Kris’ note: Yesterday, we introduced you to Jeff Brown, the founder of Brownstone Research, and former Silicon Valley tech executive. We like Jeff’s work because he turns a skeptical and inquiring eye to investing – just like we do.
Plus, Jeff is well-versed in cutting through the noise…
For example, after the March 2020 COVID crash, the mainstream press predicted an “economic dark age.”
While most investors panicked, Jeff told his readers to “go shopping” in tech stocks… leading to a staggering 124% average return on closed positions for his Near Future Report letter.
But the gains aren’t over yet. He says there’s a new type of investment that should be on your radar for 2021. And we have the chance to get in at a discount right now.
By Jeff Brown, editor, The Bleeding Edge
In March 2020, we experienced one of the worst market crashes in recent history.
In the wake of COVID-19, governments instituted strict economic lockdowns. Investors panicked from all the uncertainty.
And all the major indices were in free fall.
On March 9, the Dow experienced its largest one-day plunge in history up to that time. But that record was broken on March 12… And then again on March 16.
That’s right. Three of the biggest one-day losses for the index all happened in March 2020.
The mainstream press was predicting an “economic dark age.” But I knew better.
I told my readers that we should absolutely not panic.
Here’s what I said to all my subscribers on March 17 of last year:
First of all, and most important, things are absolutely going to get better. I know it’s a very uncomfortable time in the market.
In fact, I can remember in the past 45 years only three times that were like this.
I’m talking about the notorious Black Monday, the period right after the tech bubble bursting, and of course during the financial crisis of 2008 and 2009.
But one thing is consistent with all three of those crises. They were some of the best times to invest in the stock market.
They provided the best opportunities for the largest gains.
These conditions drove me to make what was probably a surprising announcement. We removed all our stop losses. And we even took the opportunity to “go shopping” for some incredible companies trading at a relative bargain.
That was a controversial decision. I got pushback from several readers. Some of my colleagues even disagreed. But I knew it was the right decision.
By the end of 2020, our model portfolios had more than rebounded.
In my large-capitalization research service, The Near Future Report, we closed out the year with an average return of 80% on open positions. And we enjoyed a staggering 124% average return on closed positions.
It wasn’t that we were lucky…
We simply found investments that could work for us during this historic downturn. And we kept the positions we knew would continue to hold great value – whether the market rebounded in the near-term or not.
We can see now that predictions of an “economic dark age” were overblown. And my thinking remains the same today.
And much like I saw opportunities to invest after the crash…
I see another special opportunity shaping up right now.
Tech Stocks Soared in 2020
Despite the March crash, 2020 was a record year for gains in tech stocks.
As regular readers of my daily e-letter The Bleeding Edge know, the whole technology sector experienced a huge boom based on the trends the pandemic accelerated. These included remote work, contactless transactions and deliveries, video games, distanced learning… and many more.
It was suddenly much safer to work from home. We relied on Zoom calls to communicate with our family members. Many of us even had our groceries delivered to avoid the crowds.
After March, these innovations became absolutely essential.
Tech stocks were suddenly immersed in one of the biggest bull markets in history.
And it’s a moment that I’m proud to say my readers were able to capitalize on. Our foresight has paid off.
Let’s consider Square…
Square is a company that enables users to send digital payments across the world.
Because of the pandemic, businesses and consumers were rushing to adopt digital, contactless transactions.
And thanks in large part to Square’s Cash App, this stock was a great way to play this trend.
We’re up over 171% with Square as I write this. And notice how the bulk of the returns came after the economic lockdowns were put into place.
Imagine if we had sold Square during the fear-induced sell-off? That return would have been off the table.
Or consider DocuSign…
DocuSign’s technology allows us to electronically sign documents without ever visiting an office or handling physical paperwork.
It’s been a great stock to own.
And right now we’re showing returns of more than 269% on this one position. And again, look where we see the sharp incline in the share price. The stock took off in the months following the economic lockdowns.
These two companies represent just a fraction of the huge gains tech stocks have seen over the past year.
And we need only look at some of the best-performing stocks of last year to realize how big the tech stock trend really is.
Advanced Micro Devices returned over 99% by year’s end… NVIDIA yielded 121% in gains for the year.
And companies like PayPal and Tesla brought in triple-digit returns over the same period.
As you can see, any investor would’ve done well placing even a small stake in one of these companies during the pandemic.
But in a market like today… with tech stocks like these at all-time highs…
There’s a new type of investment that I believe will soar in 2021…
And even better, I believe companies in this space could become the next Square or DocuSign.
And I want to ensure you don’t miss out on the opportunity taking shape right now…
The Next Way to Invest in Tech
I first started studying this unique opportunity about 15 years ago.
But it’s only over the last year that my research has finally borne fruit.
And now is the perfect time to stake your claim in this market.
Over the past year, some of the biggest banks and hedge funds in the world have started running into these investments.
Citigroup, Goldman Sachs, and JPMorgan Chase have seen their revenues increase between 46% and 73% thanks to their investments in this market.
What’s more – we have the chance to get in at a discount right now.
Government action has led to some scary headlines, spooking many investors into selling. That’s dropped prices in this space… meaning this is the perfect moment for us to get into position.
But time is of the essence. The chance to capitalize on this trend won’t last for long.
That’s why I’ve put together an Emergency Briefing to tell you all about the investment trend taking shape.
On Wednesday, May 26, at 8 p.m. ET, I’ll tell you all about how this little-known investment vehicle is driving profits in the tech sector this year.
If you’d like to join me, please make sure to sign up right here.
You won’t want to miss out. That night, I’ll give you all the tools you need to spot the best investments in this fast-growing market.
I hope to see you there.
Editor, The Bleeding Edge