MRI
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On July 3, 1977, a historic event took place: The first magnetic resonance imaging (MRI) exam on a live human patient was performed. It was a technology that was a long time in the making, with the first scans taking place as early as the 1930s.
These days, this minimally invasive diagnostic tool is more in demand than ever. This is especially true considering the rise in chronic diseases, the growth of the geriatric population, and an increasing number of hospital and diagnostic centers.
MRIs give doctors more information for diagnosis than ever before and notably, make early cancer diagnosis more possible and commonplace.
Here’s what investors should know about the MRI market.
What Is MRI Technology?
An MRI is a “non-invasive imaging technology that produces three dimensional detailed anatomical images.” The images that it produces allow doctors to identify tumors, fractures, and other anatomical anomalies.
MRIs can do a multitude of things. When they image the head and neck, they can detect brain tumors, traumatic brain injury, developmental anomalies, multiple sclerosis, stroke, dementia, infection, and more.
When they image arteries and veins, they can detect aneurysms, blockages of the blood vessels, carotid artery disease, and arteriovenous malformations.
When they image the spine, they can detect herniated discs, pinched nerves, spinal tumors, spinal cord compression, and fractures.
MRIs generate these images by using large magnets and radiofrequency concurrently. The magnets function to cause protons in the body to align with the magnetic field. Then, the radiofrequency current is pulsed, stimulating the proteins. When the radiofrequency is turned off, the protons realign with the magnetic field. A computer then captures the movement of the proteins, converting the signals created when the protons realign to the magnetic field into an image. These internal images tell doctors a lot.
To have an MRI done, patients lay on a table that slides into a long tube. The tube holds a very large, strong magnet. Magnets used in MRIs are approximately 3,000 times stronger than the magnets that stick to a refrigerator and can be turned on and off. Then, the radio frequencies are pulsed. Often, contrast dyes are given to the patient in advance of an MRI. These are absorbed by the body and result in a quicker response from the tissue to the magnetic and radio waves, resulting in clearer pictures.
MRIs tend to be more expensive than X-ray imaging or CT scanning, but they offer lots of benefits. For example, MRIs are generally preferred for brain imaging because it does not employ x-rays or other radiation.
Why Invest in MRI Technology?
The global market for MRI systems is expected to grow from $6.2 billion in 2020 to $7.8 billion by 2025. This is just a slice of the Medical Imaging Market as a whole, which is expected to reach $82.5 billion by 2027, according to Data Bridge Market Research.
MRI technology is advancing in more ways than one and making better medical imaging more possible than ever.
First, improved software is generating more insights than before. Some software is enabling faster contrast scans, for example. Other software is allowing patients with implanted devices to have scans done. Notably, advancing software is also allowing for previously challenging scans of the heart and the air-filled lungs to be taken.
In addition to advancing software, MRIs are also launching with stronger magnets than ever before. These machines are producing more detailed images. Most MRI machines are 1.5 tesla (T) machines, with some as strong as 3.0T. In November 2020, the FDA approved 7.0T machine. GE Healthcare MR, who received the approval, anticipates that the new scanner will be “a critical tool in research for neurological disorders like Alzheimer’s disease and mild traumatic brain injury,” according to a press release.
As technology improves, MRIs are becoming more instrumental in healthcare diagnosis. Not only are MRIs continuing to gain traction for diagnosis and treatment of neurological disorders, including brain injuries, but MRIs are also continuing to improve early cancer diagnosis. For example, a Phase III randomized clinical trial demonstrated that an MRI paired with targeted biopsies (MRI-TBx) has the potential to make prostate cancer diagnosis both more accurate and less invasive.
MRIs can even be used as early intervention tools, in some instances. For example, MRIs have been used to assess brain development and literacy skills in preschoolers by measuring the gray matter surface on the brain.
MRI technology is also finding applications beyond clinical settings. For example, the U.S. Department of Energy recently selected GE Research Lab to “build and test a prototype of a high-efficiency ultra-light low temperature superconducting (LTS) generator, leveraging innovations from GE’s MRI business.” As it turns out, years of figuring out how to increase the magnetic field to produce better medical images is now helping researchers to figure out how to make more efficient generators.
MRI technology has changed diagnostics, and it isn’t done yet. Investors should take note of the ongoing innovations in MRI technology and their potential to continue to improve early diagnostics and apply to other critical industries.
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This blog is sponsored by Magnifi. The information and data are as of the Jan 28, 2021 (publish date) unless otherwise noted and subject to change. This material is provided for informational purposes only and should not be construed as individualized investment advice or an offer or solicitation to buy or sell securities tailored to your needs. This information covers investment and market activity, industry or sector trends, or other broad-based economic or market conditions and should not be construed as investment research or advice. Investors are urged to consult with their financial advisors before buying or selling any securities. Although certain information has been obtained from sources believed to be reliable, we do not guarantee its accuracy, completeness or fairness. Past performance is no guarantee of future results. This content may not be reproduced or distributed to any person in whole or in part without the prior written consent of Magnifi. As a technology company, Magnifi provides access to tools and will be compensated for providing such access. Magnifi does not provide broker-dealer or custodial services.
Automotive
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The COVID pandemic hit the auto industry hard. In the spring of 2020, the pandemic closed many auto retail stores for a month or longer… and shut down many factories for as many as two months. People stayed home, saved their money, stopped commuting… and stopped buying cars—especially during the first part of the year.
In other words, the previously roaring automotive industry and its global supply chain came to a halt.
This hit car company profits big time. The automotive industry sold about 14.5 million cars and light trucks last year, amounting to a 15% decline from 2019, and the lowest level since 2012.
That said… car companies and consumers alike are expecting a better 2021.
