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Maybe We Should Call These "Elaine Chao Stocks"

My colleagues have been busy making lists of "Donald Trump Stocks."

I've done some of that myself.

But maybe we should rethink that a little.

Trump has said he plans to act more like a chairman of the board, while Vice President-elect Mike Pence and the cabinet handle the nitty-gritty of government.

So maybe we should be talking about "Elaine Chao Stocks"…

After all, Trump's pick for secretary of transportation will head up much of the president-elect's $1 trillion infrastructure improvement plan.

stocksBut more importantly to our interests here, she'll be in charge of regulating self-driving vehicle technology.

If Chao's history as deputy secretary of transportation under George H.W. Bush and secretary of labor under George W. Bush repeats itself, that's good news, because she's known for a light regulatory hand.

To us, that means public companies in the self-driving space are likely to see a big boost in share price over the next four years.

Especially the one we're looking at today.

You can already find its "pre"-autonomous driving technology in many of the most prestigious nameplates.

Its technology is the force behind two of the most "public" driverless car tests over the past couple of years.

And its shares are primed to soar as much as 40% in the next year alone.

Let's take a closer look at this "Elaine Chao Stock"…

Changing "How We (Don't) Work"

On the other hand, driverless vehicle technology goes against one of Trump's big promises – to create millions of more jobs.

Like automation has already done in manufacturing and elsewhere, autonomous vehicles will eliminate millions of U.S. jobs. Nearly 5 million Americans make their living driving taxis and ride-sharing vehicles (e.g., Uber), buses, delivery vans, and long-haul trucks and e-hailing vehicles.

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That's almost 3% of the workforce, and they mostly belong to the same "cohort" as all those factory and fossil-fuel workers Trump is seeking to reemploy – men and women without college degrees.

In other words, self-driving technology is changing "How We Work" in the Singularity Era – by being one of the main reasons many may not be working in this brand-new era.

That presents a big problem politically and economically.

However, it's hard to believe proud capitalists like Trump and Chao would stand in the way of innovations that will increase the profits of tech shareholders like you. In fact, I fully expect the Chao team at the U.S. Department of Transportation to make the release of self-driving vehicles easier, if not a priority.

Now, I'm as concerned about the loss of those jobs as much as you are – it keeps me up at night, in fact. And, of course, I have opinions about what politicians and other leaders might or might not do to either stem the loss of these jobs – or create new ones.

However, my job here isn't to share my opinions.

It's simply to work with you to find the best tech profit opportunities out there. Today I'm doing so by following Rule No. 3 of my Tech Wealth Secrets: Ride the Unstoppable Trends. Driverless cars are certainly one of those.

I'm talking about the sort of tech profit opportunity with which you can turn $17,000 – the median savings of families close to retirement – into the sort of "nest egg" most people can only dream of.

And driverless technology and the company behind much of it – the one I'm sharing with you today – are just those sorts of opportunities.

On the Road

If you still find the idea of self-driving cars hard to believe, consider this…

  • Uber began testing driverless cars in Pittsburghearlier this year, and the Obama administration has endorsed the push to develop these vehicles.
  • Alphabet Inc.(Nasdaq: GOOGL) has fielded a fleet of autonomous cars, under its Chauffeur division, that have logged a combined 2 million miles in the last four years. (Although the execs there are in the process of refocusing that division – with an announcement coming as soon as today.)
  • Ford Motor Co. (NYSE: F)and BMW AG are working to produce driverless cars by 2021.
  • General Motors Co. (NYSE:GM) has invested $500 million in ride-sharing startup Lyft, and the two are working on autonomous vehicles together.
  • And in April 2015, an Audi SQ5drove 3,400 miles across the country almost entirely "hands free."

On that journey from San Francisco to New York, the car had to guide itself through big-city rush hours, road construction, confusing street signs, and diverse weather.

A human driver had to step in just twice on the trip. A few quick after-trip software fixes have been made, so the next cross-country trek could be truly 100% hands-free.

In other words, the car of tomorrow is here today, and we are at the dawn of a new technology that will shake up the $9 trillion global motor vehicle market and change the way the 80 million cars sold each year operate.

IHS Automotive forecasts annual sales of vehicles with self-driving features and true autonomous vehicles hitting 21 million units within 20 years.

This extremely safe technology should make a huge dent in auto accidents, which kill 32,000 people every year just in the United States.

And Boston Consulting Group predicts that autonomous cars will create a market for the technology that goes from about $0 today… to $42 billion by 2025… to $77 billion by 2035.

Going Behind the Scenes

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About the Author

Michael A. Robinson is one of the top financial analysts working today. His book "Overdrawn: The Bailout of American Savings" was a prescient look at the anatomy of the nation's S&L crisis, long before the word "bailout" became part of our daily lexicon. He's a Pulitzer Prize-nominated writer and reporter, lauded by the Columbia Journalism Review for his aggressive style. His 30-year track record as a leading tech analyst has garnered him rave reviews, too. Today he is the editor of the monthly tech investing newsletter Nova-X Report as well as Radical Technology Profits, where he covers truly radical technologies – ones that have the power to sweep across the globe and change the very fabric of our lives – and profit opportunities they give rise to. He also explores "what's next" in the tech investing world at Strategic Tech Investor.

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  1. archie mcelmury | January 2, 2017

    Ready to invest in medical marajuana industry

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