Today’s Profit Watch makes the case for an exciting future ahead of us.
But it’s not because of Saturday’s election result. It’s more to do with Amazon supremo Jeff Bezos. We’ll come back to that shortly.
Here’s why I bring it up. I had lunch with a new acquaintance last week. Only then did I discover he’s a very wealthy man. Turns out he spent a decade building up a business before he sold out.
Sounds like he’s a millionaire many times over. But the cost on his family life and health was high.
At one point, he spoke into the air and no one in particular, stating, ‘When I look back, I’m amazed what I did. I didn’t have a day off — let alone a holiday — for 10 years. Would I do it again? No. I don’t think so.’
We spoke for a long time. My friend is worried about the climate he’s leaving behind for his children and theirs.
But one fear ruled them all: Automation wiping out the global middle class…perhaps human work entirely.
That’s not a view I share (just look around — there’s so much to do everywhere). But it’s also a viewpoint limited by our immediate frame of reference.
Don’t fall into this trap…
Predicted no one: Convicts to aristocrats
For example, it made no sense for someone in 1788 to envision that workers worldwide would flock to Australia for work.
But they would, because there was gold to be had. Indeed, Australia went from a prison colony to the richest country in the world in under a century. Now, how’s that for confounding expectations?
What am I going on about? I’d suggest we need to start thinking the same way about space exploration. If there’s not enough work to do down here on Earth, I’m sure there’s plenty coming up in the solar system.
That brings us to Jeff Bezos, supremo of uber company Amazon and the richest man on the planet.
Jeff Bezos wants to take humanity into space…and, if anyone is going to do it, it’s no stretch to imagine it’s going to be him.
Australia's Next Great Boom
If Callum Newman’s analysis is right, Australian resources are at the beginning of a comeback. This report explains Callum’s ‘case for commodities’ for this year and next. Plus, get a free subscription to Australia’s newest, most forward-looking daily investment email, Profit Watch. Enter your email address below and click ‘Send Me My FREE Report’.
This might be why May 2019 could go down in history as an epic moment. Jeff Bezos presented on his vision this month. According to The New York Times…
‘“We are going to build a road to space,” Mr. Bezos said. “And then amazing things will happen.”’
Blue Origin is his rocket company. Bezos sees humans colonising space and mining the resources that are available to sustain a civilisation.
This is not some abstract idea he’s blabbing on about. Already, Blue Origin has produced a lunar lander called Blue Moon, powered by liquid hydrogen. Bezos expects it to be on the moon by 2024.
Crazy? Maybe. But not short of money. Bezos has the ability to sell US$1 billion a year in Amazon stock to finance Blue Origin. He will run out of years before he runs out of billions.
I wrote an article in 2016 about the coming privatisation of space. Militarisation won’t be far behind, either. The race will be on for each country to try and lock up what it can.
Already, the US government is flagging a return of US astronauts to the moon by 2024 as well. That’s above five years way. That’s not long at all.
Consider the implication here. There are people the world over prepared to bore you to death with theories that the global economy is some perpetual, low-growth grind forevermore.
Hello! The prospect of the trillions in investment and potential natural resource rents in space could send markets into a hugely bullish period — like 1982-2000 on steroids.
Granted, it won’t all happen tomorrow. But the trend is rolling now…and I’m not sure anything can stop it.
Military spending: Bullish!
The stakes are too high. The Chinese and US governments will find ways to finance what they need to in order to capture what they can.
You might be worried about government debts. But The Economist reported last week that military spending was at a record high last year.
And no wonder. The threats keep changing. Just this month, we discovered that drones were used to attack Saudi oil pipelines.
Military spending like this is usually bullish for markets because the sums required are so enormous. It’s another reason why I’m positive about the Aussie share market this year.
It also leads to specific opportunities on the ASX. Back in February, I wrote about one right here in Profit Watch.
It’s a ship builder called Austal Limited [ASX:ASB]. It was around $2.20 then. It’s $2.74 now.
But ship building is a capital-intensive business, and orders take time to acquire and fulfil.
I prefer companies that can release more orders over a faster timeframe. And this month, I’ve found one. My report on that will go out in about two days.
I’m excited. Contrary to current perception, there’s a lot of profitable opportunities in the markets right now. One of my stocks is up 70% since 3 April. My April recommendation went up 50% in about two weeks.
And now we have a Liberal government staying in power, contrary to expectations. I think the rush of relief from self-managed super funds and fund managers could see a wave of optimism sweep through the Aussie market.
Here’s something else that happened over the weekend: Calls for iron ore to go to US$110 — at least — came out. This could send billions though the big miners and the Aussie government.
I’ll keep saying it: It’s a time to be bullish. Get on board for the ride here.