According to predictions by Fitch Ratings-Chicago, sales of U.S. light vehicle sales in 2021 are anticipated to total 15.6 million. Still, 2021 sales are expected to fall about 8% below 2019. According to predictions by Fitch, sales won’t reach that of 2019 until 2022 at the earliest.
And although COVID takes the headlines for 2020, more exciting disruptions—including electric mobility, advancements of driverless cars and automation technology, and the rise of ridesharing patronage—were taking place in the industry even before COVID-19.
Here’s what investors should know about the automotive industry.
What Is the Automotive industry?
On any one car, there are about 30,000 parts. Before a car is ever assembled, the making of all of those parts takes a lot of hands and a lot of work.
In the U.S., the automotive industry employs tens of thousands of skilled workers in all 50 states, which is in part why it’s considered a powerful engine driving the U.S. economy.
Globally, the automotive industry employs roughly 34 million workers. Approximately 25% of these workers are employed by automakers or original equipment manufacturers (OEMs).
What are original equipment manufacturers (OEMs), exactly? Automakers don’t make every piece of a car or truck. Instead, they buy them from OEMs. This leaves other companies to focus on rubber production for items like tires and belts, for example.
The automotive industry extends beyond just auto manufacturers and OEMs. There is an additional market for aftermarket parts, a market for individual and fleet vehicle sales, a market for vehicle rentals, repairs, and more. Collectively, these subsets of the industry help the automotive industry to create jobs across sectors.
These days, as cars get smarter, their parts are becoming more complicated. Electric cars for example, require a range of new, component parts, including lithium batteries, chargers and controllers.
The global supply chain that keeps finished cars moving off of the line is crucial to the manufacture of finished vehicles. A global semiconductor shortage is expected to majorly impact automakers this year. Ford Motor Co., for one, plans to slash its vehicle output by up to 20% in the first quarter of 2021 because of the lack of parts.
The increasing need for new, smarter parts will no doubt power increased demand across the supply chain.
Why Invest in the Automotive Industry?
As of early 2021, inventory is running short and manufacturing engines are powering up again to meet new demand.
In February, for example, U.S. manufacturing was operating at the fastest pace it has in three years because of a surge in new orders. According to the Institute for Supply Management, manufacturing activity rose to 60.8% in February, up from 58.7% in January. That marks the strongest performance since February 2018 and indicates an expansion in the manufacturing industry.
Like with many other industries, the pandemic has accelerated existing trends in the auto industry, including both the growth of online traffic and a “greater willingness of OEMs to cooperate with partners—automotive and otherwise—to address challenges,” according to McKinsey.
From an industry and consumer standpoint, the pause of the pandemic has also ushered in new excitement for the electric car, which are key to reducing emissions. According to Fitch, as emissions regulations tighten in global markets, specifically China and Europe, the pace of vehicle electrification is increasing.
In recent years, more and more automakers are creating new electric vehicles (EVs). That said, the EV market is not without hurdles. Namely, they are still up against the familiarity and affordability of standard vehicles in the face of near-term uncertainty, according to the 2021 Deloitte Global Automotive Consumer Study.
Beyond electric cars, dealers and car makers alike are stressing customer experience, especially online. Although most customers still like to see their car before buying, no doubt, COVID has put a damper on the test drive. This is pushing more consumers to make their buying decisions online. So, while cars are getting smarter, car shopping is too, as car makers build data platforms to “to elevate and evolve the customer experience.”
Autonomous vehicles are also in the works, although they aren’t expected for large scale rollout just yet.
In 2019, the global autonomous vehicle processor market reached $5.07 billion. That number is expected to grow to $42.20 billion by 2030. According to one estimate by UBS Group AG analysts, the global robo-taxi market could be worth as much as $2 trillion a year by 2030. That’s not to mention the impact that the mass adoption of driverless vehicles could have on other industries who employ the technology.
When they are finally ready, not only will self-driving cars allow drivers to do other things while their cars drive along, they should reduce collisions and traffic deaths by as much as 80%.
The automotive industry will continue to be a key economic driver long after the pandemic, especially as innovations like electric power and autonomous driving take hold. While the industry is still coming back from the impacts of COVID-19, investors shouldn’t shy away from this powerhouse industry.
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The information and data are as of the May 12, 2021 (publish date) unless otherwise noted and subject to change. This blog is sponsored by Magnifi.
Sensors
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From smart appliances to medical imaging equipment to industry-scale innovations… sensors are playing a big role in advancing technology and connecting more and more information to the Internet of Things.
Some sensors can even monitor wound healing and stimulate the healing process.
The potential scale and reach of this market is enormous. In 2017, the global sensor market was valued at $139 billion, according to a report by Allied Market Research. By 2025, it is projected to reach $287 billion. And the global market for smart appliances alone is projected to reach $65.3 billion by 2027. That’s up from about $25.9 billion in 2020.
Here’s what investors should know about sensors.
What Are Sensors?
Sensors are devices that “detect events or changes in the environment and then provide the corresponding output. They sense physical input such as light, heat, motion, moisture, pressure, or any other entity, and respond by producing an output on a display or transmit the information in electronic form for further processing.”
Types of sensors include but are not limited to motion sensors, light sensors, thermal sensors, wind sensors, and smoke sensors.
Sensors are used in a variety of environments and applications, including flood and water level monitoring systems, environmental monitoring, traffic monitoring and controlling, energy saving in artificial lighting, remote system monitoring, equipment fault diagnostics, and precision agriculture and animal tracking, according to the report by Allied Market Research.
Why Invest in Sensors?
Sensors might be an industry to themselves, but they aren’t limited to one industry by any means. They play a critical role in the advancement of the Internet of Things and industrial production, to name a few. They also make our cars and our phones smarter, monitor environmental changes, advance robotics, and more. For investors, that means worlds of possibilities.
