For today’s edition of Inside Wall Street, I filmed a short video update for you instead of my usual written commentary.
On a recent trip to Austin, Texas, I stopped by the newly opened Tesla Gigafactory. It’s huge – the size of 15 city blocks. And it cost $1.1 billion to build.
Tesla is a prime example of a company developing sustainable tech solutions that also improve efficiency. In other words, it blends two of my key investment trends right now – Transformative Technology and New Energy.
Besides Tesla, many of the world’s largest tech companies also have bases in Austin. That includes Google, Apple, Oracle, Amazon, Facebook, and SpaceX. It’s giving Silicon Valley a run for its money.
So it’s no surprise that venture capitalists are also spending a lot of time – and money – there. In 2021, they invested $5.5 billion in companies in Austin.
And right now, companies that blend New Energy and Transformative Technology innovation are prime targets for Wall Street money flows.
So today, I’ll show you a simple way to follow that money and stay one step ahead of the trend…
And as always, I’ve also included a transcript.
I hope you enjoy my video update from Austin. Let me know what you think at [email protected].
Happy investing, and I’ll be in touch again soon.
Regards,
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Nomi Prins
Editor, Inside Wall Street with Nomi Prins
P.S. Following the money… That’s at the crux of what I do here at Rogue Economics. My boots-on-the-ground research, such as my recent trip to Austin, helps me identify exactly where that money will flow.
And over the past two years, I’ve been working on a new project to track Wall Street and Washington’s money flows. What I learned will blow your mind…
See, we’re on the cusp of something I believe will trigger a $4 trillion market shock. And it will kick off the next chapter of The Great Distortion I’ve been following for you in these pages…
I’ll tell you all about it at a special strategy session I’m having on Wednesday, June 15 at 8 p.m. ET. Simply save your spot here, and I’ll see you there.
TRANSCRIPT
Hi, everyone. Nomi here. I’m coming to you from Gigafactory, Texas, aka Tesla country. It’s actually in Greater Austin in central Texas Hill Country.
For decades, the most famous economic driver in Greater Austin has been Dell Technologies. But today, Greater Austin is one of the fastest-growing cities and tech hubs in the entire country.
I’m going to tell you why that matters in a moment…
But first, I want to talk to you about the economic undercurrent here. Austin’s been undergoing this exponential economic boom. That’s because of Transformative Technology, in particular, but also other things.
Austin is now also home to the secondary offices of many of the world’s largest tech companies. That includes Google, Apple, Oracle, Amazon, Facebook, and SpaceX.
And that’s why venture capitalists have been flying into Austin and giving Silicon Valley a run for its money.
The numbers are super impressive. Venture capital (VC) firms invested over $5.5 billion in 412 deals here in 2021. That’s more than double the amount of capital they invested in 2020. The top 10 deals brought in over $100 million each.
That and lower taxes is part of the reason Elon Musk moved Tesla headquarters to Austin from Silicon Valley in December 2021.
Austin’s also home to his state-of-the-art, energy-optimized $1.1 billion Gigafactory behind me. It’s the size of 15 city blocks. It’s going to manufacture electric vehicles (EVs) to keep up with the escalating demand in that space.
You see, as energy prices have jumped 30% this year, consumers and businesses alike are seeking alternatives and to get energy more cheaply.
Wall Street’s largest bank, JP Morgan, predicted that the national average gas price could hit over $6 by August.
But there’s a silver lining and opportunity here that goes beyond just EVs. There’s a paradigm shift unfolding right now in how mega companies power their own enterprises. Texas could be ground zero for this transformation.
Profit From the New Energy-Transformative Tech Blend
Over the last several months, I’ve spoken to you about five main themes I see stemming from the Great Distortion between the financial markets and the real economy.
These five themes are New Energy, Infrastructure, Transformative Technology, Meta-Reality, and New Money.
We’ve focused a lot on New Energy recently. But an exciting and very profitable trend is developing in what I call the “blend” between New Energy and Transformative Technology industries.
Industry leaders in Texas are seeking new energy alternatives, both for economic and also for efficiency purposes. That means mega-companies, and also savvy startups, are turning to cleaner, sustainable energy sources in order to power their own operations.
Yes, these outcomes are also good for the environment. But they are increasingly cost-effective and therefore profitable.
The truth is that globally, about $40 trillion worth of money will shift away from the fossil fuel sector this year alone.
That doesn’t mean oil and gas are going away anytime soon. It’s not like that.
But it does mean that Wall Street will be pouring money into the next best thing, as it always does. I know this from my experience there.
Based on our analysis, that money will flow into more sustainable investments that harness that blend in both Transformative Technology and New Energy trends.
And that spells opportunity for you.
Follow the Money for Long-Term Gains
This is not about politics. It’s about money flow. And by doing what Wall Street does and following the money, you can stay one step ahead.
Companies like Tesla and Emerson moved to Austin to expand their enterprises. Their innovative technologies offer sustainable tech solutions that also improve efficiency.
States like Texas face avoidable energy blackouts and mounting energy pressures from growing populations. So businesses here that blend Transformative Technology and New Energy methods – from wind to solar to geothermal power – present excellent investment opportunities for the long haul.
To take advantage of this trend, I recommend the iShares Global Clean Energy ETF (ICLN).
Happy investing, and I will talk to you soon.
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