The Future Of The Tech That Powers The World

Tech is integrated into every facet of our lives…and now the future is here! January 08, 2022 [Turn on your images.]( The Future Of The Tech That Powers The World From the electric grid that keeps the lights on to the tiny chips that run the devices that make modern life possible, tech is integrated into every facet of our lives…and now the future is here! Emerging technologies in the renewable energy and semiconductor markets offer the perfect opportunity for investors to win BIG. But as average investors gear up for profits, is the unseen hand of the Federal Reserve gearing up to pull the rug out from under them? Is the Fed’s talk of raising interest rates nothing but talk…or are we facing a bear market like no one could’ve predicted? --------------------------------------------------------------- [Turn Your Images On] [Going Off The Grid! These Ideas Could Transform Power As We Know It]( Ryan James Everyone is talking about new battery technology these days! Well, maybe not everyone, but anyone who isn’t absolutely should be! Many of our batteries these days are made using lithium, and they power everything from smartphones to laptops. That’s great and all, but lithium-ion batteries have downsides as well, like not lasting long, struggles in cold environments, and in electric vehicles, they’ve even been known to catch fire during crashes. Explosions are fun to watch in movies, but not so fun in real life. [Turn Your Images On] If the electric vehicle industry is ever going to explode (pun intended), new battery technology would help the cause. There are several new candidates for renewable batteries and storage capacity on the grid—which is our focus today—but none yet have proven to be a definitive solution. The major problem with renewable energy is that it can’t store enough energy to be viable on the electric grid. So, if the wind isn’t blowing or the sun isn’t shining, these forms of energy generation are useless. To be viable, these forms of energy need to be stored for days or even weeks to use during peak demand times—something they aren’t capable of doing now. So far, there are batteries such as iron flow batteries for smaller-scale generation that have been developed that last for twelve hours, and that’s a nice start, but not near the lasting charge needed for seismic change in the energy and technology sectors. The electric grid is kinda big, if you didn’t know. There is a whole planet to power! Then there is thermal energy storage that allows for brief periods of storing energy. Thermal energy storage allows cooling to create energy at night and then be stored for use the next day during peak times. However, the king of the energy storage market is pumped hydro storage. It accounts for 99% of grid storage today. It’s basically a high-maintenance water park, but instead of having a lazy river and giant slide, has a giant dam. [Turn Your Images On] The dam thing keeps getting in the way of water. (See what I did there?) Hydro storage uses surplus electricity to pump water up to a reservoir behind a dam. Later, when demand for energy rises, the stored water is released through turbines in the dam to generate electricity. Gravity, that thing discovered by Isaac Newton when an apple hit him in the head, is also a candidate for storing energy. These gravity-based storage systems use surplus energy from wind and solar to move millions of pounds of rock uphill in special electric rail cars that roll back downhill, converting gravitational potential energy to electricity that goes out onto the grid. It’s like riding a ski lift to the top of a mountain and riding a boulder back down. Sounds like a fun ride to me! But back to batteries. Utility-scale batteries are being developed to bridge the gap between renewables and demand, which changes throughout the day. V-flow batteries offer a potential solution. These batteries use vanadium—which is more prevalent than lithium in the earth’s crust—and can be large and best suited to industrial and utility applications. They are too big for electric cars, but the V-flow batteries outcompete lithium-ion batteries and are more scalable, longer-lasting, and cheaper. Renewable energy is now cheaper than it used to be. These aren’t your grandpa’s energy prices! There is no one solution at the moment, but the smart people of the planet deserve a participation trophy at least for their efforts in trying to improve our electrical grid using renewable energy. In the next few years, the global energy storage market is projected to jump from $17 billion to $56 billion. So, for now, we aren’t going off the grid as we know it, but in the meantime, fellow Money Movers, stay with us for future additions of this fine publication for investment opportunities in the renewable energy market. You will be glad you did! --------------------------------------------------------------- [Turn Your Images On] [“Semiconductor? I Thought They Were Called Semi Drivers!”]