America 2.0 Alert: Coronavirus Fast-Forwarding 3D Printing
One of our America 2.0 mega trends is being fast-tracked through the coronavirus crisis.
The 3D-printing industry is more important now than ever before.
Right now, 3D-printing factories are creating ventilators, medical supplies and face masks at rapid speed.
This is just the tip of the iceberg for our America 2.0 mega trends. I believe that, once the market bounces back from COVID-19, America 2.0 will be an unstoppable bullet train of progress and profits.
Watch this week’s Market Talk to see the proof behind our #BOP (bullish, optimistic, positive) outlook on the markets today and what it means for your stocks:
Market Talk March 23, 2020
Breaking news this morning as the Federal Reserve announced a huge second wave of initiatives to help the U.S. economy. They have now signaled unlimited quantitative easing.
This means the Fed will buy Treasuries and agency mortgage-backed securities in “the amount needed to support a smooth market functioning at an effective transmission of monetary policy to broader financial conditions and the economy.” 
Per Bloomberg, “under the new programs, the Fed will take on a slew of efforts. Many aimed at directly aiding employers and households, as well as cities and states.” 
The Fed will support the flow of credit to employers, consumers and businesses by establishing new programs that will provide up to $300 billion in new financing.
It will be backed by the $30 billion of Treasuries Exchange Stabilization Fund.
According to the Small Business Association, the Fed also “expects to announce soon the establishment of a Main Street business lending program to support lending to eligible small- and medium-sized businesses complementing efforts.” 
As we all adjust to the ramifications of COVID-19, I’d like to share a study produced by Bloomberg New Energy Finance, which has new data from eastern countries that are now emerging from the other side of the COVID-19 outbreak.
This could give Western nations like the United States insight and hope into what we can expect in the weeks ahead.
China’s Rebound Proves This Too Shall Pass
Per Bloomberg NEF, there’s been a major transportation development in China as the recovery there continues. NEF data is now seeing an upturn in flight departure after the COVID-19 disruption.
Their data is also showing increased road congestion as more people from Beijing, Shanghai and Taipei are all about and about filling city roadways.
Moreover, data from WeChat — the Chinese social media and mobile payment app with more than one billion active users — is showing there’s been a fourfold rise in WeChat mobile payments as consumers venture out of their homes, governments relax restrictions and businesses are opening.
This shows us with strong and strategic virus mitigation measures, this same recovery will soon be seen here in the U.S. and other Western nations.
It’s also of note that we are now seeing ETF investors are positioning themselves for a rebound in Chinese stocks.
Per Bloomberg data, investors have poured $176 million into U.S. ETFs that invest in Hong Kong listed Chinese stocks, the first weekly inflow in almost two months and the biggest since November 2018 for the iShares China Large Cap ETF.
This shows optimism is growing for the nation that has mostly contained its coronavirus epidemic and will post a quick rebound.
Investors have speculated about economic recovery and the long-term implications of this shutdown. The data here suggests that, like China, we will bounce back fairly quickly.
Because there is no actual damage to the physical infrastructure of China, there’s no damage to the financial infrastructure either.
China was able to turn the switch back on in stages. And that’s exactly what’s going to happen in the U.S.
There’s no reason to believe in anything other than that.
No country around the world that has coronavirus has been permanently debilitated.
The worst experience by far seems to be Italy. But they have their own particular issues as a country with governance and how the country is administered, which won’t be reflected in the U.S.
The U.S. has done a lot of things right. The media might not think so, but we did.
We closed borders early. We have moved to social distancing and isolation on voluntarily.
The Federal Reserve is coming in and saying wherever there is disfunction, we will send liquidity into that market.
We have learned from 2008 that we must take action early and with massive force.
The Fed’s actions are on top of everything that they have already done bring additional liquidity to other markets where people have been asking for cash and pushing the price of assets down.
Sooner rather than later you are going to see the prices of a lot of assets stabilize.
Upcoming Economic Releases
There will be eight major releases this week.
COVID-19 Opened Our Eyes to The Need for 3D Printing
The evolution of 3D printing is coming, and we need it now more than ever. This crisis has taught companies how vital this technology is.
TechCrunch is reporting that a new 3D-printed ventilator prototype was just created in one week.
This ventilator prototype was created by an open-source 3D printing project. It’s paving the way to create other 3D-printed medical equipment and supplies, like the much-needed masks.
The 3D printing sector benefits directly from what is going on in the economy.
More people are staying at home and working at home. That will continue, in all likelihood, in greater percentage than before the coronavirus panic.
3D printing is a technology that you can run from a warehouse with almost no one in it.
It can be run remotely.
You can bet the warehouses that run 3D printers and industrial 3D printers are working overtime. They can be run. You don’t have to have people come together.
This trend will continue after this has passed.
America 2.0: Together We Fight and We Thrive
Major U.S. companies are stepping up and helping out their employees with a cash infusion.
ADP just announced to its workforce a one-time payment of $1,000 for each associate. Fifth Third Bank is issuing a $1,000 special payment to employees during the COVID-19 pandemic.
CVS Health said the company is awarding bonuses in the range of $150 to $500 to pharmacists and certain healthcare professionals on the front lines, as well as store associates, managers and other site-based hourly employees.
Walmart has announced plans to give cash bonuses too all its hourly employees in the U.S.
The bonus is $300 for full-time workers and $150 for part-time workers. Their bonus totals are $550 million and is labeled as a mini stimulus package.
Kroger will pay all full-time associates $300 and part-time associate will receive $150.
This goes to frontline associates who were hired on or after March 1 and will be paid by April 3.
Facebook is giving a $1,000 bonus to all of its 45,000 employees in order to relieve some of the stress related to the outbreak.
JPMorgan Chase will hand out $1,000 to frontline employees.
Starbucks just announced that employees who come and work their shifts through April 19 are eligible for Starbucks service pay worth an additional $3 an hour.
This is encouraging to see our companies in the U.S. all stepping up.
The Rattle of Old World Dow and S&P 500
Ordinary investors are too focused on what the DOW and the S&P 500 are doing.
Here’s the problem with that focus.
Both the Dow and S&P 500 are essentially dominated by two companies whose stocks are still going down: Apple and Microsoft.
Both of those companies were driven up by, in some cases, too much investor enthusiasm based on people’s love for their products and buybacks.
The Dow Jones is a terrible indicator for America 2.0 stocks and so is the S&P 500.
I would tell you to stop following what the Dow is saying.
We have gone through the 30 stocks and, largely, they are unrepresentative in our opinion of where the country is today and where it’s going.
In terms of the trends that matter, whether it be 3D printing, remote work or any number of things, those indices have almost no participation or very little participation.
I would tell you if you focus on the headlines on Yahoo! Finance or MarketWatch and you are basing your investment decisions on the Dow, the S&P 500 or even the Nasdaq 100, these supposed things that represent “the market,” I believe you are being misled.
In other words, there is a dichotomy here between the old and the new world.
The old world is based on, say, store retail that is shuttered. However, online retail is booming.
Workplaces that can transition to remote work are, over let’s say over one or two weeks, going to work out the kinks and go back to almost full productivity.
To the extent that remote work is more efficient, maybe even higher productivity.
I am still very bullish, optimistic and positive. I believe our stocks are going to soar.
Editor, Profits Unlimited
I’ve been investing for more than 25 years. I started my career on Wall Street in 1991 as an assistant portfolio manager at Bankers Trust. I quickly advanced to prominent positions at Deutsche Bank and ING, managing multimillion-dollar accounts. In 2006, the owners of a $6 billion firm named Kinetics Asset Management recruited me to manage their hedge fund.