Consider that there are approximately three million supervisory control and data acquisition (SCADA) systems globally. These industrial control systems offer real-time business IT in industries including water and wastewater, oil and gas, power/electric utilities, transit systems, telecom, and aquaculture. SCADA systems are considered the “brains of the plant,” but they wouldn’t be possible without sensors. Sensors give these systems vital information, functioning as their eyes and ears. As their sensors become “smarter,” they are improving operations and results at three million plants.
The applications for sensors go far beyond industrial efficiency.
The overall gas sensors market reached $1.1 billion in 2021, and is expected to grow to $1.5 billion by 2026, according to a market research report published by MarketsandMarkets. Gas sensors are in high demand globally in critical industries—for cloud computing, IOT deployment, and consumer electronics. They are also crucial for air quality monitoring for smart cities. According to one report, spending on smart city technology is expected to reach $327 billion by 2025.
The global military sensors market size was $25.94 billion in 2019 and is projected to reach $34.58 billion by 2027, according to a new report by Fortune Business Insights. This is in part driven by the growth of Wireless Sensor Network (WSN) technology.
The wireless sensors network market was valued at $46.76 billion in 2020 and is expected to reach $123.93 billion by 2026, according to a Market Insights report. Wireless sensors are making it possible to remotely monitor patients with wearable biosensors, among many other things. In healthcare, they are also enabling smart thermometers, connected inhalers, and automated insulin delivery (AID) systems.
Smartphones are so smart in part because of their sensors. This everyday device includes proximity sensors, accelerometer/motion sensors, moisture sensors, gyroscopes, touch ID and face ID. One group of researchers are even working on a smartphone biosensor that detects COVID-19.
Smart cars will have many more sensors beyond those of a smartphone. Sensors on smart cars will be their eyes and ears, sending the information to the brains of the car to achieve better decision making.
Sensors make our world as it exists today possible. They provide solutions for everything from advanced robotics and automation to healthcare IOT to smart cities. In the post-pandemic word, data driven solutions are expected to be increasingly in-demand. This means that sensors will be the eyes of many, many technologies to come.
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Magnifi is changing the way we shop for investments, with the world’s first semantic search engine for finance that helps users discover, compare and buy investment products such as ETFs, mutual funds and stocks. Open a Magnifi investment account today.
The information and data are as of the May 5 ,2021 (publish date) unless otherwise noted and subject to change. This blog is sponsored by Magnifi. This material is provided for informational purposes only and should not be construed as individualized investment advice or an offer or solicitation to buy or sell securities tailored to your needs. This information covers investment and market activity, industry or sector trends, or other broad-based economic or market conditions and should not be construed as investment research or advice. Investors are urged to consult with their financial advisors before buying or selling any securities. Although certain information has been obtained from sources believed to be reliable, we do not guarantee its accuracy, completeness or fairness. Past performance is no guarantee of future results. This content may not be reproduced or distributed to any person in whole or in part without the prior written consent of Magnifi. As a technology company, Magnifi provides access to tools and will be compensated for providing such access. Magnifi does not provide broker-dealer or custodial services.
Wind Energy
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While wind energy as a reliable and standard resource may seem far off, the technology is being adopted at record speed. In fact, wind energy is one of the fastest-growing energy sources in the world, according to the U.S. Department of Energy.
That’s especially true for 2020, a banner year for the wind industry, according to a report by American Clean Power (ACP).
In the fourth quarter of 2020 alone, the U.S. wind industry installed 10,593 megawatts of new wind power capacity—the highest quarter on record. In fact, that’s more wind power capacity installed than in any given year except 2012.
Texas led with 2,197 megawatts installed, followed by Wyoming with 895 megawatts, Oklahoma with 866 megawatts, Iowa with 861 megawatts, and Missouri with 786 megawatts.
Who is investing in all of this wind? Developers commissioned 16,913 megawatts, representing an 85% increase over 2019. Project owners commissioned 54 new projects across 20 states in the fourth quarter.
This rapidly accelerating trend is being driven by a combination of increased policy initiatives, more scalable technologies, increased demand from corporate and residential customers alike, and more positive customer perception overall. The Biden Administration’s climate plan, for example, includes the ambitious goal of becoming carbon-neutral by 2035. To achieve that, renewables like wind energy will need to become increasingly less fringe as they move to permanently replace fossil fuel power.
What is wind energy?
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Magnifi is changing the way we shop for investments, with the world’s first semantic search engine for finance that helps users discover, compare and buy investment products such as ETFs, mutual funds and stocks. Open a Magnifi investment account today.
The information and data are as of the November 17, 2020 (publish date) unless otherwise noted and subject to change. This blog is sponsored by Magnifi.
Retirement Income
From pay cuts to reduced employer retirement savings matching, COVID has no doubt impacted retirement for many people planning to retire both in the near and far future. According to a MoneyRates survey conducted in late March 2020, 36.4% of Americans within 20 years of retirement expect the COVID-19 crisis will delay their retirement. That number might not seem so surprising when you consider that 37.4% of workers aged 45 to 64 have lost their jobs or a portion of their income, according to the same survey.
Even before the pandemic, only a quarter of Americans were on track with their retirement savings, inclusive of those in their 50s, according to the Edward Jones study, The Four Pillars of the New Retirement. In part, that is because what you need to retire is not a small number. According to Fidelity Investments, to retire by age 67, you should have 10 times your income saved.
While many employees are anticipating that they will be working longer to secure a sustainable retirement savings as a result of COVID’s economic impacts, others are retiring earlier than they planned in turn making their retirement a lot less comfortable.
Here’s how COVID and the down economy are impacting retirement.
Retirement 2021: Many people Are Retiring Early
Lots of older Americans are suddenly finding themselves out of work.
