Van’s Note: Van Bryan here, Jeff Brown’s longtime managing editor. In December 2019, Jeff and I sat down to discuss the biggest technology stories of that year and to get his predictions for what 2020 would hold.

That series was a hit with readers. So in mid-December, I asked Jeff to sit down again to revisit his predictions and to look forward to the new year.

Over the next few days, we’ll be sharing those predictions with readers. Jeff will reveal what he sees coming for 5G networks, biotechnology, and the booming IPO market. He’ll even share what he thinks a Biden administration will mean for the technology market.

But for our first issue, we had to start with the story of the year: COVID-19. Read on to see what Jeff Brown sees for the pandemic in the new year and the investment implications it will present.

Van Bryan: Jeff, thanks for sitting down to discuss the biggest topics of 2020 and give us some of your predictions for 2021.

Jeff Brown: Of course. Happy to do it.

Van: We’re going to cover a lot of ground over the next few days. But I think we have to start with COVID-19. When you look back on the year, what stands out to you as it relates to the virus?

Jeff: Well, as you know, I had been tracking this virus since the start of the year. Reports of a virus with flu-like symptoms were coming out of Wuhan, China. And I knew almost immediately that this could have far-reaching consequences.

After all, I lived through the 2002–2003 SARS epidemic that originated in the Guangdong province of China. At the time, I was living and working in Japan, building a large regional business.

I remember traveling to Hong Kong during that time for business. The city was deserted. It was the same with the hotel. It was practically empty. I knew then that I had made a stupid mistake coming to Hong Kong. I stayed one night, never left the hotel, and then returned home. Remember, the mortality rate for SARS was close to 9.5%.

In many ways, the world got lucky with COVID-19. It’s not nearly as deadly as SARS. In fact, there’s a growing collection of research that demonstrates it’s no more dangerous than a bad influenza for most people.

But when I look back on the year, it’s not the virus itself that stands out to me. It was our reaction to it.

Van: How do you mean?

Jeff: A lot of people like to say that COVID-19 was a “black swan” event, something that radically and permanently changes society. I disagree.

Coronaviruses are nothing new. Humanity has been dealing with them for literally thousands of years. COVID-19 was not the first. It won’t be the last.

But what was unique about this coronavirus was our reaction to it. The real “black swan” event was our reaction to the virus – the global economic lockdowns and new social practices like social distancing and contactless transactions.

For instance, most people didn’t even notice that digital advertising is now more than 50% of all advertising in the United States. This spike was caused by us spending more time online working or entertaining ourselves.

Or look at e-commerce. I shared an insight with readers of The Bleeding Edge back in August. U.S. e-commerce as a percent of retail shot up 36% quarter on quarter and 49% year on year.

These are just two examples. We could spend days discussing which technologies have benefited from COVID-19 lockdowns.

Food delivery, contactless transactions, autonomous driving technology, cloud-based software, cybersecurity – all these industries are booming right now.

And I feel I have to mention that my readers have been profiting from this trend.

For instance, we’re up over 340% with DocuSign, over 180% with Square, and about 78% with Amazon in our Near Future Report portfolio.

Amazon’s e-commerce and logistics network basically became a public good when the lockdowns hit the U.S. earlier this year. And the dramatic spike in cloud-based applications created even more demand for Amazon Web Services (AWS).

Square’s peer-to-peer money transfer application, Cash App, is the simplest and most user-friendly way to conduct contactless transactions.

And DocuSign – a company that specializes in online contracts – saw its share price surge as the world socially distanced and conducted more business transactions online.

It’s been an incredible year for technology investors, and for readers who have been following my research.

Van: It’s been a great year. I looked at The Near Future Report model portfolio earlier. Of the 25 open positions, only one stock is showing a loss, a measly 6%. The remaining 24 recommendations are up triple digits or high double digits.

But I have to ask the obvious questions: Can readers expect this sort of performance going forward? Will the adoption of these new technologies slow if a vaccine is approved and the world returns to “normal?”

Jeff: I’m glad you brought up the topic of vaccines. That’s my first prediction for 2021.

I predict that there will be no fewer than three vaccines approved by the Food and Drug Administration (FDA) by the end of January. You and I are speaking in mid-December. So by the time this publishes, there might already be new developments on this front.

And I’ll go one step further. Within the calendar year 2021, we can expect anywhere between 500 million to a billion doses of vaccine to be issued around the world. And the vaccine will be prioritized for the most at-risk populations.

By mid-2021, I wouldn’t be surprised if there is a glut of COVID-19 vaccines. What this means is that we are months away from this pandemic being effectively over.

But the habits that consumers and businesses have formed this year will stay. Consumers have learned how convenient these new technologies are. And enterprises are learning that a remote workforce can be just as effective.

In many ways, technology companies have been waiting for a catalyst like this. I like to say they have been “lying in wait.” They needed some major event that would “force” the world to use their products and services. Our response to COVID-19 was that event.

Pick almost any technology you want, and you’ll see that the adoption of it has been pulled in by five to ten years.

The investment implications of this are enormous.

Van: Let’s talk about that. Where are you going to be focusing your research in 2021?

Jeff: We’re going to be targeting several technology trends next year. 5G is getting very “real.” Artificial intelligence is hitting a major inflection point. Self-driving electric cars are also going to have a great year in 2021.

[Van’s note: Jeff Brown recently published a new recommendation targeting the booming market of self-driving electric vehicles. Readers of The Near Future Report can read it here. And readers who would like to subscribe to gain access to this recommendation can go right here.]

But I’d be remiss if I didn’t mention the incredible opportunities that are forming in the biotechnology space.

Consider this. Even with fewer clinical trials – because patients were not comfortable going into medical facilities – the biotechnology space took in record venture capital (VC) funding. Biotechnology also had record levels of initial public offerings (IPOs).

The fact that this industry could have its best year in terms of capital formation and IPOs during all this chaos really tells you something.

And the incredible vaccine victories we’ve seen in literally just a matter of months has put a spotlight on biotech like never before. This year has been like a shot of adrenaline for the industry. We’re in hyperdrive right now. And it’s not going to stop.

I’ve said it before, but I’ll mention it again. The 2020s will be the decade of biotechnology. Fortunes will be made in the years ahead. And my readers can expect to receive research and recommendations on the best biotechnology investments out there.

Van: Thanks for your time, Jeff.

Jeff: Anytime.

Van’s Note: Be sure you tune in tomorrow for our next edition of Jeff Brown’s 2021 prediction series. We’ll discuss how the world will remember COVID-19 and address a few angry emails we received from readers. Catch that in The Bleeding Edge tomorrow.

And as Jeff mentioned, biotechnology is on fire right now. For readers who haven’t positioned their portfolio for this massive trend, learn more about Jeff’s No. 1 biotech stock to buy now by clicking right here.

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