Tesla is more than just an EV Company! Selecting Real Estate markets for your next investments
Crypto Markets are showing great strength!!!!!
🚀 Dear Valued Subscribers,
Welcome to yet another exciting week, with lots to cover in this newsletter. In my last newsletter there was a lot of breaking news to cover, such as the immediate impact that the war in the Middle East may have on the economy, as well as Bitcoin breaking out to the upside on the news of the Blackrock Spot ETF update. While this week doesn’t contain as much breaking news, there is a lot to cover across many diverse markets, and a lot of topics to discuss that may very well lead to great investment opportunities now, or in the very near future. Topics covered in the newsletter are as followed:
IBM Study: 40% Of Workers Will Have To Reskill To Adapt To AI Trends
Tesla Company: More Than Just An EV Company
Cryptocurrency Market Shows GREAT Strength
Diversifying Your Investment Portfolio (Recommended Practices)
Selecting A Real Estate Market: Best Methods
So folks, strap in as we have a lot to cover as we dive into the materials for this week's newsletter!
IBM states 40% of US workers will have to re-skill in the next 3 years… What does this mean for you and how can you prepare for it?
Are Our Jobs At Risk?
The short answer to the question is not exactly…
In research conducted by IBM on the effects that AI will have on the labor market, it stated that 4 out of every 10 people will have to ‘re-skill,’ not because AI is going to replace them, but that it will ‘augment’ most positions. Thus, this doesn’t mean that AI will replace 4 out of every 10 positions, however, it will replace those who don’t evolve and align their skill sets with the emerging AI trends.
Simply put, IBM wrote that “AI won't replace people - but those who use AI will replace people who don’t.” Thus, AI embedding itself into the working world is seemingly inevitable at this point, and rather than fighting it, we should be considering how we can put ourselves into a position to benefit from it. To do so, we must first understand which jobs will be most affected in the earliest stages of this integration.’’
Jobs At Risk RIGHT NOW:
While it’s clear that employees at all levels are going to be impacted by the integration of AI into everyday work life, entry level positions will be most affected in the earliest stages. It was reported that 70% of executive respondents in the IBM study believe that entry-level positions are already being impacted by generative AI.
According to the report, the jobs being affected the most by generative AI and the automation that comes with it are customer support jobs, as well as marketing. Those who find themselves in these roles right now shouldn’t necessarily worry about being replaced by the AI itself. However, if they don’t begin re-skilling and learning how to enhance their skill sets towards managing these AI’s, they may very well be replaced by a candidate who has taken these steps.
Conclusion:
Don’t be the person that complains about AI taking over society, and completely destroying the jobs market. Despite the power of AI, humans are still going to be needed for many reasons. Whether its interpreting the data, tweaking the systems, or managing the AI’s, there are going to be a lot of new needs as these technologies disrupt work processes as we know them.
Here are a few things you can begin doing TODAY to ensure that you are taking the proper steps in evolving with this trend:
Develop Digital Literacy:
Understanding Basic Technology: Familiarize yourself with fundamental digital tools and platforms. This includes word processing, spreadsheets, and presentation software.
Data Literacy: Learn how to interpret and analyze data. Many AI applications rely on data, so understanding data analysis and interpretation is invaluable.
Embrace Continuous Learning:
Online Courses and MOOCs: Enroll in online courses and Massive Open Online Courses (MOOCs) related to AI, machine learning, and data science. Platforms like Coursera, edX, and Udacity offer excellent resources.
Professional Certifications: Pursue certifications in AI and related technologies. Certifications provide a structured learning path and validate your skills to potential employers.
Develop Soft Skills:
Critical Thinking: Enhance your critical thinking abilities. AI can process data, but human judgment and critical thinking are necessary to make sense of the results.
Creativity: Cultivate your creative skills. While AI can generate ideas, human creativity is essential for innovation and problem-solving.
Adaptability: Embrace change and be open to learning new skills. The technology landscape evolves rapidly, and being adaptable is crucial.
Remember, reskilling is not a one-time effort but a continuous process. Stay curious, keep learning, and be proactive in adapting to new technologies and skills demanded by the evolving job market.
How TESLA Has Cemented Themselves As A Tech Company That Spans Far Past Their Electric Vehicle Division:
Tesla is positioned to be a big winner in the automotive industry and beyond for several reasons, including its focus on autonomous taxis, AI integration, and its identity as a technology company rather than just a vehicle manufacturer.
Autonomous Taxis:
Fleet of Self-Driving Cars: Tesla is actively working on developing fully autonomous vehicles. The vision of a fleet of self-driving cars means Tesla could potentially operate a ride-sharing service without the need for human drivers. This not only reduces operational costs but also opens up a new potential revenue stream.
Tesla Network: Elon Musk, Tesla's CEO, has mentioned the concept of the "Tesla Network," where Tesla owners can add their cars to a shared fleet, allowing them to generate income when they are not using their vehicles. This approach transforms Tesla into a player in the sharing economy.