Some are actively hoping to rejoin the workforce. Between September and October 2020, the number of job seekers aged 55 and older who were out of work for 27 weeks or more and still looking jumped from 14% to 26.4%, according to the Bureau of Labor Statistics. Months later in December 2020, the unemployment rate held steady at 6.7%— meaning that older job seekers are facing increased levels of competition that is not likely to go away anytime soon.
Unfortunately, many older job seekers will never make it back to the workforce, at least not in full-time roles comparable to their previous positions. Approximately 4 million workers age 55 to 70 are expected to be forced into early retirement due to the COVID-19 pandemic, according to a report from the Retirement Equity Lab at The New School.
For those who have the option of staying in their current position, health and safety are a very real concern. The immune system becomes weaker as we age making older populations more vulnerable to COVID-19. The fact is that 95% of COVID-19 deaths in the US have occurred among people aged 50 or older. Workers between the ages of 55 and 65 simply face a greater risk than their younger counterparts, particularly if they have underlying health conditions, such as obesity, diabetes or high blood pressure. This means that older members of the workforce— those closer to retirement— face a challenging dilemma if they cannot work remotely: is the risk of getting sick worth returning to work at all?
For those retiring early, paying for health care costs before Medicare eligibility at age 65 can be extremely expensive. For those lucky enough to get a severance package, a continuation of health benefits for a determined length of time can be instrumental in making a more comfortable retirement possible.
Also, early retirees by choice or default should consider that claiming Social Security benefits earlier than planned can mean a smaller monthly benefit. A person’s Social Security benefit automatically increases 8% every year beginning at age 62 (for people born after 1943) until age 70.
For those retiring early as a result of the pandemic-stricken economy, they are generally doing so with less savings and fewer benefits available to them. This means that retirement itself means managing tighter finances for the long-haul.
Retirement 2021: Others are working longer
Not everyone is fast-tracking retirement. Even before the pandemic, one in four working households were not contributing to retirement savings. The pandemic has resulted in an additional 18% of households contributing less toward retirement, most to help buffer some loss of income, according to a survey by Bankrate.
According to The Four Pillars of a New Retirement report, nearly a third of Americans (29%) planning to retire have pushed out their plans for financial reasons related to the COVID-19 pandemic.
In part, this is because many older Americans are not just supporting themselves. One in four of all parents with adult children, or 24 million Americans, have had to provide their children with financial support due to the COVID-19 pandemic. People need more cash fast in the down economy, and they are looking to their retirement funds to get it.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act, passed in March 2020, made it easier than ever for people to tap into their retirement savings. Through the CARES Act, “early withdrawals taken in 2020 due to COVID-19 hardships will not be subject to the 10% additional tax under Sec. 72(t) or the 25% additional tax on SIMPLE IRAs under Sec. 72(t)(6), if certain conditions are met.”
People are taking advantage of this access to retirement funds. According to a survey by Bankrate, upwards of 27% of those with retirement accounts have either already tapped into them or plan to do so.
The Power of Income
Experts warn against taking early withdrawals, if possible. Thinking long-term and staying the course by keeping up retirement contributions and taking full advantage of an employer match, for example, will pay off in the long run. To prevent having to dip into retirement savings, experts recommend prioritizing an emergency fund.
It’s also worth remembering that with the markets as volatile as they are, by taking an early withdrawal, you risk selling your investments at a lower value than they might be worth in the future. Even if the markets are doing well, by taking out retirement money early, you lose out on the potential future gains of that retirement plan money.
This is why an income-focused approach can be so powerful in the lead-in to and early years of retirement. With income coming in every month or quarter, your portfolio is not so much left to the whims of the market and can continue to build and live off of your nest egg for years to come.
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The information and data are as of the April 14, 2021 (publish date) unless otherwise noted and subject to change. This blog is sponsored by Magnifi.
Geothermal Energy
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Geothermal energy is nothing new. It goes back as far as the first century A.D. in Pompei, where baths were heated by hot springs.
And it’s already powering major cities in the modern world. For example, Iceland’s capital city, Reykjavik, which has long been considered one of the cleanest cities in the world, heats 95 percent of its buildings using geothermal energy.
In Paris, the Dogger Aquifer has supplied geothermal heat and hot water since 1970. It currently supplies 210,000 housing units. In mid-2021, drilling is set to begin in Paris on another geothermal well.
In Munich, officials of the utility company Stadtwerke München (SWM) want to expand the geothermal district to 560,000 households.
In the US, Boise, Idaho is home to the largest geothermal heating system in the country. The system heats 6 million square feet for only about $1,000 a month, which pays for the electricity to pump it. Boise sits by a unique resource— a geological fault where 177-degree Fahrenheit water rises to the surface in the foothills just outside of town.
But geothermal energy doesn’t require a warm, babbling brook nearby. In fact, “the US already produces 3.7 gigawatts (GW) of geothermal electricity, or enough to power more than 1 million homes,” according to a report by Yale Environment 360.
These days, investors, government sectors, and oil and gas companies are getting on board the geothermal energy potential. Here’s what investors should know.
What Is Geothermal Energy?
Heat exists in the earth’s mantle around the world, no matter where you are standing.
That’s because geothermal heat comes from the Earth’s core, where temperatures may reach 4,000-7,000°C. For perspective, the surface of the sun is approximately 5600°C (but at its core can reach more than 15,000,000°C).
While geothermal heat can naturally rise to the earth’s surface water through fissures, cracks and permeable rock, those presentations aren’t necessary to access the energy. Even in locations that don’t have readily available resources that reach the surface, the heat from the earth’s core can still be made accessible.
This is because deep drilling techniques allow hot water that sits two to three miles below the surface to be pumped and used to heat or to generate electricity.
The fact that geothermal heat is everywhere under our feet means that there is an “enormous untapped potential” for geothermal energy consumption.
Why Invest in Geothermal Energy?
