"" is an online discussion by popular and respective financier and advisor, Jeff Brown. In this presentation, he is advertising his newsletter service, called the . In addition, the stock he is examining and advising on in the online video is a company that remains in the innovation area and makes semiconductor chips. What is a semiconductor chip? It's a gadget made from interconnected electronic parts that are etched or imprinted onto a tiny piece of semiconducting product, such as silicon or germanium. A semiconductor chip smaller than a fingernail can hold millions of circuits. Typically, these are simply called "chips." This company has designed a chip that will be used to access the 5G network which is presently being set up in numerous areas in the world (social media).
This will impact both our professions, how we buy things online, and how we interact. Brown talks about that the greatest impact will be on "innovations of the future." What are "technologies of the future"? Some examples would be: autonomous automobiles, the Internet of Things (Io, T), hologram technology, robotic surgical treatment, language translation without hold-ups, augmented truth, and virtual reality. That's a lot! But it will also effect on things we utilize every day. The biggest of which is our smartphones. For example, Samsung has actually already begun adding 5G ability to its new phone releases. In reality, Jeff showcases one that can use 5G.
A rarely understood company that may have a monopoly over the important chip. Brown says that the need for those chips by other phone manufacturers might badly enhance the chip maker's earnings and lead to a strong rise in its stock rate. Up until now, giant tech companies like Samsung, Huawei, and Apple have placed orders for the extremely in-demand 5G chips. With these crucial partnerships in location, its stock could soar in the next couple of years as strong need for 5G-capable smart devices sharply rises. Brown states that by the time 5G reaches mass adoption worldwide when approximately 250 million gadgets will be acquired, the unknown company might see its profits reach $3.
Van Bryan here, Jeff Brown's longtime handling editor. Welcome back to Jeff's 2021 prediction series. Over the next couple of days, Jeff is sharing his thoughts on the year that was and providing a couple of forecasts for the year ahead. For today's Bleeding Edge, I sat down with Jeff to discuss what a Biden administration could imply for the high-technology sector and the broader equities market. Read on Jeff, let's rely on the election. Aside from COVID-19, it was most likely the most spoken about story of the year. You were on record predicting that President Trump would win reelection. Can you bring readers up to speed? That's right.
And as I stated at the time, that wasn't a political endorsement. I know the president can be a polarizing figure. This was simply the conclusion I concerned based on my analysis - democratic republic. And what my analysis was showing was that the policies pursued by the existing administration had created among the most robust economies in current history. Specifically, I believe there were 4 crucial pillars: Lowering corporate and middle-income taxes Cutting unwanted policy Reinvesting in American manufacturing Renegotiating unjust trade policies with America's trading partners We don't have time to discuss every one of these in detail. I really composed a whole report on this subject previously this year - biotech stock.
Prior to COVID-19, unemployment was at a 50-year low. The U.S. wage and salary growth rate had actually roughly doubled from late 2016 (exponential growth). And the administration was tackling some unfair trade practices and intellectual residential or commercial property theft that had been ignored for years. Financiers had a lot to be happy for. The 3 significant indices saw amazing growth during the first few years of the Trump administration (tech stocks). And now election night lags us. There are still numerous legal difficulties being considered, however for now, it appears that Joe Biden will be the next president of the United States. What are the ramifications for the technology markets? You're right.
We'll have to wait to see what takes place there. However for now, let's presume Joe Biden takes office on the 20th of January. What does that mean for the high-technology sector? The message I want to deliver to readers initially and foremost is this: No matter who is president, technology and biotechnology are going to have an extraordinary year in 2021. I have actually spent 35 years as an innovation financier and close to 30 years as a high-technology executive. And I've never ever seen the confluence of technologies that we are experiencing right now. We have a mix of breakthroughs happening in artificial intelligence and device learning.
We have prevalent, inexpensive, essentially endless computing power and storage. And we also have the release of revolutionary wireless technology with 5G. This is going to begin a suite of new innovation applications that would have been impossible even simply a few months ago. And this is all taking place at the same time. [Be sure you examine your inbox tomorrow afternoon. I'll be talking to Jeff about the biggest 5G stories of 2020, and I'll ask him for his No. 1 5G prediction for 2021] This confluence is accelerating the rate of technological change. Each of these technologies impacts the others.
It's not an intellectual imperfection. It's just that our brains are not wired to think significantly. Which's what we're going to see in 2021. Rapid growth is among the most powerful forces in innovation investing. This type of growth sneaks up on us. It appears linear initially. But then there is a sharp "elbow," and the pattern goes vertical. And the speed at which that takes place is why most do not find it until too late. In hindsight, however, it's easy to spot. That's why my objective is to help my readers purchase the most appealing tech business right prior to that elbow - jeff brown biotech pick.