( Shawn Ambrosino Computers making the difference between life and death? That may sound a bit overdramatic, but it’s not too much of an exaggeration in a world where computers quite literally run everything. There isn’t one aspect of our lives in which computers aren’t involved. It’s almost scary when you really think about it. Our airplanes, cars, and even some of our houses all run on the power of computers. Then, when you factor in all the computer-operated medical equipment—which is especially important in the time of COVID—it’s easy to understand how computers have become integral to our literal survival. Of course, that doesn’t mean that we can’t live without them…just that it’s not easy. There are plenty of people living “off the grid” quite successfully, but the simple fact is, for most of us, computers ARE vitally important to our way of life. It’s funny, I can still remember my Seventh-Grade math teacher telling the class, “You’ve got to learn this stuff. You’re not going to be walking around with a calculator in your pocket.” Well, Mr. Mitchell, looks like the joke’s on you! Not only do I have a calculator app on my phone, but I also have the collective power of the internet at my disposal at the push of a button. So, you can take your geometry and stick it where the sun doesn’t shine! I’m kidding…Mr. Mitchell was a gem of a human being, so I’d never say something like that to him. But it’s funny how the older generations have always had a hard time grasping the enormity of modern innovation in the Digital Age. “Semiconductors?” See, the title of this article was an actual quote from a 70-something I met in the sauna at my local gym. A few of us were sitting in this hotbox, sweating out toxins when we started talking about the economy. We got around to discussing the supply chain issue, worker shortages, and why used cars are so expensive right now. He must not have been paying too close attention to what we were saying, because when he heard the term “semiconductor,” he piped up and said, “Semiconductor? I thought they were called semi drivers?” No, I’m not kidding…but I don’t know if he was. While semiconductors aren’t the reason for what’s going on with our economy, the semiconductor market has been affected just like every other industry. Semiconductors are an integral part of computers, functioning as the main component in most electronic microchips, which is what makes them integral to our economy. In fact, over the past decade or so, the semiconductor market has exploded, and those who realized what they were looking at back then were given the chance to make a lot of money on these tiny electrical gateways. Some people have even gotten insanely wealthy from this market…which is why going into 2022, we should all pay attention to the market that truly makes our world tick. I wanted to give you TWO stocks to look at that could be the next breakouts for the industry. If we’re lucky, these stocks will take our wealth to the moon with them. Though I warn you, one of them is scoring “bearish” on the Green Zone Fortunes rating system, so be careful and do your own due diligence. Keep Your Eye On These Two Stocks The first stock I wanted to talk about is Advanced Micro Devices (AMD). Goldman Sachs analyst Toshiya Hari says that Advanced Micro Devices is one of the big up-and-comers in the semiconductor industry, saying of the company, "Similar to the last few years, we expect positive earnings revisions to drive the stock higher as we progress through the year.” How much higher? Hari has a price target of $170 on AMD, and he could be right because the GZF rating on this company is “bullish.” Take a look for yourself: [Turn Your Images On] [(Click here to view larger image.)]( Combined, these two factors should give investors a warm and fuzzy feeling when it comes to AMD. The same sadly can’t be said for the next stock in our discussion. Marvell Technology (MRVL) may sound like a comic book company, but it’s not; instead, it just may be one of the hottest semiconductor plays on Wall Street. Marvell isn’t one of GZF’s typical stocks. It’s more of a longer-term play, and this cloud computing, automotive and 5G building company has a lot going for it…but it’s just not quite cooked yet. Hari has a price target of $98 on this stock, as he feels that with “about 80% of revenue rooted in cloud, enterprise, and communications infrastructure, we expect the stock's valuation premium to hold and for the company to grow revenues and expand profits at a healthy clip into its multiple.” And as with AMD, he could be right. Now, the GZF rating on this company comes in “bearish,” but keep in mind that it has more to do with the company’s size and value rather than anything else. [Turn Your Images On] [(Click here to view larger image.)]