There’s A Whole New World At Your Fingertips! Don’t Give Up On Tech!

It’s tempting to dump tech and seek out safety in practical, tangible assets…but now’s not the time to pull back. February 01, 2022 [Turn on your images.]( There’s A Whole New World At Your Fingertips! Don’t Give Up On Tech! Tech stocks are a big topic of conversation right now, but with a bear market around the corner, it’s tempting to dump technology and seek out safety in practical, tangible assets. But with the Metaverse getting more powerful by the day (despite government meddling) and three specific tech sectors still churning out BIG profits, now’s not the time to pull away. And if the idea of a digital universe still confuses you…you’re not alone. But maybe this will help. --------------------------------------------------------------- [Turn Your Images On] [“Okay, Boomer”: My Journey To Understanding The Metaverse]( Ryan James They say the Metaverse is going to change everything about the way we live…but that doesn’t make it any easier to understand. So to those who are still struggling to properly conceptualize the whole idea of the Metaverse, I feel your pain. It’s still hard for me, a guy who tracks the markets for a living, to understand how a virtual world can be a viable technological proposal, much less a profitable investment strategy. However, I am getting there…slowly. Very slowly. I had an “ok, boomer” moment recently when researching the Metaverse for my own understanding…only this time, I was the Boomer, and at just 33 years old! [Turn Your Images On] The following [quote on CNBC]( hit me hard: “The problem a lot of people have is that there are generations that have a difficult time attributing value to things that are digital, that you can’t hold and that don’t have weight. The younger generation has no issue with it. Like with NFTs, blockchain technology allows for something to be digital, irreplaceable, and scarce. You can hold it, store it, display it and sell it.” Ouch! Apparently I’ve just been reassigned to the “older generation” having a hard time understanding the Metaverse. That hurts! [Turn Your Images On] But I’m not writing this as a first-person journal entry about what offends me. Instead, I’m using myself as an example here, because I am sure many of you, my fellow Money Movers, are having similar issues grasping the yet-to-be-realized omnipotence of the Metaverse. Maybe you’re in that older generation, or maybe you’re like me, a (relatively) young person who still just doesn’t get it. We’ll get the promised land together, Money Movers. Here’s what helped me start to get the idea… Although the Metaverse is digital, the finances behind it are definitely real…and they’re very impressive. For example, last year, $500 million was invested in Metaverse real estate. That’s right, real estate…in a fake world. People spent fortunes on mansions they’ll never physically visit, furnishing them with things they’ll never physically sit on. Life truly is stranger than science fiction now. According to CNBC, “Sales of real estate in the metaverse topped $500 million last year and could double this year, according to investors and analytics firms. Real estate sales on the four major metaverse platforms reached $501 million in 2021, according to MetaMetric Solutions. Sales in January topped $85 million, the metaverse data provider said. It projects that at this pace sales could reach nearly $1 billion in 2022.” Welcome to the Twilight Zone! [Turn Your Images On] Companies like Walmart and Facebook Meta, and even celebrities like Snoop Dog, are all betting big on the metaverse. In essence, although there is no [specific definition of the metaverse,]( it is generally described as a place made of constantly evolving virtual worlds that continue to exist on their own, even when no one is playing in the virtual world. Think of those augmented reality goggles that look ridiculous. AR tech combines the digital and physical worlds, but beyond that, the Metaverse doesn’t even require that those spaces be exclusively accessed via VR or AR. Another aspect of the Metaverse is how it interacts with digital currency. In some versions of the Metaverse, you can take a virtual item like clothes and cars from one platform to another, just like how, in the real world, you can buy a sweatshirt from a store and wear it to a restaurant. As [Wired Magazine put it,]( “Right now, most platforms have virtual identities, avatars, and inventories that are tied to just one platform, but a Metaverse might allow you to create a persona that you can take everywhere as easily as you can copy your profile picture from one social network to another.” That’s on the verge of creating a whole continuous digital identity! And with all the