- Is it time to buy stocks?
- When it comes to the mainstream press reporting on the virus, I have to call it like I see it
- Please… don’t aim a hairdryer up your nose
Welcome to our weekly mailbag edition of The Bleeding Edge. All week, you submitted your questions about the biggest trends in technology. Today, I’ll do my best to answer them.
But first, I want to take a moment to acknowledge the incredible progress we’ve seen in recent weeks to combat COVID-19.
As I’ve been outlining this week, technology is playing a critical role in finding a solution to this new pandemic. Recently, we’ve seen new clinical trials for a vaccine… early signs of success with the combination of two existing drugs… supercomputers that have discovered a shortlist of compounds that should bind well to the virus and make it ineffective… and even AI technology that is rapidly identifying antibodies with the potential to fight the virus.
I’m excited to see bleeding-edge technology being used to address this global challenge.
And for us as investors, I’m also happy to report that powerful technology trends we follow are still moving full speed ahead. Specifically, we’re seeing increased demand for companies that provide essential components for wireless networks.
As I shared yesterday, peak wireless network usage has increased by 20–40% in the last four weeks. This has major implications for the 5G networks that are currently being built out.
With increased wireless traffic, the world needs 5G more than ever. The wireless networks we use today simply can’t handle this much data traffic. It has gotten so bad that wireless companies are throttling (slowing down) our usage and asking services like Facebook and Netflix to stream lower-quality video to help reduce the overall congestion.
That’s why I’m hosting an online 5G investing summit on April 8 at 8 p.m. ET. I’m calling it “The State of 5G.”
During the event, I’ll share why 5G networks are unstoppable. COVID-19 simply can’t slow down this technology. And because of the recent market volatility, several “best of breed” 5G companies are trading at “bargain” valuations.
At these levels, 1,000% gains are absolutely in play with key investments in 5G companies. And I want all of my readers to take advantage of this opportunity while there’s still time. So I hope you can join me for the event. Go right here to save your spot.
Now let’s turn to the mailbag.
If you have a question you’d like answered next week, be sure you submit it right here.
When should we start buying stocks again?
Let’s start with a question that is likely on investors’ minds. When should we begin putting money to work?
Jeff, I am a Bonner & Partners Lifetime member for the last five years or more and follow and buy almost all of your recommendations. I have been aggressively buying stocks. But last week in the sharp sellout, I got worried about all of my stocks and liquidated all stocks with about 40% loss. I was concerned about my total assets to live on at my age of almost 85 years in a couple of months. I have worked full time as a structural engineer 20 years longer than most people and am finally retiring at the end of this May.
I plan to buy back some of the stocks as the downturn ends and the market becomes more stable, probably in the next two or more months. Can you suggest a strategy for me to buy your stocks back and when? I will appreciate it very much.
– Kamal C.
Thanks for your question, Kamal. As you likely know, I can’t give personalized investment advice. I can only publish research and give general guidance to better inform investors.
Since you’re a dedicated reader, I’m sure you saw my recent video update detailing my view on the current fear-induced sell-off (paid subscribers can catch up by looking at the “issues and updates” tab on the online dashboard for each of my services).
The volatility we’ve seen in recent weeks can be gut-wrenching. We’ve only seen this level of fear-induced selling a handful of times in recent history. I’m talking about events like Black Monday, the dot-com bust, and the financial crisis of 2008–2009.
But here’s what all those events had in common: They were excellent opportunities to invest in stocks.
Based on what I’m seeing, the current valuations for some companies simply make no sense. In fact, the products and services of some of our portfolio holdings are in even higher demand now. I’m specifically talking about companies that provide essential 5G components and cloud-based services.
As I mentioned above, wireless network peak usage has spiked 20–40% over the past four weeks. Demand for semiconductors used in these networks is increasing, not decreasing. And yet, all these companies are off their highs by double digits. They were swept up in the market-wide turmoil.
When the world gets COVID-19 under control in the weeks ahead, these companies will soar as rational thinking returns to the markets.
Markets will need a few things to happen in order to see the recovery that is coming. The first is low interest rates, and fortunately, those are already in place. The second is an economic stimulus package, which is currently being approved by the U.S. Congress.
The more critical and more difficult parts of recovery will be reaching the turning point of new COVID-19 cases. We have to see things flatten out. And we have to see when the kids will be able to get back to school and adults will be able to get back to a normal work schedule.
Until we have sight of those things, we can expect continued volatility in the markets. I have a watchlist of companies that I would like my subscribers in The Near Future Report, Early Stage Trader, and Exponential Tech Investor to invest in in the coming weeks. Please keep an eye out for alerts.
Was I unfair to the mainstream media?
