- Why does Florida have cases of COVID-19?
- How COVID-19 will change everything we think we know about manufacturing
- Microsoft just acquired my No. 1 5G watchlist company
Dear Reader,
Welcome to our weekly mailbag edition of The Bleeding Edge. All week, you submitted your questions about the biggest trends in technology. Today, I’ll do my best to answer them.
If you have a question you’d like answered next week, be sure you submit it right here.
Before I get to the questions, I wanted to share some new data points that have caught my eye.
Days ago, CBS News was caught red-handed trying to manipulate public perception of the pandemic. It was “reporting” on the COVID-19 outbreak in New York City and aired video of a supposedly overcrowded NYC hospital.
But there was one major problem: CBS News was using footage from a hospital in Italy, not New York.
This kind of nonsense is completely unethical, and it exacerbates the problem. And it got me thinking about what is really happening across the U.S. and, of course, in New York.
I called on people in my network who are working in the health care industry from California to Washington, D.C. What I heard may surprise you.
Some hospitals now are running at 50% capacity or less. Almost all elective surgeries have been postponed. The workload has dropped so dramatically, they are sending workers home early each day.
The New York City area is an exception. After all, 38% of all U.S. confirmed cases are in the NYC area. And as of this writing, New York has just reported its largest one-day virus death toll. This level of human suffering is heartbreaking to see. And I don’t mean to diminish the pain the world is going through by what I say next.
I’ve gained some insights regarding the NYC health care system.
Last night, I was on a call with a pandemic expert from Johns Hopkins. He commented that NYC is unique due to its very high population density compared to the country.
He also said that some NYC area hospitals went offline in previous years with the result that “NYC hospitals are almost always stressed.”
He explained that “NYC hospitals almost broke during the 2017–2018 flu season.” For reference, about 61,000 people died during that flu season.
But here was his most interesting comment: The “rate of hospitalization in NYC is decreasing every day.” It is decreasing, not increasing. In many ways, this makes sense.
After all, COVID-19 was spreading exponentially from January through early March pretty much unfettered. Based on the data out of Iceland, more than 99% of those who have COVID-19 are asymptomatic or have mild or moderate symptoms requiring no care.
And Dr. David Price from the Weill Cornell Medical Center in New York City stated that of those who come to a hospital thinking they have COVID-19, only about 1–3% need care. The majority of those go on ventilators and recover in 7–10 days.
This is such a different reality from what I am seeing from the mainstream media.
I’ll tell you what I make sure to do every day since my travel has been dramatically curtailed… I make an effort to get sunshine, fresh air, exercise, and good rest. These are all critical things that help boost our immune systems.
Here is me with a good “friend,” a 20 kg (44 lbs) kettlebell.
Yesterday involved 200 kettlebell swings and 100 push-ups. Not bad after just getting out of my sling in January after my shoulder surgery mid-December.
I’m beginning to see the light at the end of the tunnel for COVID-19.
Best wishes to all.
Now let’s turn to our insights…
How COVID-19 made its way to the Sunshine State…
Let’s start with a good question on the spread of COVID-19…
Hi, Mr. Brown, I became a Legacy Member after the San Diego Summit. I was there strictly for crypto and Teeka Tiwari. But WOW! Was I ever glad I went and was introduced to you and the entire Legacy team.
I have two questions in regard to your COVID-19 information. I am glad to hear about warmer weather and all the benefits associated, but how do you explain the Louisiana and Florida numbers? Was the temperature still too low, or are they getting it from people leaving places like New York and contamination at Mardi Gras?
We live in East Central Ohio, and my wife and I are 51 with four children 15–21 years old. She’s a nurse and is on the front line. Have you heard of any prophylactic measures that she or anyone in our family should start? We are not near any big hot spots, but there are some cases where she works, and she will be taking direct care of them beginning this week.
I would also want to extend a heartfelt thanks on behalf of me and my family for all the work you and your staff do. I know people like you and Teeka and the rest of Legacy could just pack up and go home at any time and live a hassle-free life. I can’t express enough gratitude to you for giving us the ability to invest in life-changing opportunities. I hope someday you’ll be able to realize how just how many people’s lives you’ve helped.
The Bleeding Edge is the best part of my day/week (besides listening to Glenn Beck, especially when you are his guest!). I make sure my four children read it. Its content is more valuable to them than they realize right now.
– John M.
John, thanks so much for your kind note. It made my day. I’m happy to hear you were able to join us for our conference and that you’re enjoying the research. And I love to hear that you’re enjoying The Bleeding Edge and are passing it on to your children.
Educating our children on bleeding-edge technology is one of the most important things we can do as parents. The technology discussed in these pages will soon be an everyday part of their lives.
As for your questions…
Last month, I shared research from MIT on how warmer temperatures will likely impact the spread of COVID-19.
The data shows that the maximum number of transmissions occurred in regions that had temperatures between 3 degrees and 13 degrees Celsius (37.4–55.4 degrees Fahrenheit).
The research went on to say that warmer, more humid temperatures during the summer months in the northern hemisphere will likely lower the transmissibility of the virus.
The problem for places like Florida and Louisiana is that the spread of the virus likely began in early January, before the world realized precisely what was going on. And while these states do tend to be warmer, their winter months can still be cold enough for the virus to be transmitted easily.
Nightly temperatures in New Orleans in January can fall to 45 degrees Fahrenheit. And even in South Florida, where some of my team members are located, nightly temperatures in January average about 60 degrees Fahrenheit.
And because both locations are popular tourist destinations, it’s a virtual certainty that the virus was introduced into these states and then spread rapidly during the cooler weeks of January.
You wouldn’t believe the number of tourists and “snowbirds” from the New York metro area that come down to South Florida every week.