money rolling in because of it, there’s ample reason to pay attention to what’s going on. So, while I realize that this is still clear as mud, I’m getting there…slowly. And if a guy like me can do it…maybe you can too. See you on the next edition of my Meta Journey. Boomer, out!!! [Turn Your Images On] --------------------------------------------------------------- [Turn Your Images On] [Don’t Give Up On Tech! Three Bear-Proof Sectors To Consider]( Shawn Ambrosino I used to be a professional wrestler. Yes, the kind you watch on TV. The tights, the ring, the chairs, the tables…I used to do it all during my twenties and on into my mid-thirties. I had the tools to become famous, and there were even whispers of an offer coming from the WWE, but before my time came, I had found jiu-jitsu and the passion for wrestling just wasn’t there. But I do miss it every once in a while. It’s a performance art, a physically demanding portrayal of Greek theater. Good vs. Evil. I miss that expression of the art–and the adulation of the audience that came with it. If you’ve never heard an explosion of cheers from 15,000 people at one time, let me just tell you, it’s addicting. That’s why you see many former wrestlers who have moved on or retired back for a match now and then. Of those names, Dwayne “The Rock” Johnson and John Cena are the two biggest. Both have moved onto Hollywood stardom, and while the Rock is undoubtedly the biggest star, Cena is starting to catch up. During his time with the WWE, Cena, a former US Marine, was the quintessential good guy, embodying the “never give up” attitude. He even had those words printed on a shirt. [Turn Your Images On] It’s an attitude he’s brought with him to Hollywood, and his persistence in getting better at his craft has seen him get more prominent roles in recent years. Now, the guy who was once considered a muscle-bound bit actor is starring in his own superhero franchise, and this is only the beginning. Don’t Give Up On These Stocks! I say all that to say this: when it comes to tech stocks, you may want to adopt John Cena’s “never give up” attitude during our time of financial hardship. Even though our market could turn into a bear at ANY moment now, there is still a LOT of money to be made in the tech sector, asset stocks be damned. “But Shawn… that’s not what you’ve been telling us! You’ve been pushing asset stocks for weeks and now you want us to shift gears and start going in the OPPOSITE direction? Are you CRAZY?!” The answer to both questions is: “No”. I don’t want you to [shift gears]( just like anything you do when it comes to investing, I’m asking you to diversify. Sure, it may be time to shore up the bulk of your portfolio, but you can continue to allow a percentage of it–say 15%-20%--to continue pursuing those high-growth profits. That’s why I’m saying don’t abandon tech fully. Just make sure you’re not overexposed. There are a few sectors of the tech industry that could still deliver high profits for investors, even during a bear market…and I’m about to give you some tips on how to cash in. Tip One: Don’t give up the cloud. Cloud computing and storage is becoming more and more standardized as it frees up the memory of your computer to do all those fast things you enjoy, like streaming movies or browsing the internet. Cloud computing companies offer cloud services that will continue to be needed and EXPANDED during a bear market, so putting one or two of these companies into the mix could do you right. When In Doubt, Find A Company With Assets Another sector that’ll be “safe” during a bear is microchip manufacturing. Why don’t we want to give up on chip companies? Well, because computer chips are and will continue to be in high demand, and with supply chain issues still a problem, that demand will be met with a premium price. There simply aren’t enough computer chips to go around, and those companies that can provide these micro wonders will have the ability to make a KILLING, regardless of whether there’s a bear in our economy or not. And finally, don’t give up on PC companies like HP (HPQ), Dell (DELL) or Microsoft (MSFT). These companies had a bit of a resurgence during the pandemic when laptops became the go-to tool for remote work and Zoom (ZM) conferences everywhere. And while you’re at it, give IBM (IBM) a once-over, as it seems that things are starting to turn around for this once global leader of the computer industry. [While Green Zone ratings may be “Neutral” on the company, the fact remains that one of the only aspects holding GM back from being a “bullish” pick is its massive size.]