Why You Can’t Afford To Ignore 5G
Just seven months ago — before coronavirus dominated headlines — the investment world was wrapped up in the imminent launch of the next generation of wireless technology. This is more commonly referred to as 5G.
Back in March, I wrote about the promise of 5G and how it will change many aspects of our daily lives. I even highlighted three key arenas that are directly tied to 5G and look look ripe for investors. (You can read that here.)
But since then, however, it seems that much of the attention has shifted away from 5G. These days the market seems to be fixated on two “hot” areas: 1) biotech stocks, or those companies in search of a vaccine for Covid-19, as well as 2) technology stocks that are helping us rapidly shift towards a work-from-home environment.
Of course, we’ve benefited from these two trends over at Maximum Profit. Our position in DocuSign (Nasdaq: DOCU) is up over 170% in five months), Five9 (Nasdaq: FIVN), up more than 70% in four months, and a more recent addition (I’ll save this name for another day) has surged nearly double-digits in the two weeks we’ve held it.
With much of the focus (and returns) on these stocks and sectors, 5G has been pushed to the back burner. But according to my Maximum Profit system, they are secretly beginning to pick up momentum, once again.
So just as a reminder for why investors need to pay attention to this space, let’s refresh our memories on why exactly 5G has so much promise. Regardless of “if” or “how much” we make on our most recent pick over at Maximum Profit, you can bet that we will see plenty of other 5G stocks come into the portfolio down the road. You’d be wise to do the same, so it’s important to get a good understanding of this burgeoning technology.
How 5G Will Change Our World
This probably isn’t the first time you’ve heard this… but 5G is going to change our everyday lives.
This next generation of wireless technology has endless applications. We’re not talking about just better, faster cell phone coverage here, although that will be an added perk. 5G will be anywhere from 10 times to 100 times faster than the current iteration of 4G. For instance, you’ll be able to download a season’s worth of Yellowstone in a matter of seconds.
But what’s really going to be a game-changer is the low latency that 5G offers. Latency is the response time when you click on a link or start streaming a video and it actually starts happening.
In today’s instantaneous world we become frustrated if we click play on a YouTube video and it doesn’t immediately begin playing. We blame it on slow service, a faulty phone or tablet, or even going as far as thinking the internet went down altogether. In reality, when we click “play” that request gets sent to the network, the network needs to decipher it and respond.
As much as we don’t like it, on occasion, the playback on a video lingers… keeping us in suspense until it begins playing. That suspense, or lag, is the latency. With the current technology, the latency is around 20 milliseconds, which is fast, but not fast enough for many of the applications that will flourish under 5G.
With 5G, the latency gets reduced to as little as 1 millisecond. That responsiveness is critical for the next leap in communication technology. The reduction in latency, down to “real-time” means a surgeon in New York could control a pair of robotic arms to perform a procedure on a patient in Seattle. It means self-driving vehicles could communicate and process data in fractions of a second — making true autonomous vehicles a reality. Artificial intelligence will flourish under 5G. The Internet of Things will continue to evolve. More and more devices will be connected offering more capabilities and faster speeds.
But it does come at a cost…
We can’t simply flip a switch to turn on 5G. All these devices connected to the internet will demand an enormous amount of bandwidth. Current infrastructure can’t meet the requirements needed. Imagine a creek in your backyard… only so much water can flow through without it flooding. That creek is the current iteration of bandwidth technology. For 5G, we need the Amazon River — the largest river by volume in the world.
Big Paydays Lie Ahead For 5G Investors
In 2018, the global 5G market was roughly $43 billion. It’s expected to grow exponentially by 2025. We are talking about a 56.7% compounded annual growth rate — making it one of the fastest-growing markets in the world. This means massive amounts of money will be spent — and made — from this massive shift in technology.
Like I said, it might or might not be this new 5G play that makes us a slew of money. But you can bet that over the next few years we will reap gains from this massive trend with several different stocks.
That’s why I was interested to learn about my colleague Stephen Leeb’s top pick for the 5G revolution.
To put it simply, the 5G rollout will be impossible without this small company’s key technology.
The good news: if you buy these cheap shares today, you could see a life-changing gain over the next few months. But there may be only a few days left before Wall Street catches wind of this company and spoils the party for everyone. This report shows you how to get started right away.