While wind and solar energy might come to mind more quickly when talking about renewables, geothermal could far outpower these. In part that’s because unlike the sun or the wind, geothermal energy is “always on,” per the US Department of Energy.
Chief Marketing Officer for Baseload Capital, an investment firm in Sweden focusing on geothermal projects, referred to the geothermal industry as “the sleeping giant.” This is because geothermal energy can provide significant energy resources at all hours of the day, combating climate change in a real way.
According to the US Department of Energy report, GeoVision: Harnessing the Heat Beneath Our Feet, geothermal technology has enormous potential in the US. Instead of electric-powered air conditioners and natural gas-powered heaters, for example, geothermal powered heating and cooling solutions can power American homes.
In order for geothermal energy to reach its potential in the US, three things have to happen according to the US Department of Energy report: (1) increased access to geothermal resources, (2) reduced costs and improved economics for geothermal projects, and (3) improved education and outreach about geothermal energy. According to the report, by overcoming these technical and financial barriers, electricity generation through geothermal methods could increase 26-fold by 2050, providing 8.5 percent of the United States’ electricity, as well as direct heat.
The US isn’t the only country looking underground to solve energy problems. In Europe, the output of geothermal energy supply could increase eight-fold by 2050, according to the International Renewable Energy Agency (IRENA).
The good news is that when it comes to drilling, oil and gas companies know a lot. They, too, are looking at geothermal energy these days.
In 2021, oil and gas companies may finally start investing in geothermal. This is true as geothermal economics begin to improve, and after oil and gas underperformed from 2014 - 2020. Both BP and Chevron, for example, backed a $40 million funding round for Eavor, a Canadian geothermal energy firm, in early 2021. Eavor’s technology offers a closed-loop system that can potentially scale geothermal production, producing “enough heat for the equivalent of 16,000 homes with a single installation.”
Governments are also backing research around the world.
In Utah, the Frontier Observatory for Research in Geothermal Energy (FORGE), funded by the US Department of Energy, is an underground research laboratory. It just completed drilling its first well at a 65° angle from vertical reaching true vertical depth of 8,559 feet. The laboratory offers a test environment for future Enhanced Geothermal Systems (EGS) projects around the world that enable access to geothermal in locations that don’t have babbling warm brooks nearby, but rather require complicated drilling to access geothermal energy.
Breakthrough Energy Ventures, a fund backed by Bill Gates and other notable billionaires recently invested an additional $30 million in the startup Dandelion Energy, which heats homes with geothermal.
When it comes to geothermal energy, it is less a matter of if and more a matter of when technology is able to fully harness the energy beneath the surface of the Earth. With the number of potential disruptive and scalable technologies, eager large-scale investors, increasing public knowledge, and climate change imperative, geothermal will be getting more attention in the decades to come.
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Magnifi is changing the way we shop for investments, with the world’s first semantic search engine for finance that helps users discover, compare and buy investment products such as ETFs, mutual funds and stocks. Open a Magnifi investment account today.
The information and data are as of the April 6, 2021 (publish date) unless otherwise noted and subject to change. This blog is sponsored by Magnifi. This material is provided for informational purposes only and should not be construed as individualized investment advice or an offer or solicitation to buy or sell securities tailored to your needs. This information covers investment and market activity, industry or sector trends, or other broad-based economic or market conditions and should not be construed as investment research or advice. Investors are urged to consult with their financial advisors before buying or selling any securities. Although certain information has been obtained from sources believed to be reliable, we do not guarantee its accuracy, completeness or fairness. Past performance is no guarantee of future results. This content may not be reproduced or distributed to any person in whole or in part without the prior written consent of Magnifi. As a technology company, Magnifi provides access to tools and will be compensated for providing such access. Magnifi does not provide broker-dealer or custodial services.
Cryptocurrency
More and more, cryptocurrencies are becoming a medium of exchange. But they’re not your average dollar.
Cryptocurrency—or digital currencies that are based on blockchain technology—is a thing of the present, and the future. With Bitcoin prices soaring and more cryptocurrencies coming online, this new, digital financial instrument is drumming up more interest than ever.
Investors these days are wondering if it’s too late to invest in Bitcoin. And, if so, what are the other options available to investors who want to buy cryptocurrency?
Big banks are also trying to figure out how to modernize and innovate for the purposes of meeting customer interest in cryptocurrency. This has some banks creating their own currency exchange networks. Silvergate Capital’s Silvergate Bank, for example, offers the Silvergate Exchange Network (SEN), a digital payments network that facilitates 24/7 transfers of cryptocurrency.
Others, like J.P. Morgan Chase, are launching their own digital coins. Still others are providing services to manage the new currency. In early 2021, the Bank of New York Mellon, the nation’s oldest bank, announced that it would begin financing bitcoin and other digital currencies. It is the first traditional bank to offer services for digital assets.
Since they were first introduced, cryptocurrencies have developed into an alternative high-risk asset for affluent investors. As a financial innovation, they appeal to customers because they allow for real-time value movement, improving transaction speed and removing limitations on business hours.
Here’s what investors should know about the Bitcoin Cash and how is it different from Bitcoin.
What Is Cryptocurrency?
In order to describe Bitcoin Cash, it’s important to understand its predecessor, Bitcoin.
Unlike paper bills (fiat), cryptocurrency is strictly digital. Instead of a centralized bank monitoring currency purchases and exchanges, cryptocurrency “uses encryption techniques to control the creation of monetary units and to verify the transfer of funds.” Each transaction is recorded on a global public ledger recorded via blockchain technology.
Bitcoin was first described by an anonymous person(s) who went by the name Satoshi Nakamoto in 2008. Bitcoin was later released publicly in 2009. Although blockchain was first thought of as far back as 1991, it was really only first implemented as a currency model in 2009, the birth of Bitcoin.