( There you have it… Three sectors of the tech world that could still rake in the dough during the pandemic. The question is, are you going to throw in the towel? Or are you going to refuse to give up? [Turn Your Images On] --------------------------------------------------------------- [Turn Your Images On] [Government Meddling Forces Meta To Ditch "Stablecoin" Plans]( by Shawn Ambrosino Here’s the great thing about decentralized finance: it’s DECENTRALIZED. That means no government financial committees can pass monetary policies or impose restrictions on the currencies directly. Sure, governments can ban DeFi altogether, but they can’t make changes to the way the Blockchain operates. It takes the influence and control out of the hands of bureaucrats and puts it in the hands of the crypto community. That’s what makes it a beautiful thing. However, if that’s the case, why do governments continually try to stick their nose into the Blockchain world? [Turn Your Images On] It may be because they WANT to control it but can’t, and therefore constant harassment of the people using the latest crypto innovations is the only thing they can do without full-on fascist/communist crackdowns. Or, you never know, maybe they do have their citizens' best interests at heart. Either way, the governments of the world haven’t stopped trying–and that constant meddling may change the direction of the innovations that many companies have in the works. In the process, it may also create hurdles that crypto can NEVER overcome…although maybe that’s been the goal all along. Meta Met With Pressure From Power Brokers I say this because the Federal Reserve bank is apparently being a thorn in the side of Mark Zuckerberg and company simply for thorniness’ sake, and it may derail some of the plans the Meta CEO had in place. What plans were those? Well, among other things, plans were laid for a crypto project formerly known as “[Libra]( later rebranded as the Diem Association, that was supposed to be a “stablecoin” that would have been coupled to the US dollar. Proponents of stablecoins say they have the potential to transform global finance by offering seamless transaction speeds of cryptocurrencies without the price volatility of Bitcoin or Ethereum. In effect, it was meant to be just a digital dollar with a different name that you could only spend in the company’s Metaverse. However, ever since Meta unveiled its plans for their stablecoin all the way back in 2019, legislators voiced their negative opinions about the project, claiming they didn’t want a private company controlling any part of the global financial system. Or maybe they just wanted to avoid interruptions to their kickbacks… Either way, even though the idea was being poo-pooed by lawmakers, Silvergate Capita, a fintech bank partnered with Diem and Meta on the deal, kept pursuing their plan until they ultimately hit a big, fat roadblock: [The Federal Reserve](. The Fed’s Big Problem With Stablecoins Following several rounds of meetings and negotiations, the Fed told Silvergate in the summer of 2021 that they could not guarantee that it would allow the Diem project to go forward. According to Bloomberg, this left Silvergate with no way to issue the stablecoin. So, with no choice left, Meta has decided to scrap their plans for a Metaverse stablecoin, and the company is now looking to sell the entirety of its one-third stake in Diem. This is NOT a good look for crypto… Ultimately, what’s the Fed’s problem with Meta’s stablecoin? Why is it meeting so much resistance? Simple: stablecoins can pose risks to an entire financial system. They have the potential for “destabilizing runs, disruptions in the payment system, and concentration of economic power,” and the Fed believes that any entity that issues a stablecoin should be regulated like a bank, meaning with transparency and, hopefully, FDIC insurance. But that goes against the whole idea of DeFi! Do they not see how their interference could destabilize a new and blossoming market? They probably don’t care because they have no control over it. This is coming at the WRONG time, as the massive crypto selloff of the past few days has left the entire market in shambles. It’s a shame that the Fed can’t see the big picture or overlook their need for power in order to let a new and exciting idea take root. Either way, they’re robbing the world of a unique new way of doing things… And in the end, isn’t that what life is all about? --------------------------------------------------------------- For more quality content like this, and to learn more about the Money Moves team, visit us at [( Privacy Policy The Money & Markets, P.O. Box 8378, Delray Beach, FL 33482. To ensure that you receive future issues of Money & Markets, please add info@mb.moneyandmarkets.com to your address book or [whitelist]( within your spam settings. 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