For us, it appears apparent.
For Wall Road? Possibly not a lot.
During the last yr it’s been hit with fixed promoting strain and dangerous press saying this funding is down and out for the rely.
I couldn’t disagree extra.
What is going to take the Dow to 100K? Straightforward.
America 2.0.
The modern and disruptive applied sciences of tomorrow.
Electrical automobiles, precision drugs, 3D printing, vertical farming, cryptocurrencies…
Take Cathie Wooden’s ARK Innovation ETF (NYSE: ARKK).
Very similar to what would assist the Dow make the six-figure surge, ARKK is crammed with America 2.0 performs which might be ripe to reap big returns.
66% Off? How A couple of 280% Win
ARKK’s all-time excessive was final yr at $159.70.
Nevertheless now it’s down 66% to $52:
This was pushed by many elements: revenue taking, rising rate of interest narrative, concern from battle and geopolitical disaster.
There’s little doubt this stuff should be taken critically, however the fixed bombardment from the media on these points drive folks away from investing sooner or later.
None of those elements have broken the long-term trajectory of those shares. The businesses nonetheless have basic development and are stealing market share from conventional America 1.0 enterprise fashions.
The know-how remains to be younger — perhaps just a few a long time previous, but it surely’s simply getting adopted in at present’s world.
The reason is is the associated fee has declined, whereas additionally offering a superior product and repair for the person.
Tesla is an efficient instance.
In Cathie Wooden’s analysis she talks about Wright’s Legislation, which mainly plots out the associated fee decline of latest know-how over time.
A couple of decade and a half in the past the value of a lithium-ion battery was $300 per kilowatt-hour, when electrical automobiles weren’t rolling off manufacturing strains.
But final yr the value has dropped 70% to lower than $100 per kilowatt-hour.
This coincides with gasoline costs leaping greater to $6 per gallon in some components of the U.S., like California.
I do know I’m uninterested in paying near $100 each journey to the pump.
Sky-high gasoline costs are simply nice commercials for EVs (electrical automobiles).
We’re seeing dramatic price reductions throughout all mega tendencies in America 2.0:
- The price to sequence the human genome went from $1 billion to lower than $1,000 — a 99% discount.
- 3D printing will save billions in manufacturing prices.
- A restaurant can actually have a robotic save them on labor prices which might be roughly 25% of gross sales.
As time goes on the value and know-how will solely get higher, which in flip will result in extra adoption.
Because of this I believe over the following three to 5 years Cathie Wooden’s ARKK ETF might attain $200 or generate a 280% return.
Be on the Wright Aspect of Historical past
At Daring Earnings Every day we have now the identical long-term imaginative and prescient as Cathie Wooden.
We perceive adoption and alter take time…
And you may see that once you spend money on America 2.0 alternatives utilizing our providers or by shopping for the ARK Innovation ETF.
Both manner, you expertise the ups and downs.
In 2020, ARKK noticed a 152% return, however as I said above, ARKK has fallen 66% from its excessive.
However simply as Wright’s Legislation exhibits, know-how is getting cheaper.
Meaning extra development, extra adoption and the decline of America 1.0.
As America 2.0 innovators — like Tesla and others from ARKK — proceed to disrupt, ultimately they’ll need to be put into the Dow Jones as a result of they make up the true trendy financial system.
And THEN, Dow 100K, right here we come!
If you’d like our full Dow 100K prediction, right here’s the official transcript from Paul’s interview. You’ll additionally see the best way to unlock our America 2.0 portfolio picks.
Click on right here to see the main points.
Completely satisfied investing,
Patrick Goodrich
Analyst, Daring Earnings Publishing
P.S. Excessive gasoline costs stink. However they’re an enormous commercial for electrical automobiles (EVs). And that’s nice information for traders. You see, Tesla’s “worker No. 7” discovered the key to a brilliant battery. We’re speaking 12-million-mile type of tremendous… Click on right here for the complete story now.