AI Integration:
Advanced AI Chipsets: Tesla's vehicles are equipped with powerful AI chipsets. These chips process data from sensors, cameras, and radars, enabling advanced driver-assistance features and paving the way for full autonomy.
Over-the-Air (OTA) Updates: Tesla can push software updates to its vehicles remotely. This means that as AI technology advances, Tesla cars can improve their capabilities without requiring hardware upgrades. This continuous improvement is a significant advantage in the rapidly evolving field of AI.
Technology Company Mindset:
Innovation and R&D: Tesla sees itself as a technology company that happens to make cars. This perspective drives continuous innovation in areas like battery technology, AI, and software development.
Vertical Integration: Tesla controls many aspects of its supply chain, including battery production. By vertically integrating, Tesla can optimize its technologies for its specific needs, giving it an edge in efficiency and innovation.
Energy Ecosystem:
Energy Products: Tesla not only produces electric cars but also energy storage solutions like the Powerwall and solar products. This diversification into the energy sector creates additional revenue streams and reduces reliance solely on vehicle sales.
Sustainable Energy: Tesla's mission is to accelerate the world's transition to sustainable energy. This vision resonates with environmentally conscious consumers and investors, giving Tesla a competitive advantage in the growing market for green technologies.
In summary, Tesla's strategic focus on autonomous taxis, integration of AI, its identity as a technology company, and its diversified approach to energy solutions position it as a major player in the automotive industry and a key innovator in the broader technology landscape.
Crypto Market Strength… Update On Bitcoin (And Select Altcoins We Are Watching)!
Bitcoin Strength:
Following its MASSIVE move through resistance to $35,000, Bitcoin remains strong! As covered in last week's letter, Bitcoin had a massive move up, in large part due to the positive developments Blackrock’s process for bringing a Bitcoin Spot ETF to the market. While most crypto pumps (in the bear market) have been immediately erased by pullbacks, Bitcoin remains in the mid $34,000 range a week after its move up. This should offer encouragement, though we still should be somewhat cautious!
You may then be asking “Robert, why should we remain cautious, it seems to be all great news?!”
As an investor, it's always extremely important to remain unbiased, and to not let emotion dictate your financial decisions. Like I said, this move is extremely encouraging, however, Bitcoin isn’t in the clear yet. Here’s why…
Approximately $31,800 marked SIGNIFICANT price resistance for BTC throughout its entire bear market. Since finally breaking through that resistance, we haven’t seen any back tests of that zone yet. One thing that more technical traders look for when breaking MAJOR resistance (like Bitcoin just did at $31,800), is a “re-test of the scene of the crime.”
Thus, while Bitcoin doesn’t necessarily have to back-test that zone, I’d deem the odds as probable that it will. If it fails to bounce from that zone, the underlying strength of Bitcoin in the short-term may still be in question. If however it does back-test that zone, and IS able to bounce from it, my ‘encouragement’ will be transformed into strong confidence in Bitcoins strength.
Altcoins We Like (A Couple):
Chainlink (LINKUSD)
Chainlink (LINK) is a technology that helps computer programs on the internet (called smart contracts) use information from the real world, like weather or stock prices. It ensures this information is accurate and secure. Chainlink uses a digital currency called LINK to make this happen. It's important because it allows smart contracts to do more complex tasks, making online agreements safer and more reliable. Here are some of the reasons we like Chainlink:
Real-World Use: Chainlink solves a practical problem by connecting blockchain smart contracts with real-world data, which has a wide range of applications in various industries, making it a valuable technology.
Decentralization: Chainlink operates in a decentralized manner, which means there's no single point of control, enhancing security and trust in the network.
Market Demand: As the demand for smart contracts and decentralized applications (dApps) increases, the need for reliable and secure oracle services like Chainlink may also rise, potentially driving its value.
Price Action: Over the last 2 weeks, Chainlink has been ripping upwards and has been up as much as 64%. This is spectacular price action for such a short period of time… imagine what it will do when we are in a confirmed bull market if it's already doing this now…
Solana (SOLUSD)
Solana is a high-performance blockchain platform designed for decentralized applications and cryptocurrencies. It aims to provide fast, secure, and scalable solutions for developers and users. Here are some of the KEY reasons that we like Solana:
Speed and Scalability: Solana is known for its exceptional speed and scalability. It uses a unique consensus algorithm called Proof of History (PoH) combined with a high-performance protocol called Tower BFT (Byzantine Fault Tolerance). This combination allows Solana to handle a high volume of transactions quickly and efficiently.
Low Transaction Fees: Due to its efficient architecture, Solana can process transactions at a fraction of a cent, making it cost-effective for users and developers.
Strong Ecosystem: Solana has a growing ecosystem of projects and developers building on its platform. This diverse range of applications contributes to the platform's overall utility and attractiveness.
Security: Solana prioritizes security and uses advanced cryptographic techniques to ensure the safety of its network and user assets.