Bitcoin is fundamentally different from other commodities. These days, it is typically used as an investment and exchange platform. (While it can be used to complete certain types of online purchases, these tend to be more complicated than paying with dollars.)
Bitcoin also allows for anonymity, as no central entity verifies buyers and sellers. Rather, the blockchain allows the ledger to be peer-to-peer, with no one entity maintaining ownership or control over the ledger.
A signature feature of Bitcoin transactions is that they have low fees and lots of flexibility. Think no more waiting two business days for a transaction to clear.
And, in the case of Bitcoin, there is a fixed amount of 21 million available. That nulls the issue of inflation that other currencies are subject to.
But, that fixed number, an increase in demand, and a flux in transaction fees is in part is what led to Bitcoin Cash…
In the years following Bitcoin’s launch, the cryptocurrency evolved from a fringe boutiquey interest to a more mainstream purchase and investment. As Bitcoin began to capture more and more interest from the general public, the blockchain technology that was pivotal to the use of the currency faced major challenges, resulting in increasing fees and less reliable transactions.
Out of that problem, Bitcoin Cash was born. Created on August 1, 2017, Bitcoin Cash was designed to help solve these scalability issues. In the world of blockchain it is considered a “hard fork,” or basically a new coin.
There are only 21 million units of Bitcoin Cash available in total, similar to Bitcoin. A major difference, however, is that Bitcoin Cash has larger blocks (between 8 MB and 32 MB), which allows space for more transactions per block. These larger blocks also make the system faster and more reliable.
Why Invest in Cryptocurrency?
The cryptocurrency market has yet to mature, but when it does, you might be happy that you decided to stuff your digital wallet with Bitcoin Cash in the early days.
Even now, to do so, you’ll have to dish out big bucks. As of March 16, 2021, 1 unit of Bitcoin Cash had the cash equivalency of about $523.
But, that’s much more affordable than the original Bitcoin. As of late February 2021, one Bitcoin was selling for $47,032.52. As of January 30, 2021, there were only 2,385,193 bitcoins remaining available for mining.
Bitcoin Cash, on the other hand, entered the market at $900 and has since reached an all-time high of $3,785.82. While the price of Bitcoin Cash in late February 2021 was about $515.93, predictions put Bitcoin Cash at higher than that, reaching $738.03 by December 2021.
Bitcoin Cash is faster and cheaper, at about $0.20 per transaction. (Bitcoin transactions cost about $25 per transaction, but fees have reached as high as $60.)
While Bitcoin Cash isn’t valued nearly as high as Bitcoin, Bitcoin Cash is still one of the top ten cryptocurrencies in the world.
The cryptocurrency world is still relatively new, but in many ways, Bitcoin has set the standard for these currencies. It is anticipated that in the long-term, Bitcoin Cash has the ability to take on some of Bitcoin’s market share, eventually becoming the most dominant cryptocurrency.
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The information and data are as of the March 30, 2021 (publish date) unless otherwise noted and subject to change. This blog is sponsored by Magnifi.
Millennials
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There are 75.4 million Millennials in the US, making them the largest living generation and the largest generation in the labor force. But who are they?
The strict definition of a Millennial is someone who was born between 1981 and 1996. They were raised with technology (using computers as early as grade school) so it’s no surprise that they are tech-savvy; they are efficient, valuing work-life balance and time with their families; and they are achievement oriented and they want to make a difference beyond their workday.
When it comes to buying, they care about more than the price— they care about a company’s core values. That’s important because Millennials are responsible for $1.4 trillion in annual buying power. Just like Millennials have different professional priorities and personal goals than their parents did, they spend their money differently.
What Is the Millennial market?
Millennials have a reputation for being broke. That’s kind of true.
American Millennials are financially behind compared to Generation X and Baby Boomer generations for a few reasons. These include student debt, a higher cost of living, and the financial crisis that limited well-paying jobs upon graduation.
Nonetheless, Millennials are educated.
39 percent of Millennials have a bachelor’s degree or higher. But, while Millennials tend to have more education than their grandparents, they have loans to show for it. In 2019, student-loan debt reached $1.5 trillion, with the graduating class of 2018 owing an average of $29,800.
While that kind of education debt is a burden, no doubt, an education makes a difference in Millennial earning power.
According to the Pew Research Center, in 2018, Millennials who had earned a bachelor’s degree earned $56,000 on average. That is a stark contrast to Millennials with only some college education who reported earning nearly $20,000 less on average. For many, that’s the difference of being able to afford a house, a family, and other milestone expenses.
Millennials aren’t just strapped by debt. The incomes offered by available jobs haven’t kept up with the cost of living. While there has been a 67 percent growth in income, according to Student Loan Hero, it isn’t keeping pace with the cost of living.
Nonetheless, Millennials are spending, and spending differently. Just like they want more out of their work than hours logged, they want more out of their spending than a good deal.
Why Invest in the Millennial Market?
Millennials are more interested than ever about what they are consuming. From food, to cosmetics, to cleaning supplies— a Millennial might naturally ask, what’s in it? Approximately 41 percent of Americans intentionally seek out products with the clean label designation. Nearly half of these 41 percent are under the age of 35.
This is particularly true for food products. Millennials tend to have an interest in eating fresher and more naturally. Case in point: Millennials are the largest group of organic shoppers. This trend is particularly true for Millennials who have children.
If you consider that farm-to-table products and convenience meet harmoniously in many meal kit delivery boxes, you then won’t be surprised to learn that Millennials are also more likely than any other demographic to order meal kit services.
Millennials also like to eat out, less at places like McDonalds and more for new and unique experiences. According to the 2018 US Consumer Expenditure Survey from the US Department of Labor, Millennials spent 47 percent of their food budget on food away from home, more than all other groups. Even before the pandemic, 67 percent of millennials were more likely to choose a restaurant that delivered.
