• “Google CANNOT be trusted! Period!”
  • Here’s everything you need to know about Wi-Fi 6E
  • The real reason I left the corporate world…

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.

There are a few more comments than usual this week. That’s because there were several pieces of feedback I wanted to highlight. We’ll get to the questions in just a moment, but not before we have a quick look at the latest economic numbers. I wish I had better news.

The U.S. added another 3.8 million jobless claims, putting the total above 30 million, as I expected. This occurred in a matter of just six weeks. I’ve never seen anything like this.

We shouldn’t be surprised that consumer spending in March dropped 7.5%. That’s the steepest decline since the U.S. started collecting data back in 1959. It’s obvious that both April and May numbers, when available, will be dismal as well.

And we are now starting to see the cracks, the impact from the lockdowns. Apparel company J. Crew is in the process of a bankruptcy filing, and retailer Neiman Marcus is rumored to be doing the same.

I don’t have space today, but this pandemic is an accelerant for societal changes that have been in progress for years. We’re seeing the beginning of a rapid shift in how we work, learn, live, and play.

This is a topic I’ll be writing a lot more about. And, of course, we’ll be investing in tech companies that will benefit from this trend.

We’re going to turn to our mailbag next. But one last note: Before we get to today’s edition, I wanted to inform readers about an event my friend and colleague Teeka Tiwari is hosting next week. Some readers may recognize Teeka for his research in the cryptocurrency space.

As my readers know, I haven’t been focused on digital assets in my own research. But I do believe in the long-term investment potential of quality digital assets. And I know this is an area of interest for investors.

So for readers who are interested in cryptocurrencies, I’d recommend you hear what Teeka has to say next Wednesday at 8 p.m. ET.

I’ve known Teeka a long time. And I respect the work he does on behalf of his readers, especially his emphasis on risk management and position sizing.

And right now, Teeka believes a handful of cryptocurrencies will shoot higher on the back of an impending catalyst.

This catalyst is expected to go down on May 12. Already, bitcoin has climbed 81% in less than two months in anticipation. And Teeka believes a handful of smaller cryptocurrencies will shoot even higher.

I’ll leave it to Teeka to present his full analysis next week. Readers can save a spot right here.

Now let’s turn to the mailbag. If you have a question you’d like answered next week, be sure you submit it right here.

Readers tell Google precisely what they think of its health care ambitions…

On Tuesday, I shared an insight on Google’s broader health care ambitions. Google just released its Cloud Healthcare API. It’s an interface that would allow the medical industry to access and store patient data across many systems.

This would address a major pain point for the medical industry. Doctors, hospitals, and insurance companies could easily access patient data. Google is attempting to solve the interoperability problem that has plagued the system for decades.

But, of course, it would also mean that our most sensitive medical information would be in the hands of Google. Given the company’s poor history of respecting user privacy, I was curious what readers of The Bleeding Edge thought of this development.

And readers certainly didn’t disappoint. There were too many responses to publish them all here. But here’s what a few of your fellow readers had to say on the subject.


Richard F.

Hi, Mr. Brown,

Thank you for giving us the opportunity to address this issue. This is very troubling to me, and I do not know why our government has not put a stop to this. Big Brother’s outstretched arms (Google) are becoming more encompassing year by year.

I work in health care, and I can easily see this type of health care acquisition being used in the future to prioritize who lives and who dies based on comorbidities being present or not.

Gregory W.

The “convenience” factor is a red herring! Those who are willing to sacrifice privacy for the sake of convenience will, likely, be willing to exchange freedom for security. In prison, you have alleged security, free room and board, free medical care, and zero freedom – a socialist’s paradise!

Doc J.

I hate everything about Google having access to anyone’s health records. I find this information infuriating. I will take the time to fill out new paperwork whenever I visit a health care professional. Thank you for keeping us informed.

Mary G.

As a physician with 55 years of practice behind me, I realized early in my practice that truly sensitive information should never be put in a patient’s chart. Almost anyone could subpoena a record for almost any reason, and although we still give lip service to doctor-patient confidentiality, insurance has destroyed that dream decades ago.

Having instant access to a patient’s history does have a great medical advantage, but there are just too many snakes in the swamp to make it a desirable thing. Unfortunately, there is every reason to assume it will happen.

Earl G.

Hi, Jeff: How is it possible for Ascension to share that confidential patient information while we have strict HIPAA laws? I just don’t understand how that Ascension service provider contract could have been written to Google? If you can elaborate on this legal issue, I would love it to hear from you in a follow-up post.

Mirjam W.

Thanks to everybody who wrote in. These are sharp comments. I’m happy to see so many readers engaged in the topics we cover.

And to answer Mirjam’s question, Google claims it is fully compliant with the Health Insurance Portability and Accountability Act of 1996 (HIPAA) when it acquired this data from Ascension.

That’s because HIPAA allows firms like Ascension to share patient data with an outside business – like Google – if the data is being used to carry out and improve health care tasks. This is pretty broad language.

Unsurprisingly, that’s precisely what Google claims it is doing. The company says it wants to deliver better health care outcomes.

But we all know that Google doesn’t do anything unless it furthers its goals of amassing as much data on users as possible – this drives Google’s entire business… advertising revenues.

I think it goes without saying, the 1996 language from HIPAA needs to be updated with a whole lot more specificity. From a technology perspective, 24 years ago feels like a completely different era – almost the Stone Age.

After all, Google wasn’t even founded until 1998, two years after HIPAA was put in place.

I’m going to be watching this trend carefully. Be sure you keep reading The Bleeding Edge for more updates.

