Editor’s note: It’s not often we share essays from other editors in the Market Minute. But recently, we heard about a little-known Wall Street insider named Jason Bodner… And once we took a look at his work, we knew we had to pass it along to you.
Like Jeff, Jason is a trader. He knows how to put his finger on the pulse of the market and accurately predict what’ll happen next. In fact, he helped develop Tradeworx, the fastest high-speed trading system on Wall Street.
This week, Jason is holding a special presentation (sign up for free here) on his newest innovation: a proprietary trading technique that can predict big market moves up to a month in advance. And today and tomorrow, he’ll reveal two reasons why one specific sector is seeing a ton of money rush in right now… and how to play it.
We live in a modern world, where it seems like everyone is constantly connected to the internet. Even at home, my wife and kids are often on their devices—streaming content on their phones, playing on their Xboxes, or watching Netflix.
But when I settle down to work at night, I often run into internet issues. Sites load slowly and sometimes not at all. Files syncing to my cloud storage hang up. And watching videos? Might as well not bother.
In fact, sometimes I have to rely on cellular data just to load an email because the home Wi-Fi is so clogged. Put simply: The internet we’ve all come to rely on so heavily grinds to a halt… all because everyone is trying to access it at the same time.
Now, I know I’m not alone. If you’ve ever been online at “peak usage hours,” then you know what I’m talking about. And there’s one explanation: There’s simply not enough bandwidth.
There are nearly 27 billion devices connected to the internet worldwide. By 2025, that number is projected to grow to more than 75 billion.
Wireless customers experience calling problems and slow connections 16% of the time.
From 2015 to 2017, 4G mobile broadband errors were up 40%.
And according to a 2017 Google study, the average load time for mobile websites is 22 seconds—but 53% of visits taking longer than three seconds to load are abandoned.
So we’ve reached the technological equivalent of needing to widen highways from two lanes to four. But there’s a solution: the coming of 5G.
And in today’s essay, I’ll show you why the smart money is positioning itself in this booming space—along with why you should follow it.
But before I get to that catalyst, let me explain what 5G is…
Welcome to 5G
5G is “the next generation of mobile internet connectivity, offering faster speeds and more reliable connections on smartphones and other devices than ever before.” That’s according to the TechRadar website (which, ironically, finally loaded on the third try).
Among other things, it’ll enable:
New connections to Internet of Things networks (where devices like household appliances are all connected through the internet)
Faster broadband wireless speeds (10 to 20 times faster than what’s currently offered)
Lightning-fast downloads, smooth streaming, and lower latency (fewer delays)
For now, the most important thing to know is that on average, 5G wireless networks will be 100 times faster than the 4G wireless networks we’re using today.
Here’s the thing, though…
The U.S. is facing stiff competition from China to be the leader in 5G technology. And that’s where our big catalyst comes in.
President Trump Is Going All-In
“The race to 5G is a race that America must win.”
That’s what President Trump said earlier this month about his plan to make the U.S. the leader in the 5G space.
“We cannot allow any other country to out-compete the United States in this powerful industry of the future,” he continued.
Of course, the president was referring to China’s plans to dominate the 5G spectrum. According to some experts, the U.S. is “miles behind” China when it comes to building out the next generation of wireless infrastructure.
And to catch up, Trump is going all-in on 5G. He’s even ordered his administration to cut regulations and free up spectrum for 5G tech for U.S. technology companies.
For example, the Federal Communications Commission plans to auction the broadest set of airwaves yet to speed up the nation’s adoption of super-fast 5G wireless communications. It’s also devoting more than $20 billion to improving mobile connections in rural areas.
President Trump has made it clear he wants U.S. telecom providers to be first to market with 5G connections. And we’re not the only ones who think he’ll get it done… The smart money does, too.
Let me explain…
What My System Is Saying
If you’ve been following The Palm Beach Daily, then you know I’ve developed a highly accurate stock system after leaving Wall Street—where I was even a partner at Cantor Fitzgerald. (And if you’re not familiar with my work, you can read my interviews with colleague Nick Rokke here and here.)
Cantor Fitzgerald helped create Tradeworx, the fastest high-speed trading system on Wall Street. The system identified winning trades 30 milliseconds in advance. But my system has proven to identify the market’s fastest-growing stocks up to 30 days before.
This same system flagged institutional buying in semiconductors earlier this year. And it’s been highly accurate on a number of other occasions, too. (For example, it predicted the sell-off in February 2018 and the rally we saw at the start of this year.)
It can flag this type of trading activity because it quickly catches what institutional buyers are doing. And right now, it’s signaling the smart money is still snapping up semiconductor stocks.
These companies make the microchips that electronic devices depend on. In essence, semis are the “brains” of machines. So they’ll be essential for the complex networking equipment needed for building out 5G.
In fact, the first time my system flagged the sector, it shot up nearly 30% during this year’s first quarter—its best start ever. Plus, with the smart money betting on Trump winning the 5G race, we think they’re likely to continue snapping up microchip-makers at this pace.
The president’s plan will be a huge catalyst for semiconductor companies. During the 2011–2015 4G network buildout, these companies increased an average of 150%. And this 5G buildout could be even bigger.
The best one-click way to get exposure to the sector is through the iShares PHLX Semiconductor ETF (SOXX). The fund holds large semiconductor companies like Nvidia, Intel, and Broadcom.
Editor, Palm Beach Trader
P.S. As I mentioned above, Cantor Fitzgerald stunned everyone with its new high-speed trading system in 2012—which could “look up to 30 milliseconds into the future.”
And during my special presentation tomorrow, I’ll unveil my own breakthrough system, which can spot the market’s fastest-growing stocks up to 30 days in advance. (In fact, it’s already identified a small tech company in the 5G space that’s generating big interest from hedge funds… and could be a triple-digit winner in just a few months.)
You still have the chance to claim my No. 1 recommendation… but it won’t last long. Sign up for tomorrow night’s presentation right here.