Could that have implications for stocks? Financiers are probably knowledgeable about the Tax Cuts and Jobs Act. It was the most significant tax reform law because the 1981 Reagan tax reforms. democratic republic. One of the greatest things the law did was lower the corporate tax rate from 35% to 21%. That made American business taxes the least expensive they have actually been considering that 1938. And among the big effects of this was that corporations had to choose what they would do with all the cash they were saving. They chiefly did two things. They purchased brand-new devices, facilities, and research study and advancement.
[Stock buybacks are when a business buys its own shares and decreases the number of impressive shares, therefore increasing the worth of staying shares (self-driving cars).] Both things were excellent for equity rates and investors in American business - united states. However if President Biden can press through greater business and personal tax rates, that would have a negative effect. It'll decrease usage and adversely affect the stock markets. We'll have to see if that occurs or not. But that's why I'll continue to concentrate on the world of high technology in 2021. Think of it. If a company provides a revolutionary product, service, or therapy, will it matter who is being in the Oval Office? It will not.
And if the marketplaces do experience a dip throughout the next administration, that may be a fantastic purchasing opportunity for some of the amazing business I have on my radar. I'll make certain to keep my subscribers posted if there's any action we need to take. Thanks as always, Jeff. Anytime. Like what you're reading? Send your thoughts to [e-mail protected] (last week).
Coworker Jeff Brown is our go-to guy for all things tech. He spent 25 years as a state-of-the-art executive at a few of the finest tech business on the planet, like Qualcomm and NXP Semiconductors. And as an active and effective angel financier in early-stage tech companies, he has access to details the general public never sees - future report. He's on the front line, in the field, seeing things months or years before the crowd captures on. Our objective at The Daily Cut is to help area market megatrends early on so you can benefit ahead of the crowd. So today, we're sharing 5 of Jeff's tech forecasts for 2021 - jeff brown top biotech stock 2021.
At the end of each year, I like to have a look at the big photo and anticipate what's coming simply around the corner - future report review. Longtime readers of my work understand I follow the most interesting tech trends on the verge of mass adoption. That includes things like 5G networks, biotech, synthetic intelligence (AI), and much more. These patterns are experiencing rapid development and developing incredible opportunities for investors. I want to ensure all my readers are prepared for what's next. So with that in mind, I'll share five things I see coming in the next 12 months Our new 5G (fifth-generation) cordless networks are a subject I've been covering for years now (future report review).
Even with the COVID-19 pandemic raving, an outstanding 250 million 5G-enabled gadgets were still sold last year. However especially in the 2nd quarter, there were supply chain disruptions, producing hold-ups, and work blockages (the legacy report prediction). All of this ultimately resulted in Apple (AAPL) postponing the release of the 5G-enabled i, Phone 12 by two months. Losing two months of manufacturing and sales actually impacts how numerous 5G devices are sold in the calendar year. When you consider that, offering 250 million units is remarkable. More notably, the delays the pandemic triggered developed a lots of pent-up need. That need has actually now been pushed into 2021.
Which's not my only 5G forecast The 5G network rollout has three various stages. In Phase One, companies and governments construct out the facilities of these new networks, consisting of all the new towers and fiber-optic circuitry 5G requirements. In Phase Two, 5G-enabled gadgets go on sale. 5G phones and other items begin to reach customers. In Stage 3, telecommunications business start using 5G services. That's when we start to see applications operating on 5G networks. Consider things like massively multiplayer games over a smart phone. That's not possible with 4G. It will be with 5G. And my 2nd 5G prediction for 2021 is that we will begin Phase Three by this summertime.
But they will care if there are amazing applications they can access just with a 5G phone. So a growing number of consumers will buy 5G phones to gain access to these applications - tech predictions. That leads to the advancement of more 5G apps (tech stocks). In truth, 5G is going to open a suite of incredible applications: self-driving vehicles, the Internet of Things, robotic surgical treatment, and more. All of these technologies need 5G. The financial investment opportunities going forward will be massive. Stepping far from 5G, the next essential technology I foresee flourishing in 2021 is CRISPR hereditary editing. CRISPR represents "clustered routinely interspaced brief palindromic repeat." It's a mouthful.
At a high level, CRISPR can edit our hereditary makeup as if it were software application. If there's a "typo" in software application code, it can be dreadful. A program can crash or not function correctly. CRISPR utilizes a comparable idea but with our genetic code. "Typos" in our genomes can result in illness - jeff brown investment prediction. CRISPR can remedy these "typos - united states." For years, CRISPR was mostly a specific niche innovation that wasn't well understood. Throughout that time, there were really only 3 companies operating in this area. But things are altering. CRISPR is no longer simply theoretical. We're seeing real outcomes. We're dealing with illness and seeing that this technology works.