If you are a conservative American, you will no doubt see dark clouds on the horizon. There is much to worry about but amid the doom and gloom is a silver lining that has massive profit potential for eagle-eyed investors.
Before zooming in on the money-making idea, let’s take a quick look at the headwinds for conservative-minded investors concerned about the future for America.
First, Chinese venture capital investments have eclipsed U.S. venture investments for the first time ever. What’s the big deal you say? Well, Silicon Valley may get thrown under the bus in Washington regularly but it’s still the eco-system that produced Google, Apple, Facebook, and thousands of other globally known firms. And those successes didn’t stem from Steve Jobs or Mark Zuckerberg working in garages by themselves. They were spurred on by massive venture capital investments.
It is obvious China has figured out that economic prosperity stems from innovation and capital is needed to catalyze growth. China is enjoying massive success from its strategic focus on innovation. For every Uber, there is a Didi Chuxing. For every Amazon there is an Alibaba. And for every Netflix there is an iQiyi.
As Chinese firms mushroom in size and take on the world, expect American firms to struggle to dominate globally as they have in the past. Case in point, Uber has already had to cede ground to Didi Chuxing in its battle for ridehailing users. And even the mighty Amazon struggles against Jack Ma’s juggernaut Alibaba. The headwinds will only increase as Chinese firms receive more capital support and take on their U.S. rivals.
Second, the political climate grows ever more combative and extreme. Take the most recent comments from James Comey as a snapshot in time that encapsulate the disgust for other viewpoints. Shocking as it may seem, the former FBI head (and remember the FBI is supposed to be an impartial government body) stated “All who believe in this country’s values must vote for Democrats this fall.” The inference is clear. Vote Republican and you are voting against American values and patriotism according to James Comey.
Similar extremes in sentiment are apparent wherever you look. Look no further than Kathy Griffin’s “skit” holding President Trump’s severed head as an example.
Perhaps this is the age of peak hatred when these are just a sampling of the abusive comments hurled across the aisle to fellow Americans who dare to have an opposing viewpoint.
Third, Russia-gate. To rile up the public sufficiently to promote war, politicians need an enemy, a bogeyman.
Historically, Russia has filled that role nicely. Nevermind the facts that it has been proven that weapons of mass destruction never existed in Iraq and the Gulf of Tonkin incident that provoked the Vietnam War was a gigantic misinformation campaign perpetrated on the American people.
Most people don’t dig deeper. They don’t read beyond what is reported in the headlines. And they won’t question the TV news so propaganda is highly effective.
Just take the recent events where Trump was accused of high crimes and misdemeanours by John Brennan, former CIA Director, for daring to question U.S. intelligence. Now keep in mind faulty U.S. intelligence led to the war in Iraq and faulty U.S. intelligence reported a U.S. military ship was attacked before all hell broke loose in Vietnam. Perhaps questioning intelligence is in fact the patriotic duty of Americans in order to prevent future wars?
In a world where black is white and up is down, it’s hard to be positive but amid the looming clouds on the horizon, silver linings exist. For profit-seeking investors, the decline in confidence in government has always historically led to a migration to private assets. As the public at large grows ever more unhappy with their Washington representatives, expect capital to move from public sector investments, like government bonds to private assets.
One industry of high potential in the coming years is the casino industry. The Supreme Court recently voted to allow states to legalize gambling. This is a ground-breaking shift in policy which opens the doors to billion dollar opportunities.
It’s no surprise that following the news, Silicon Valley growth equity firm, Technology Crossover Ventures, took a stake in SportRadar, a sports data provider, at a massive valuation.
And in coming years, the casinos with the best technology to make online gambling accessible to the masses stands to make billions of dollars. From Wynn to MGM, the opportunities are enormous. Now the only question is will you join them for the ride?
The author has no position in any of the stocks mentioned. Financhill has a disclosure policy. This post may contain affiliate links or links from our sponsors.