5G Wireless: The "Arms Race" of our Generation

By Wayne Mulligan, on Thursday, January 31, 2019

Yesterday, Matt explained why we believe 5G wireless is the “next big thing” in tech.

With its lightning-fast speeds, 5G will ignite an explosion in the IoT and wireless sectors — and generate an extraordinary wave of wealth.

That’s why we’ve been watching this space very closely, and why you should, too.

But for another group of people, 5G isn’t just a way to create wealth…

It’s also the battlefield for the next World War.

Our Generation’s Arms Race

During the Cold War, the United States and Russia engaged in a nuclear arms race.

Both countries stockpiled warheads at an alarming rate, and they nearly brought the world to its knees in the form of a third World War.

But now, according to an article in The New York Times, our current administration believes “the world is engaged in a new arms race — one that involves technology, rather than conventional weaponry.”

You see, as Trump has ramped up his public attacks on China about the trade war, a war with even higher stakes is being waged in private.

As you’ll learn in a moment, whoever wins this war will gain control over the telecommunications industry — and the global Internet — for the next 20 years.

As you’ll see, if the U.S. wins this war, it could mean great things for our country…

And great things for your bank account.

The 5G Wireless War

As Matt explained yesterday, the current standard for high-speed mobile phones and wireless Internet access is something known as 4G technology.

4G technology is currently controlled by U.S. and European companies — companies like Cisco and Qualcomm.

And while 4G is sufficient for basic web-browsing, it doesn’t have anywhere near the capacity that’s needed to power connected devices and the “Internet of Things.”

That’s where 5G comes into play…

With speeds that are up to 100x faster than 4G, 5G will be able to power everything from our phones, to our self-driving cars, to our connected homes.

Therefore, it stands to reason that whoever develops the dominant 5G technologies — the servers, the routers, and everything in between — will gain control over nearly every major facet of our lives.

And that’s why the U.S. and China are engaged in an epic “behind the scenes” arms race…

United States vs. China

You see, China’s companies and central government want to ensure that Chinese tech manufacturers dominate the next-generation of wireless communications.

Not only would this enable them to continue generating wealth and influence for China — but since it would give them “backdoor” access to all the world’s information, it would allow the Chinese government to spy on anyone, anywhere, at any time.

The U.S., Canada, and the E.U. are fighting aggressively to avoid that scenario.

For instance, according to The Times, Trump is expected to “issue an executive order prohibiting American companies from incorporating equipment originating from China in critical telecommunications networks.”

As the E.U. puts its foot down, China is threatening “serious consequences” if Chinese companies are excluded from 5G projects.

Good for Business, Good for You

But here’s the thing:

No matter how much noise China makes, Western nations are unlikely to give Chinese companies a seat at the table.

There’s just too much at risk.

Therefore, we expect the large wireless networking companies based in the U.S. and Europe to continue dominating this space…

And as they start to roll out their 5G networks, we expect their shares to rise.

Meaning, there are some obvious ways to play this trend…

Three Ways to Play this Trend

First, you could invest in the standard companies in wireless networking — names like Cisco Systems (CSCO) and Qualcomm (QCOM).

Second, you could diversify into a wider set of names by investing in a wireless ETF like the iShares U.S. Telecommunications ETF (IYZ), or a 5G Wireless “Motif” like this one »

And finally, you could take a path to earn even bigger profits in this emerging sector…

For example, you could back smaller companies that make the critical components, like computer chips, for the companies selling 5G servers and routers.

These are the opportunities we’re most excited about — after all, this is where your upside is the biggest. So we’re doing research to find the most explosive opportunities.

If you’re interested in hearing about these opportunities in the future, please let us know here »

Happy investing!

Best Regards,
Wayne Mulligan



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