I think you are doing a disservice to your readers by continuing to contrast your views with those of the “mainstream media.” Doing so only perpetuates a denigration of the news media, throwing the baby out with the bathwater.
Of course, there are media reports that are nonsensical. However, there is readily available reporting that is well researched and intelligently discussed. For example, I have read in various publications you would categorize as mainstream media some of the same points you have been making – for example, about the true ratio of infection with COVID-19 to fatalities and that that ratio is smaller than originally thought.
I don’t buy your newsletter to read cheap shots that support an obvious political orientation; I read it because I think you have something to offer in your assessment of the tech and biotech industries. Please don’t continue to knock down others to prove your astuteness. I think you would be better served by allowing your analysis to speak for itself.
– Theodore G.
Hey, Theodore – thank you for the honest feedback. I have made some broad statements when I’ve referred to the “mainstream media”; you are right about that. And you are correct that there are some well-researched, objective, and data-driven reports out there.
My problem is that I just don’t see that very often. My observation is that the fear-driven reporting far outweighs the level-headed coverage. That’s what I seek to counter with my commentary on COVID-19.
I’ll provide just one example. On March 20, CNN ran the headline “Trump Peddles Unsubstantiated Hope in Dark Times.”
When I saw that headline, I couldn’t believe it. As you know, I’ve been researching COVID-19. And in my view, there are plenty of reasons to be hopeful.
For starters, the day that headline ran, new reports showed that zero new cases of COVID-19 had been identified in China.
That same day, the journal Nature Medicine published research that showed the actual mortality rate of COVID-19 in Wuhan – the epicenter of the virus – was closer to 1.4%.
And the mortality rate would likely be much lower if we were to account for mild and asymptomatic cases.
Also, on March 17, early research by MIT suggested that the warmer temperatures and higher humidity of the summer months of the northern hemisphere could help slow the spread of the virus.
All of this data was readily available. And yet CNN still decided to run a headline about “unsubstantiated hope”?
Yes, we should all take this pandemic seriously. But based on what I’m seeing, I believe there are plenty of reasons to be hopeful.
Rational and logical decision-making can only come from objective analysis, not from media that are stoking panic and fear in hopes of higher advertising revenues.
That is precisely why we, as a business, never accept any advertising revenues, marketing fees, or commissions from anyone. We only have one source of revenue: our subscriptions.
This is the only way we can maintain complete objectivity, stay free of any conflicts of interest, and do our very best to work in the best interests of our subscribers.
And one final thing. The Bleeding Edge is free. And I’ve committed to keeping it that way.
It takes me and my team several hours of work every day to research, write, and produce it. I’m not a journalist or a reporter. I’m a technology executive, analyst, and investor.
The Bleeding Edge is the one place where I have an opportunity to research and write about the interesting things that catch my eye in the world of technology and biotechnology.
No one is required to read it, and it is not part of any paid subscription. But I do hope that readers enjoy it and find value in the information that I curate and provide insights on.
Please, don’t fall for these COVID-19 “myths”
What temperature would it take to disinfect a surface from COVID-19? Could wipes or maybe even hand sanitizer be replaced by a heat gun or hairdryer?
– Bob J.
Thanks for writing in, Bob.
I believe what you’re referring to is a supposed “cure” for COVID-19 that has been circulating on social media. Some have suggested that heating a surface with a hairdryer – or blowing hot air through our nasal passages – will “disintegrate” the virus.
There is no data to back this up. And medical professionals have come out against this claim, such as Faheem Younus, who specializes in infectious diseases at the University of Maryland.
And the WHO has also said that using an electric hand dryer does not kill the virus.
The EPA recently released a list of disinfectants that are effective against COVID-19. Readers can access that right here.
The good news is that research from the National Institutes of Health says COVID-19 doesn’t survive very long on surfaces.
For many surfaces, it is just a matter of a few hours before the virus dies. It survives the longest (up to three days) on plastic and stainless steel, but the virus is easy to kill with alcohol-based cleansers.
And worth mentioning is that the virus does not spread or survive well in temperatures above 64 degrees Fahrenheit.
We are already seeing those temperatures in many parts of the northern hemisphere. In fact, even New York City will probably see an even higher temperature today. That’s a great sign for helping to bring the transmission of COVID-19 to a halt in the coming weeks.
At times like this, we must rely on data-driven solutions, not rumors or “cure-alls” we see circulating on social media.
Unfortunately, I’ve seen several of these COVID-19 “myths” in recent weeks. That’s why I put together a presentation outlining some of these myths that we see circulating online.
I provide some commonsense practices we can put in place today so we can all stay healthy and safe. You can access it right here.
That’s all the time we have this week. If you’d like me to answer a question next week, write to me by clicking here. I’ll do my best to tackle it in our next mailbag edition of The Bleeding Edge.
Editor, The Bleeding Edge
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