Price Action: Over the last two weeks into the start of this week, SOL has been ripping up as well, up just under 60% in that time period. This is extremely bullish price action, and we will continue to monitor this as the new week unfolds.
The Importance Of Diversifying Your Investment Portfolio (With Recommended Practices To Start Doing So)
Why Diversify?
Far too often, I observe individuals putting all their resources into their favorite investments, be it cryptocurrency or tech stocks, hoping for significant profits. While this approach can yield substantial gains if their predictions and timing align, it can also result in substantial financial and emotional distress if they miscalculate either or both aspects. To mitigate the risk of relying entirely on a single asset class, diversification becomes crucial. By spreading investments across different areas, one avoids being trapped in an "all-in" position if their timing proves wrong.
Consider the following recommended practices for diversifying your investment portfolio:
Mix Different Asset Types: Diversify between traditional assets like stocks, bonds, real estate, and commodities (such as gold), and newer, potentially higher-risk assets like cryptocurrencies. This mix spreads risk across different types of investments.
Variety Within Categories: Within each asset type, diversify further. For example, in stocks, consider a mix of large-cap, mid-cap, and small-cap companies. In cryptocurrencies, diversify across well-established ones like Bitcoin and Ethereum, as well as promising newer options.
Regular Rebalancing: Periodically review your portfolio. If one type of asset performs exceptionally well, it may skew your portfolio. Rebalancing involves selling some of the outperforming assets and reinvesting in underperforming or different ones to maintain your desired balance.
Global Perspective: Explore international investments. Different economies may be in different phases of growth or decline, providing a buffer against economic downturns in any single country.
While these practices may reduce your overall upside potential in the short-term, they will significantly mitigate your risk in the long-term. When it comes to investing, minimizing and managing risk is the name of the game if you’re trying to create long-term sustainability, and by diversifying, you are doing EXACTLY that!
Selecting A Real Estate Market: Considerations
Investing in real estate can be a lucrative venture, but choosing the right market is crucial for your success. Here are my top takeaways to determine a great real estate market for investing:
Job Market and Economic Growth:
Low Unemployment Rates: Look for areas with low unemployment rates or declining trends, as this indicates a stable job market.
Diverse Industries: Cities with a diverse range of industries are often more stable. Avoid areas heavily reliant on a single industry.
Population Growth and Demographics:
Population Growth: Invest in areas experiencing population growth. Growing populations often lead to increased housing demand.
Demographic Trends: Understand the demographics of the area. For example, areas with a large number of millennials might be good for rental properties.
Infrastructure and Development:
Infrastructure Investments: Check for planned or ongoing infrastructure projects such as new highways, public transportation, or commercial developments. These can boost property values.
Urban Development: Areas undergoing revitalization or gentrification often present opportunities for value appreciation.
Rental Market Analysis:
Rental Demand: Research the demand for rental properties. Look for low vacancy rates and a strong rental market. High demand relative to supply is favorable for investors.
Rent-to-Income Ratio: Evaluate the ratio of average rent to average income. A lower ratio indicates affordability, which can attract more tenants.
Market Supply and Demand:
Housing Inventory: Monitor the housing inventory levels. Low inventory often drives up property prices.
Days on Market: Analyze the average number of days a property stays on the market before being sold. Shorter durations indicate a seller's market.
Property Price Trends and Appreciation:
Historical Price Trends: Study past price trends in the area. Steady appreciation over the years can indicate a stable market.
Future Growth Potential: Look for signs of future price appreciation, such as upcoming developments or increasing demand from nearby areas.
Local Amenities and Quality of Life:
Schools and Universities: Proximity to good schools and universities often attracts families, creating a stable rental market.
Recreational Areas and Services: Access to parks, shopping centers, restaurants, and cultural attractions can make an area more appealing to tenants.
Crime Rates and Safety:
Low Crime Rates: Areas with low crime rates are naturally more attractive to renters and buyers.
Community Safety: Safe neighborhoods with active community involvement tend to retain property values.
By thoroughly researching these factors, you can make informed decisions about where to invest in real estate. Remember that each market is unique, so it's essential to do comprehensive, location-specific research before making any investment decisions. Consulting with local real estate experts or professionals can also provide valuable insights into the market conditions.
A MAJOR Shout Out To The Fundrise Innovation Fund!!
Fundrise has officially launched a pre-IPO venture fund that’s available for all of their users, and we’re excited by everything they've put together!
The fund mainly focuses on ‘growth,’ which means they’re investing in pre-IPO companies leveraging AI & ML, modern data infrastructure, development operations, financial technology, and property technology.
Thanks to Fundrise’s Innovation Fund, my portfolio can gain exposure to early stage startups like these, where the upside potential is through the roof!
So, I just wanted to applaud this type of innovation, and shout out Fundrise Innovation Fund for their great success in achieving their mission! Check the Fundrise link in my bio to read further.