Tesla and the 3 Biggest Disruptions to Buy Into Now
This will be the end of Ford, Chevrolet, BMW and many more…
Tesla is putting the nail in the coffin for these old-world combustion engine car companies.
It’s taking market share and disrupting the multitrillion-dollar old-world car industry.
And that’s not all…
Disruption is happening across the board — paving the way for America 2.0:
- Pot is putting an end to the old vice economy, and this election year could push the market through the roof. (2:45 – 5:45)
- Bitcoin is the new digital gold, and demand is soaring. (5:46 – 7:21)
- Millennials revived a dying industry that’s now creating an opportunity for generational wealth. (7:23 – 9:00)
Watch today’s Iancast for the two best investments you can make now before these disruptions soar to unbelievable new highs.
2019: The Year of the Model 3
2019 numbers just came out for electric vehicle (EV) sales and, of course, the Model 3 was at the top of the list. I’ve talked about this a few times.
The Model 3 outsold the number two highest-selling car. I don’t remember which car that was, but the Model 3 outsold it by almost triple the number of sales. That’s pretty incredible to see that kind of dominance by Tesla just two years into Model 3 production. So it’s a huge year for them.
The Model 3 also outsold every other EV company by 80,000 cars. It was a Chinese company that was the second-best-selling company in the world. And just the Model 3 alone outsold it by 80,000 cars last year. That’s pretty incredible.
They have two more cars coming out that they are going to mass produce just like the Model 3. The Model 3 was the first car they produced on this scale. Now they have additional gigafactories all over the world. They have one in China, they have two in America, they are building one in Germany and the rumor is they are going to build another one here in America.
There’s a huge future ahead for them. They have the Model S and Model X, which they never made on the same scale as the Model 3. The Model Y they are going to mass produce and they are already producing those. Sales of those will start soon and give them an extra boost.
Then next year they have the Cybertruck, which they are planning to start mass producing late next year or early 2022. That will be another big boost. The future is very bright for Tesla. With those 2019 numbers we also saw the decline of the traditional combustion engine vehicle. Since 2017, the sales of those traditional cars have gone down 6.5%.
Meanwhile, the sales of electric vehicles have gone up almost 70% — in just two years. So they are taking market share. 6.5% doesn’t sound like a lot, but that’s equivalent to about four million cars. The combustion engine industry is slowly dying and we’re going to see it die out faster and faster as electric cars continue to disrupt it.
That is being spearheaded by Tesla. The Model 3 is a breakthrough car that’s disrupting this multi-trillion-dollar internal combustion engine old war car industry.
Medical Marijuana Users are Growing in the U.S.
Moving on to pot. Something interesting I saw was that Illinois is now seeing a big increase in applications for medical marijuana licenses since they legalized it recreationally. That was a huge boom. They got $11 million in sales in just the first five days, which is huge.
That’s more than Canada makes in a week and Illinois only has a third of the people Canada has. That’s a big market. They are now seeing an uptick in medical marijuana users. That could have a big effect as more states continue to legalize it recreationally.
We also see big sales numbers coming in from 2019. Oregon had a 22% increase in 2019 and Nevada was over 20%. Pennsylvania over the past two years has made more than $500 million in marijuana sales and they are only legalized medically. There’s still some regulatory issues there, so they have way higher to grow.
Pennsylvania has actually reported shortages of marijuana, as has Illinois. Of course with the big boom the first week of the year, a lot of shops had to close down. We’re seeing more and more shortage news come out across the United States. This is great from an investment perspective because that shows that a lot of people have this demand for marijuana products.
Not only that, but more states are seeing the huge tax revenue coming in. Nevada made more than $250 million just from January to October last year. Oklahoma, where it’s only legalized medically, made more than $50 million last year just in taxes alone. There’s a huge opportunity here.
We’re going to see a lot of states vote this year during the election for legalizing on some level, whether it’s medical, recreational or both. That could have a big effect on the marijuana market. That’s a big catalyst we’re looking at for this year.
1 Stock to Profit from Marijuana Growth
I’ve said before, and I’ll say it again, I think that ETFMG Alternative Harvest ETF (NYSE: MJ) is going to go up 100% this year. Possibly more. We are already starting to see the beginning signs of rallies across the board in pot stocks. The United States is the hub of marijuana already and only 11 states have legalized it recreationally.
We believe that’s going to go way up at the end of this year when more states vote to legalize it. We’re seeing increased sentiment. I think it was 80% for millennials at last look. Also, the states benefit from that tax revenue. It’s a win-win situation.
We think it’s going to be a great year for pot stocks. Again, MJ is the one to buy. I think it’s going to at least double this year.
Demand for Bitcoin Remains Strong Despite Negative Headlines
If you look at headlines from major news corporations, they are always negative. They always say Bitcoin is a scam and has no intrinsic value. But the demand shows otherwise.
As you can see from this chart, people are holding Bitcoin through thick and thin, through every crash and through every dip. The amount of addresses that own one or more Bitcoin continues to grow higher and higher. It’s right near its all-time high right now. It’s about 40,000 higher.
So 40,000 addresses or more own a Bitcoin since that big peak that we saw at the end of June when it hit $14,000 per coin. It’s down to a little bit more than $8000 now. We’re still seeing more and more people stockpiling. These are the people we want to see stockpiling because they’re willing to pay up.
The addresses that have 10 or more Bitcoins also have been going up. They are also at record highs. It’s really encouraging that big buyers are buying and holding. That’s what we want to see because it creates less of a supply, which creates a supply and demand imbalance.
When you have high demand and low supply, that means the price goes up. That’s what we’re recommending. We want to buy Bitcoin and hold on. Our forecast is that it’s going to hit $50,000 per coin this year. We have The Halving coming up this year. Of course that’s going to cut supply too. All in all, a great outlook for Bitcoin.
Profit from the Millennial Housing Demand
Finally, I want to go over homebuilding. Like I said last week, 37% of the houses bought last year were bought by millennials. Gen Z is starting to move out of college and are buying homes. They are less likely to rent than millennials. They didn’t have the financial crash to deal with as they were getting into college or graduating from college.
They have a much better environment to buy homes. We’re seeing across the board that homebuilding companies are saying there is currently a huge shortage of houses in the United States. After the real estate crash, everyone wanted to sell their house, get out. It scared the homebuilders.
They didn’t want to build any extra supply because there already wasn’t demand to buy the current supply. They stopped building for years and years. They are finally just starting to build again. That’s going to create another supply-demand imbalance. The supply of houses is so low and there’s such huge demand from millennials and Gen Z.
It’s going to drive the real estate market for probably an entire generation. We have decades of growth ahead for homebuilding stocks. The investment I would recommend to make is iShares U.S. Home Construction (BATS: ITB). It’s an ETF with all kinds of homebuilding stocks in it. I think it’s going to have a great year as well.
We’re seeing the leading homebuilding stocks make all-time highs, even higher prices than before the big real estate crash. That shows the market sentiment now on homebuilding stocks and on this industry in general. It’s going to have a great year this year and years to come. Again, ITB is another one we would recommend to buy.
That’s all I have for this week. Everybody, have a great Friday and enjoy your weekend. I will see you next week.
Editor, Rebound Profit Trader
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.