When it comes to food and drink, higher quality overrides price. (One study even finds that Millennials spend more on craft beer than their cell phone and utility bills!)
In the same way Millennials want to know more about what’s in their food, they want to know more about, well…everything they do, and why. Often, they do this on their phones. 96 percent of Americans under age 29 own a smartphone, according to the Pew Research Center. In the past year, 64 percent of Millennials paid to download at least one app, and approximately 20 percent of those sought to purchase an app monthly. They are willing to share their information (in safe and secure digital platforms) in order to use innovative and convenient services like Uber, Lyft, and Airbnb; meal delivery platforms like GrubHub; subscription services and more.
They also do a lot of online shopping from their phones. According to one study, 35 percent of Millennials reported that they can’t live without Amazon, only to be followed by Gmail (30 percent) and Facebook (29 percent).
Millennials are leading the adoption of wearable technology that tracks trends and gives feedback. (Millennials love feedback!) In other words, they are trying to do things a bit smarter than they could without the data tech offers.
Beyond eating better and self-improvement, Millennials have taken their videogame habits into adulthood. Millennials grew up with videogames, and so it should be no surprise that two in three Millennials in the US play video games every month.
They also like watching other people play video games— driving the eSports industry. According to the Entertainment Software Association, the average gamer is 34 years old — or, a Millennial. In 2020, the global video gaming industry saw $180 billion in spending, topping sports and movies globally.
When it comes to work, even before the pandemic, Millennials liked working from home. They like flexibility and efficiency, and they are tech-savvy enough to avoid the need for a printer and opt for document sharing on the cloud, instead.
Millennials might be at a disadvantage financially, but they shouldn’t be discounted. They are willing to spend more on better quality, rather than seek out the best deal. As they do things in more data-driven ways, they will lead the adoption of the next wave of technologies.
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The information and data are as of the March 23, 2021 (publish date) unless otherwise noted and subject to change. This blog is sponsored by Magnifi. This material is provided for informational purposes only and should not be construed as individualized investment advice or an offer or solicitation to buy or sell securities tailored to your needs. This information covers investment and market activity, industry or sector trends, or other broad-based economic or market conditions and should not be construed as investment research or advice. Investors are urged to consult with their financial advisors before buying or selling any securities. Although certain information has been obtained from sources believed to be reliable, we do not guarantee its accuracy, completeness or fairness. Past performance is no guarantee of future results. This content may not be reproduced or distributed to any person in whole or in part without the prior written consent of Magnifi. As a technology company, Magnifi provides access to tools and will be compensated for providing such access. Magnifi does not provide broker-dealer or custodial services.
Smartphones
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Smartphones have changed the fabric of our lives. From instant news updates, to social media, to checking our phones countless times each day out of habit— they have changed how we think, how we interact, and how we meet our needs (from getting groceries to finding directions to meeting our future mate).
In 2020, the global smartphone market was valued at $714.96 billion. It is expected to surpass $1 trillion by 2026. While it is expected that the market will plateau because of sheer penetration, mobile technology isn’t done yet. From a wide rollout of 5G to foldable phones, the world of smartphones has new opportunities on the horizon.
Interestingly, the pandemic of 2020 increased the demand on cellular networks. According to Ericsson, the number of mobile 5G subscriptions in North America will reach 325 million. That’s compared to 3 million in 2019.
In other words, it accelerated the need for digital connectedness, making smartphones more vital than ever.
What Is a Smartphone?
A smartphone is “a mobile phone that performs many of the functions of a computer, typically having a touchscreen interface, internet access, and an operating system capable of running downloaded applications,” according to the Oxford dictionary.
While the iPhone launched in 2007, the iPhone didn’t change the world on its own. The first iPhones cost between $399 and $599, which at the time was a large premium.
Androids played an important role in bringing the price of smartphones down. In 2008, after the launch of the iPhone, HTC’s T-Mobile G1 launched for a price tag of $179. This price drop, in conjunction with other factors (including a data price drop, better apps, and better camera technology), helped to make smartphones more accessible and ubiquitous globally.
Today, 91 percent of US households own smartphones and use them a lot. Approximately half of web traffic worldwide is mobile, in fact. In the third quarter of 2020, alone, mobile devices (not including tablets) generated 50.81 percent of global website traffic.
Worldwide, there are more than three billion smartphone users. That number is predicted to grow by several hundred million in the next few years. With more than 100 million users each, China, India, and the US are home to the highest number of smartphone users.
Why Invest in Smartphones?
While it might seem that the smartphone market is tapped, lots of growth potential exists.
First, investing in smartphones isn’t limited to investing in Apple shares. Today, the leading smartphone companies include Samsung, Apple, and Huawei Technologies. These three technology companies sell about half of all smartphones worldwide. While all three shipped at least 200 million smartphones in 2018, Samsung outsold the other two competitors, selling more than 290 million smartphones. Other smartphone makers include Google, LG, Motorola, Vivo Communication and Xiaomi.
Networks are also getting better by going 5G, and that takes equipment.
5G chip makers include Qorvo, whose “revenue for the third quarter of fiscal 2021 increased 26 percent year over year to nearly $1.1 billion.” Its shares nearly doubled, from $1.86 per share a year ago to $3.08 per share at the end of the year. The company expects that 2021 might be an even better year, estimating that 500 million 5G smartphones could be sold in 2021, compared to just 250 million units in 2020.
Chips are required in almost anything powered by software (including smartphones, cars, laptops, PCs, video games and data centers), and they are seeing more demand than ever. Alternatively, instead of choosing a particular chip company, semiconductor ETFs are also available.
Beyond new networks, cellphones themselves aren’t done innovating just yet.