As for your second question, there are commonsense things we can all start doing now to stay healthy and safe. I recently put together a report outlining some of these steps for my paid-up readers.
John, since you’re a Legacy member, you can access that research immediately by going here. (If you’re not a member of one of my investment services, you can join us and access this research by going here.)
And here is the best news. COVID-19 has already been seen to struggle to spread in climates above 64 degrees Fahreinheit. South Florida temperatures are now in the 80s during the day and the upper 60s in the evening.
We can expect that the number of new cases will fall dramatically now in any area with this kind of weather.
John, I hope you and your family stay healthy and safe. And thanks to your wife and any health care professionals reading this. Your work is vitally important as we get this virus under control.
An AI-powered robot is here…
Next up, a reader wants to know how to add bleeding-edge robotics to a small business…
Jeff, my friend has a meat processing plant. He has so many repetitive action jobs that he can’t find people to fill. You profiled a company that developed an AI robotic “arm” for small- to medium-sized businesses. The company is a SaaS company.
I’d love to know the name of that company. My friend employs 60 people. This technology could help save his company that was hit hard by coronavirus issues.
Thanks so much, Jeff. I’m a paid subscriber to all three of your services. I feel like I finally have an edge to investing. I share a lot of the info with my kids.
– Don D.
Thanks for writing in, Don. I’m so pleased to hear that you are enjoying and profiting from my research. I’m happy to have you on board.
As for your question, I believe the company you are thinking of is Vicarious. This is an early stage company that I profiled a few weeks back.
The company was launched in 2010. It has the backing of some big names like Jeff Bezos, Elon Musk, and Mark Zuckerberg.
The company is known for creating an AI-powered robotic arm. Now, robotic arms are nothing new. But today’s robotic arms are usually limited to repetitive tasks. And they require a lot of manual programming.
Vicarious’ arm is different. It can “learn” to do its job better without any human intervention. And the robot will also be able to adapt to new tasks quickly.
And as you mentioned, Vicarious implemented a unique business model. It’s not software as a service (SaaS), though. Vicarious has a robotics-as-a-service (RaaS) business model.
That means that if your friend decided to utilize a robot from Vicarious, he wouldn’t have to pay the expensive up-front cost of purchasing the robot. He could simply “subscribe” to use the robot on a quarterly or annual basis.
This is a great model that will give smaller businesses the option to apply bleeding-edge robotics in their business. I’m not sure if Vicarious’ solution will be specific to your friend’s business, but it is definitely worth investigating.
And it’s interesting that you ask this question, Don. I have been thinking a lot about the long-term implications of COVID-19 on manufacturing.
As we have seen, centralized manufacturing models can quickly be disrupted by these kinds of black swan events. But a decentralized model utilizing robotics, artificial intelligence, and potentially even 3D printing would be much more resilient.
I believe that this experience with COVID-19 is a catalyst to accelerate the shift from a centralized manufacturing model in China to bringing manufacturing back onshore in developed markets.
The reality is that the labor cost differentials just aren’t that large anymore, and with manufacturing automation technology like what Vicarious is providing, it becomes affordable for developed countries to produce affordable products.
The lessons from COVID-19 won’t be forgotten anytime soon. I believe we are just at the beginning of a renaissance in manufacturing.
Microsoft saw what I saw in this 5G company…
Let’s conclude with an insight on a smart acquisition by Microsoft, but one that I hated to see happen…
Jeff, you probably know that Affirmed Networks will be bought by Microsoft. I don’t know if Affirmed Networks will have an IPO that enables us to buy shares. Can you talk to us and provide direction as to what to do?
– Keith W.
Thanks for writing in, Keith.
For readers who don’t know, Affirmed Networks is a private company that enables something called “network slicing.”
Put simply, network slicing allows operators to provide dedicated portions of their networks to specific use cases. That might mean dedicated network bandwidth allocated to autonomous cars, a smart energy grid, or the Internet of Things.
In the 5G era, Affirmed Network’s technology would allow wireless carriers to deliver hundreds – if not thousands – of dedicated bandwidth services to high-value customers.
This technology is incredibly valuable. And that’s why Affirmed Networks was my No. 1 5G watchlist company for 2020. I fully expected the company to go public in 2020. It would have been an incredible investment target.
Unfortunately, Microsoft beat us to the punch. Last week, the company agreed to acquire Affirmed Networks for an undisclosed sum. That means an IPO is off the table.
This was a major disappointment for me. A company as good as Affirmed would have made an excellent 5G investment for us.
If any readers would like more information on Affirmed Networks, you can access this complimentary research on the company. Just note that the research was published before the news of Microsoft’s acquisition broke.
But here’s what I would point out to us…
Microsoft saw what I saw in Affirmed. And its acquisition signals what I’ve been saying for years. 5G is a critical piece of technology for the future. Big companies like Microsoft want to ensure they are prepared for it.
The chance to invest in Affirmed may be gone. But there are still plenty of great 5G companies for investors. In fact, there has never been a better time to invest in 5G technology.
With the world “self-isolating,” businesses and individuals are relying on wireless networks now more than ever to accomplish their daily tasks.
Companies that provide essential components for 5G networks are getting slammed with orders as we speak. Business is booming.
And yet, their share prices are trading at a discount.
This is an unprecedented opportunity. And it’s why I’m hosting the free State of 5G Summit next Wednesday at 8 p.m. ET.
I’ll share the type of 5G stocks investors will want to own to potentially see 1,000%+ returns during the 5G era. Go right here.
That’s all the time we have this week. If you’d like me to answer a question of yours in our next mailbag, write to me here.
Regards,
Jeff Brown
Editor, The Bleeding Edge
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