( Take those out of the equation, and this company is “bullish” all the way. Do these companies look as appetizing to you as they do to me? I never thought I’d say this, but I think semiconductor stocks are looking “sexier” to me than any other segment on Wall Street other than biotech. This is why I’m keeping my eye on this industry…and you should too. It could give us some BIG profits before all is said and done. And who can’t use a little more $$$ in their pocket? --------------------------------------------------------------- [Turn Your Images On] [It’s Time To Question The Fed’s Convictions]( Shawn Ambrosino If I could sum up the economic vision for 2022 with one word, it would be blurry. It really is unclear what 2022 will hold. We’ve got experts, analysts, and pundits on all sides of the issue telling us completely different things. We’ve got one side wearing rose-colored glasses and seeing 2022 as nothing more than a continuation of the longest bull market in the history of Wall Street, insisting that we’ll be making money hand over fist for the foreseeable future. Meanwhile, on the other side, we’ve got a group of people telling us that our economy is about to face one of the worst recessions to hit our country since the Great Depression. Which is right? Well, in all likelihood, both…and neither. Much like Sarah Connor said in the Terminator movies, “The future is not set. There is no fate but what we make for ourselves.” [Turn Your Images On] That means that the future depends on the decisions that are made right now. Is The Fed Full Of S**t? The burden of that decision-making falls squarely on the shoulders of Federal Reserve Chairman Jerome Powell, who has the power to make the decisions that will shape our economic future. It’s no secret that we’re facing an unprecedented rise in inflation, and the best way to combat that is to start raising interest rates to slow down spending across the country. The problem is that rising rates mean less money being circulated and more money being saved, which tends to transform the economic landscape. That’s why one strategist believes that, while Jerome Powell is talking tough about hiking rates and tapering spending, it’s just that: talk. David Rosenberg, chief economist and strategist at Rosenberg Research and the former chief North American economist at Merrill Lynch, isn’t buying it. He says, “One should be skeptical of the Fed’s forecasts, given the poor track record, even though investors treat them (and the dot plots and FOMC minutes) as gospel.” Why does he think that? Well, all he really has to do is look back at history. The Fed Is Wrong Most Of The Time! Dating back to 2012, the Fed’s forecasts on rates have been correct 37% of the time, on core inflation 29% of the time, on unemployment 24% of the time, and on real gross domestic product growth 17% of the time. That’s a pretty lame success rate. If I was that bad at a job, I’d either get fired or quit… Anybody would. [Turn Your Images On] Not only that, Rosenberg believes that the Fed tends to be too bullish on growth: “What I’m saying is that they say in the stock market never to bet against the Fed but in the bond market, I can definitely tell you that it is perfectly safe to say that you can bet against the Fed’s forecasting ability - especially when it comes to the one thing the Fed can actually control, which is the policy rate.” he says. Wow… Even though this is a stinging evaluation, it’s hard not to see the truth in it. Rosenberg weighed all the things that are facing our economy–flattening real consumer spending, housing past its peak, too much inventory, a record-high trade deficit, and flat-to-down real business speaking –and you can see why he says “there is absolutely no impetus to domestic demand growth going forward and yet the Fed continues to play the role of economic cheerleader.” Realistically speaking, if the Fed were to hike rates to 1.75% next year - it would mean the possibility of a 20% decline in home values and a 30% slide in equity prices - as, according to Rosenberg, if there were a mean reversion in price-to-income ratios. That’s pretty bleak, especially given that he sees both housing and stock prices as overpriced by 15%. His recommendation? Start thinking defensively and moving towards equities like healthcare, staples, and utilities. Again, it’s hard to argue with his logic. If history predicts the future, then he may be onto something here. It makes more sense than the predictions of both the doomsayers and the cheerleaders, and I’d rather have a realistic view of the market than be stuck having to make a choice when I’m not ready. A heavy dose of reality can be refreshing sometimes… --------------------------------------------------------------- For more quality content like this, and to learn more about the Money Moves team, visit us at [( Privacy Policy The Money & Markets, P.O. Box 8378, Delray Beach, FL 33482. To ensure that you receive future issues of Money & Markets, please add info@mb.moneyandmarkets.com to your address book or [whitelist]( within your spam settings. For customer service questions or issues, please contact us for assistance. The mailbox associated with this email address is not monitored, so please do not reply. 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