These days, foldable phones are on the horizon. Foldable phones can adjust their size to meet the user’s need—making it larger to function more like a tablet, or smaller to function more like a mobile phone.
While foldables are on the market (Royole introduced the first foldable phone, the FlexPai, in October 2018, and Samsung has since released three, and Motorola recently released one), they haven’t arrived or been adopted in full force.
And, what would our phones be without the apps we rely on?
Google’s Play Store is home to nearly 3 million apps and Apple’s App Store is home to nearly 2 million apps. Consumer spending on app stores on these two platforms and third-party app stores hit $143 billion in 2020. The dating app Tinder alone grossed $33.86 million and the gaming app Monster Strike grossed $28.92 million. That’s a lot of revenue generated by tiny little display squares.
Beyond gaming and dating, finance and communication apps (for platforms like Zoom) are growing too. Investors aren’t missing the boat. Between 2016 and 2020, global funding to mobile technology companies more than doubled compared to the previous five years.
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The information and data are as of the March 16 ,2021 (publish date) unless otherwise noted and subject to change. This blog is sponsored by Magnifi.
Waste Management
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While investing in trash might not seem appealing, the predictability of the returns the industry generates should be— especially in a post-pandemic market. Consider that the global waste management market size was $2 trillion in 2019. It is expected to grow to $2.3 trillion by 2027, according to Allied Market Research.
Waste isn’t going anywhere. In fact, it’s projected to increase. Worldwide, municipal solid waste generates approximately 1.3 billion tons per year, which is expected to increase to approximately 2.2 billion tons per year by 2025.
Why So Much Trash?
For one thing, trash is fueled by consumerism. While the US represents just 4 percent of the world’s population, it produces 12 percent of global municipal solid waste (MSW), according to a new report by the research firm Verisk Maplecroft. In fact, the average American is responsible for 1,704 pounds of garbage per year, which is approximately three times the global average.
This is the case for other high-income countries as well. According to the World Bank, high-income countries generate about 34 percent, or 683 million tons, of waste globally, even though they only account for 16 percent of the world’s population.
The projected waste increase is also linked to the increase in the global population and the growth of urbanized populations.
Waste management is vital for the health and sustainability of cities. But, filling landfills isn’t what it used to be. Waste management innovation can actually play a major role in promoting sustainability and reducing the impact of climate change, which presents major opportunities for the waste management industry.
What Is Waste Management?
The waste sector consists of MSW landfills, industrial waste landfills, industrial wastewater treatment systems, and facilities that operate combustors or incinerators for the disposal of nonhazardous solid waste, according to the United States Environmental Protection Agency.
Waste management is “the transportation and disposable garbage, sewage, and other waste products. It involves treating solid waste and disposing unwanted products and substances in a safe and efficient manner,” according to Allied Market Research. The five major categories of MSW— or the waste that gets picked up on the curb— includes paper, food waste, plastic, metal, and glass.
There is some seasonality related to waste management. In the winter, for example, construction slows, and so does construction related waste. After storms, waste removal needs tend to increase.
Why Invest in Waste Management?
First, consider that waste management isn’t limited to trash pickup at your home. Commercial and residential entities have much higher waste needs. In fact, residential waste management accounts for under a third of the waste business.
But, residential pickup is steady business. Residential accounts are typically negotiated in 3-10 year contracts with municipal governments or homeowners associations. Sometimes, waste management companies have direct subscription services to individual customers. When contracts are renewed, it’s not typical for customers to switch providers, although it’s not unheard of.
Interestingly, the pandemic caused industrial waste to decrease because of various lockdown or shutdown measures. But, because everyone was home, residential waste increased exponentially. The pandemic also caused the demand for recyclables to drop, meaning that more trash was sent to landfills. The pandemic also greatly increased the need for the proper disposal of medical waste, including used masks, gloves, suits, syringes and other medical equipment. It is anticipated that as industries resume full-capacity production, so too will industrial waste management needs resume a greater capacity.
Waste management companies typically own the landfill sites, acting as a landlord for other companies that pay for a portion of landfill capacity.
Take the company Waste Management, for instance, which has 20 million customers in 48 states and Canada as well as a team of 44,900 employees. It may not be the most glamorous company, but its business model is easy to understand. Waste Management owns nearly 400 collection operations, 249 active solid waste landfills, 297 transfer stations, and 104 recycling centers, making it the largest non-hazardous waste operator.
These factors, and the fact that new landfills are hard to establish, make it hard for smaller competitors to gain market share. For investors, that means that major waste management companies can offer stable and reliable dividend stocks.
In general, waste management as an industry provides an essential service. More than 80 percent of its revenue is generated by services provided, which means that its revenues tend to remain stable even if the economy dips. In that capacity, the industry is considered recession-proof in some ways. Even if you lose your job, your trash will still need to be picked up.
While the business of waste management might seem stale, they have the ongoing opportunity for increased margins by increasing efficiency. (Think picking up dumpsters when full instead of half empty.)
In addition to increasing waste, the waste management industry has opportunities for implementing renewable technologies. Waste is linked to greenhouse gas emissions. According to the EPA, landfill gas (LFG) is a natural byproduct of the decomposition of organic material in landfills. It is composed of roughly 50 percent methane, 50 percent carbon dioxide, and a small amount of non-methane organic compounds.
The good news is that waste management companies can do something about it. Waste Management, for example, captures landfill gas and uses it to power residences, businesses and even trucks. Waste is growing, with it, so too will the need for waste management and innovation.
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Magnifi is changing the way we shop for investments, with the world’s first semantic search engine for finance that helps users discover, compare and buy investment products such as ETFs, mutual funds and stocks. Open a Magnifi investment account today.
The information and data are as of the March 8, 2021 (publish date) unless otherwise noted and subject to change. This blog is sponsored by Magnifi.