3 Stock to Sell. 3 Trades to Buy. TODAY

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Today I’m sharing three stocks to sell and three trades to buy, for the next three years.

5G revolution smart home

Banyan Hill’s Amber Lancaster

In our latest Bold Profits weekly internal investment team call, Paul Mampilly shared what I like to call his overall market view and general stock forecast for the next one to three years.

Simply put, his America 2.0 projections were very enlightening and classic forward-thinking Paul!

In Paul’s own words: “I tend to live about three years ahead of many people.”

And it’s true.

Paul is what we call an early adopter of technology.

This is a term used to describe a person who starts using a technology, innovation or product as soon as it becomes available.

In my many conversations with Paul, I can tell you he walks the talk.

From the concept of home grocery delivery, to living in a smart home to driving an electric vehicle with self-driving tech … innovations that we take as commonplace today, Paul was not only using in his everyday life, but he was also an early investor in startup companies that are now well-known nationwide and globally.

Here’s a quick demonstration on where early adopters fall on the “Diffusion of Innovation” bell curve.

This curve shows the five categories of technology product adopters.

First, there are innovators of technology, people like Elon Musk of Tesla or Jeff Bezos of Amazon fall into this category, followed by early adopters of technology like Paul and like-minded individuals, then there’s early majority, late majority and laggards.

As an early adopter, Paul represents a group that’s the second fastest adopters of individuals who adopt a new technological innovation, at 13.5% of the total group.

So, carrying that early adopter theme to actual trades that you can make today, here’s where we stand at Bold Profits.

First, before you buy into the stocks of tomorrow, it’s probably a good idea to clean up your America 1.0 portfolio.

Let’s start with three America 1.0 stocks to consider selling.

The first America 1.0 company to consider selling is Exxon Mobil Corp. (NYSE: XOM).

I’m sure you saw the news headlines on August 25, 2020. Money & Markets Research Analyst Matt Clark touched on it in a recent episode of The Bull & The Bear podcast.

Exxon Mobil, which joined the Dow Jones Industrial Average in 1928, was dropped by the Dow.

As Paul phrased it in our team call:

We are going to see a faster transition out of carbon. The best example of that is Dow Jones taking Exxon out of the DJIA. Just imagine that. Even 10 years ago that was unimaginable.  The massive shift to new energy: solar, wind, batteries.

An entire new infrastructure — a microgrid that are going to be implemented. Meaning if you have solar on your house and you have a battery and you have extra, you can feed it out to your neighbor. It’s a brand-new infrastructure that will be created.

The second America 1.0 company to consider selling is Raytheon Technologies (NYSE: RTX). 

Raytheon which had its initial public offering debut on September 5, 1934, was once a name synonymous with creating products and services in the aerospace industry, but unfortunately, as reported of August 24, 2020, the company was officially booted from the Dow.

The third America 1.0 company to consider adding to the sell list is Visa Inc. (NYSE: V).

In recent days Tesla’s market cap eclipsed Visa’s as seen in this chart I tweeted on August 27.

As one of our Twitter followers noted, they own both Tesla and Visa and are not selling Visa … just yet.

I asked Paul point blank on our call, his thoughts on Visa.

He predicts that eventual Visa stock price will go to zero dollars.

Why?

He said:

The vast majority of people in America cannot get a Visa or MasterCard. You must have bank level credit to get it. They charge retailers various fees. That’s an expensive proposition.

You offer retailers a way around that, they will take it in a heartbeat. Every person today who has PayPal, Venmo or Cash App, if you can run a transaction through that, it costs the retailer less. It might cost them a few cents.

Now people want the convenience, but MC and Visa don’t think they have good enough credit. With Venmo and Cash App, you just do it on your phone. If you have enough money, you can use it.  

MC and Visa are destined for $0 just like banks and insurance cos. They are all going to die. They represent expensive solutions to very inaccessible solutions for the vast majority of people. People who lack higher incomes can’t get these cards. They are locking out huge numbers of people.

Lastly, here are three trades to buy for the America 2.0 revolution:

  1. As a new energy play consider buying the ALPS Clean Energy ETF (BATS: ACES).
  2. To play the autonomous technology & robotics revolution buy the ARK Autonomous Technology & Robotics ETF (BATS: ARKQ).
  3. Consider buying the ARK Fintech Innovation ETF (NYSE Arca: ARKF) to play the new financial payments systems and future of blockchain.

America 2.0 innovations is here. Don’t miss out on key trades to help you capture these potential future gains.

Until next time,

Amber Lancaster smart home

Amber Lancaster

Director of Investment Research, Banyan Hill Publishing

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