’s now only a matter of time before you see driverless cars on your morning commute. Heck, you might even take one to work.

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• America’s most iconic companies are battling over this industry…

Just last week, chipmaker Intel (INTC) shelled out billions to buy Mobileye (MBLY).

Mobileye is an Israeli technology company. It develops “vision-based advanced driver assistance systems.” In other words, it makes the software that communicates with the "eyes" of self-driving cars (i.e. cameras and sensors) and warns drivers of possible hazards. The company also has key relationships with General Motors, Volkswagen, and Honda.

Intel paid $15.3 billion for Mobileye. That’s 34% more than Mobileye was worth at the time the acquisition was announced. It's the second biggest acquisition in Intel’s storied history.

• This tells us that Intel is serious about self-driving cars…

But it’s certainly not the only major U.S. company vying for a slice of this emerging industry.

Chris Wood, editor of Extraordinary Technology, explains:

We’ve seen a number of deals like this.

Last March, General Motors bought the self-driving car startup Cruise Automation for $581 million. In August, Uber acquired self-driving truck startup Otto for $680 million. Then in October, Qualcomm shelled out $39 billion to buy NXP Semiconductors. This was the second biggest technology acquisition in history.

In short, Intel needed to make this acquisition to stay competitive.

But here’s something interesting… Intel is now battling companies that it never used to compete with.

According to Chris, it won’t be long before it’s hard to tell the difference between a carmaker and a technology company:

The lines between these two industries gets blurrier every day.

But this actually makes perfect sense.

Self-driving cars use all sorts of cameras and sensors, sophisticated software, and GPS. To build one, a company has to have a mastery of so many different technologies.

Because of this, mergers, acquisitions, and partnerships are the only way for companies like Intel to quickly move forward in this space.

• By now, you can see what a huge opportunity this is…

The million-dollar question is…how do you make money off self-driving cars?

Unfortunately, it’s not easy.

Now that Intel owns Mobileye, there aren’t any “pure plays” left in the space. But there is one small-cap company you should know about. Chris explains:

Covisint (COVS) helps cars access the internet. It connects them with devices that help with navigation, roadside assistance, speeding and road condition alerts, equipment diagnosis, and service scheduling.

This is critical. After all, self-driving cars need to talk to each other and surrounding infrastructure like traffic lights to reduce the number of accidents.

In short, Covisint could play a key role in self-driving-car revolution. But that doesn’t mean you should buy it now. According to Chris, it’s still a gamble:

Covisint is a big growth opportunity. But the company hasn’t been able to hit its revenue targets recently. I want to see the company hit its own projections before buying in.

Until that happens, keep Covisint on your radar. It could be a great play down the line.

I also encourage you to test drive Extraordinary Technology, Chris' research advisory dedicated to technology stocks with massive upside. Every month, Chris dives into a new technology megatrend.

In the last year alone, he’s told his readers how to profit from solar energy, cybersecurity, and artificial intelligence. You can learn about his newest money-making opportunity by watching this brand-new presentation.


Doug Casey on “Taxing Robots”

Justin’s note: Yesterday, you heard Doug Casey’s candid thoughts on the political correctness movement.

Today, we have another short interview with Doug to share with you. In the excerpt below, Doug tells us what he thinks about Microsoft founder Bill Gates' idea to “tax the robots.” As usual, Doug doesn’t hold back.

We hope you enjoy.


Justin: Doug, I recently read that Bill Gates thinks the government should tax robots the same way that humans are taxed. Gates spelled out his “logic” in a recent interview:

Right now, the human worker who does, say, $50,000 worth of work in a factory, that income is taxed and you get income tax, social security tax, all those things. If a robot comes in to do the same thing, you’d think that we’d tax the robot at a similar level.

Gates made billions of dollars leveraging the power of technology. Shouldn’t he, of all people, know that “taxing the robots” will only slow technological progress? What’s your take on this?

Doug: It’s wrong on so many levels. It’s wrong on every single possible level.

In the first place, talking about Bill Gates, he’s obviously a business genius and he knows a lot about computer technology. Okay, that’s great. But he’s also what I’d call an “idiot savant.” In other words, he’s very good at one or two things, a lot like Dustin Hoffman’s character in the movie Rain Man. He’s an idiot at almost everything else—from his charitable endeavors to his political and economic opinions. I presume that he’s the personality type that, during the industrial revolution, would’ve tried to tax every new innovation that came up. The King needs revenue! We can’t create unemployment among farmers and weavers with these new-fangled labor-saving machines!

In fact, innovations and new technologies are exactly what increases the standard of living of the average person, and advances civilization itself. But if you make them uneconomic or less economic by taxing them or regulating them, then many or most of these things won’t happen, or won’t happen to a great degree. It’s economic idiocy. And destructive of the standard of living of the average man. It’s a crime against humanity.

And there’s an additional reason. Taxing directs more revenue and income towards the State. Any sensible person, any person that wants to help his fellow man, wants to deny revenue to the State, not tax something to give more revenue to the State. They’ll misallocate and do destructive things with it.

It’s certainly one of the most stupid things that I’ve heard said in recent years.


Regards,

Justin Spittler
Delray Beach, Florida
March 21, 2017

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