Welcome to Inside Wall Street with Nomi Prins! It’s the only daily newsletter featuring the insights of Nomi Prins and her team of global experts. You’ll find all our issues here. And if you have questions or comments, shoot us a note anytime here or at [email protected].
There are monumental changes coming in 2022 that will drive the markets and the real economy in the months and years ahead…
In yesterday’s dispatch, I gave you our perspective on these changes. [Catch up here if you missed it.]
What it boils down to is that there is a seismic – and growing – rift between the real economy and the markets. And as I mentioned yesterday, this has left our planet fragmented on economic, political, and societal levels.
But I also told you that it’s possible to take advantage of – and profit from – this new reality.
So today, I’ll briefly break down the five main sectors I believe to be the most compelling and profitable as we embark on a new year… You’ll want to keep these on your radar in 2022.
And I’ll show you one way you can take advantage of these monumental changes today to grow your wealth in the months and years ahead.
Sector 1: New Energy
The first sector on my radar is what I call New Energy.
The focus on clean and sustainable energy sources is growing, both here in the U.S. and across the globe.
$750 billion was spent on clean energy technologies and efficiency worldwide in 2021. But there’s a lot more to come…
The U.S. government recently passed a $1.2 trillion infrastructure bill, earmarking $65 billion to modernize the nation’s electricity grid so that it can carry more renewable energy.
And other countries are also planning “New Energy” investments…
The United Kingdom has pledged $4.1 billion to boost clean infrastructure projects in developing economies. And in November, it announced funding for a $660 million solar plant.
And China is in the process of building the world’s largest solar-powered green hydrogen plant.
All this investment will create opportunities in the sustainable energy and green technology sectors.
Which brings us to the next sector you’ll want to keep on your radar in 2022…
Sector 2: Infrastructure
Our next sector is Infrastructure.
Preparing for the future requires building for the future. President Biden’s infrastructure law includes $110 billion towards repairing roads and bridges, $66 billion for railroads, $25 billion for airports, and $17 billion for ports.
So in this category, we’re putting all the building materials, precious metals, engineering, and construction companies that go into creating tomorrow’s world – or renovating today’s world.
Now, there are some overlaps here with the New Energy sector above. The Biden administration has vowed to make 50% of all vehicles sold in the U.S. “zero-emissions” by 2030. Building out a robust electric vehicle (EV) charging infrastructure is key to achieving that.
There are currently just over 100,000 EV charging stations across the country. But the target is to have 500,000 by 2030. President Biden’s infrastructure package includes $7.5 billion towards that.
Sector 3: Transformative Technology
Third, we have the Transformative Technology sector. This covers communication, transportation, health, and space.
And again, there’s some crossover here, especially with the EV charging infrastructure mentioned above. So we’ll focus here on the other three areas, starting with communication…
The infrastructure law set aside $65 billion to extend broadband access to all areas of the nation. The 5G rollout, too, continues to pick up momentum, with mobile operators estimated to invest $300 billion in their networks between 2020 and 2025.
Next is the health sector. When the coronavirus news first broke in 2020, scientists estimated it would take years to develop a vaccine. But, using advanced genetic editing and sequencing technologies, as well as artificial intelligence – it took just weeks.
This acceleration in the pace of innovation in healthcare will have a huge impact on this sector.
Finally, space. Private investment in space companies is on track for a new annual record of $10.3 billion. And investment bank Morgan Stanley estimates that the global space industry could generate revenue of more than $1 trillion in 2040, up from $350 billion today.
Sector 4: Metaverse and AI
The fourth sector, Metaverse and AI (artificial intelligence), is one of the most thrilling sectors to emerge since the 20th century space program.
The metaverse is a virtual world, an online space in which we can live, work, shop, meet friends, attend concerts and fashion shows, and have fun… all without leaving the house.
Bloomberg estimates that the metaverse will be worth $800 billion by 2024.
Facebook, one of the world’s best-known companies, has set its eyes on becoming a “metaverse” company. It changed its name to Meta back in October.
We’re watching closely to see what the other big names, including Sony, Google, Microsoft, and Samsung have planned…
AI is hot, too. It is already being used in multiple industries, from finance and media to healthcare, agriculture, legal, retail, oil & gas, and manufacturing.
And the number of companies – from startups to industry titans – developing AI is staggering. Some of the most prominent players are Amazon, Apple, Facebook, Google (Alphabet), IBM, Intel, Microsoft, and Nvidia.
All this investment will unlock explosive economic value. Consulting firm McKinsey estimates that AI will add at least $13 trillion to the global economy by 2030.
Sector 5: New Money
Some of the four areas above will intersect with the fifth and final trend on my radar. That is, New Money.
This sector covers companies and technologies that transcend the big banks’ old monopoly on financial services, such as payment transfers, loans, and deposits.
That includes the cryptocurrency world and its underlying blockchain technology.
We believe crypto is an evolving disrupter to Wall Street, traditional central banks like the Federal Reserve, and the main global fiat currencies such as the U.S. dollar, the euro, and the Japanese yen.
How You Can Take Advantage of This Today
In the coming months, my team and I will be writing to you regularly and in a lot more detail about developments in the five areas outlined above… and how to play them for profit.
We will continue to detect which sectors are rising… which sectors are overlapping in ways they never have before… and the best places to put your money to work in 2022.
For now, you can start your search with the SmartETFs Smart Transportation & Technology ETF (MOTO).
MOTO trades on the New York Stock Exchange. It invests in companies in the self-driving and electric vehicle (EV) space.
MOTO is an actively managed fund with a focus on longer-term investments.
It’s one great way to take advantage of the convergence of the top five sectors on my radar for 2022.
Happy investing. I’ll be in touch again soon.
Editor, Inside Wall Street with Nomi Prins
Note From Rogue Economics’ Senior Managing Editor
Last week at Rogue Economics, we welcomed our new editor, Nomi Prins. Nomi is a best-selling author and financial journalist. But once, she was a Wall Street insider.
Nomi worked as a managing director at Goldman Sachs… ran the international analytics group as a senior managing director at Bear Stearns in London… and was a strategist at Lehman Brothers and an analyst at the Chase Manhattan Bank.
Now, Nomi brings her keen understanding of the world of money to Rogue Economics. In these pages, Nomi will show you why she left her career as a global investment banker… and set out to demystify the world of money.
She will also put you on the right side of a disconnect she sees between the markets and the real economy. She’ll do this with help from her team of global experts – including 20-year gold and natural resources investor and trader Eoin Treacy… and longtime metals, tech, and cryptocurrency investor Laurynas Vegys.
Of course, if you prefer not to get daily insights from Nomi and her team, you can unsubscribe at any time. You’ll find a link to do so at the bottom of every Inside Wall Street with Nomi Prins email.
Senior Managing Editor, Rogue Economics
P.S. As always, let us know what you think – good or bad. Write us at [email protected].