Understanding the implications of Wi-Fi 6E…

Next up, a reader has a good question about Wi-Fi 6E…

Jeff, I just read your report about Wi-Fi 6E in today’s Bleeding Edge. I am curious. Will this new Wi-Fi spectrum require devices (computers, phones) to have Wi-Fi 6E semiconductors to be able to communicate with the 6E router, or will the current version of the Wi-Fi protocol still connect in the higher spectrum range?

– Tim T.

Thanks for the question, Tim.

For readers who missed it, Wi-Fi 6E is a topic we covered on Tuesday.

Anyone who has an internet router at home or in an office most likely has a Wi-Fi network as well. These networks operate over the 2.4 GHz and 5 GHz Wi-Fi bands.

And if you look at all the Wi-Fi networks in range of your home and office, you’ll notice that these frequency bands can get crowded.

The more Wi-Fi networks in range, the more crowded these frequency bands are, and the slower our internet tends to be. Radiofrequency interference causes this. And this can also lead to connectivity issues.

Have you ever been mysteriously disconnected from your Wi-Fi for seemingly no reason? Or connecting to your Wi-Fi is unusually slow? Now we know why.

So the Federal Communications Commission (FCC) is doing something about that. The FCC just auctioned off spectrum for the 6 GHz frequency bands. That’s what “6E” stands for. And we will need special Wi-Fi 6E routers to access this frequency band.

But to answer your question, Tim…

Yes, to take advantage of the 6 GHz frequency bands for the next generation of Wi-Fi technology, consumers will need not only new internet routers and/or Wi-Fi 6E access points but also new smartphones, tablets, laptops, and so on (e.g., the devices that connect to the Wi-Fi 6E networks).

I know that this sounds kind of crazy, but new semiconductors are required in order to transmit and receive at these higher frequency bands. There is no way around it.

To take full advantage of Wi-Fi 6E, we’re going to have to replace our in-home/office Wi-Fi hardware and upgrade any device that connects to Wi-Fi networks.

This situation is much like what happens when we migrate from 4G to 5G wireless networks. And the same is true with backward compatibility. Wi-Fi 6E-enabled devices will still function on older Wi-Fi networks when a 6E network is not present.

Just like with the earliest 5G networks, I’m excited to test Wi-Fi 6E technology when it comes out.

The real reason I left the corporate world…

Next up, let’s address a question from a reader who’s curious about our business model…

Hi, Jeff, no doubt you’re a smart man, so why are you trying to make a pittance from little people like us? You say that you are already a millionaire, who knows how many times over. I think you don’t need the money. So why?

Len M.

Hi, Len. Thanks for writing in. Sometimes I’m asked why I take the time to respond to critical or suspicious comments. My answer is time.

It is our most valuable asset, and what we choose to do with it is what determines our outcomes. And I appreciate that you choose to spend some of your time with us here at The Bleeding Edge.

You’re right. I don’t have to work. However, I choose to work.

I have two young children and I want to set an example for them. I want to teach them the value of hard work, dedication, perseverance, and grit.

They are the reason that I stepped down from my corporate roles. I wanted to be present as a father. In order to do that, I needed to have control over my schedule.

When I was working in corporate high tech, I had no control over my schedule. And most nights, I wasn’t even home for dinner due to customer and partner dinner meetings and travel.

And for those who know me well and who have been reading my work for a while, you’ll know that I’m on a bit of a crusade. Why?

The markets aren’t fair, and in many ways, they are rigged. Those on Wall Street and working for hedge funds have a huge information advantage over normal investors. And they take advantage of retail investors every day.

I learned this the hard way. I didn’t have a teacher to help me learn the ropes of investing. I certainly made my share of innocent mistakes when I was younger. And I didn’t come from Wall Street or a wealthy family. I built my career from the ground up.

When I was working in the corporate world, I didn’t have the time to research investment opportunities. I wished that I had trustworthy research that would allow me to grow my wealth investing.

So I’ve been building the research products I wish I’d had back then. I do my best to share insights from the real world, not Wall Street, so that we – normal investors – are the ones who have an edge.

There is also a large team behind me that enables the production, and distribution of The Bleeding Edge and my other research products every day. They count on me as much as I count on them. Producing a “free” product actually costs a lot of money, which is why we need a business model to support that.

I spend six figures a year on expensive data sources and information that helps support my research. As you might imagine, there is a heck of a lot that goes on behind the scenes.

I’ll admit that I get great pleasure every year when my investment research and model portfolios outperform the market indexes as well as the best hedge funds by a wide margin. That always puts a smile on my face.

And I have big plans for my business this year and next. I have been particularly focused on bringing the kind of investment research and ideas that historically have only been available to high-net-worth individuals to my readers.

I have some exciting things in the pipeline that I hope to be able to talk about in the next few months.

But none of that would be possible without a sustainable business model. And ours is unique. It is conflict-free. We do not accept any kind of marketing fees, advertising fees, or commissions of any kind for any recommendations that we make.

And my contract prohibits me from investing in anything I recommend or from recommending anything I am invested it. That way, my research is 100% objective and only in the best interests of my readers.

So I’m going keep swinging hard and providing my readers the kind of insights and research that I would want to have. And I’m going to be there for my kids when they need me.

Thanks again for your time.

How my readers are profiting from 5G…

Let’s conclude with a piece of feedback that really made my day. But first, a bit of context…

As my longtime readers know, I’ve been closely tracking the 5G wireless rollout going back to 2017. In 2017–2018, I knew the world was entering “Phase One” of the 5G wireless rollout.

As a reminder, Phase One is the infrastructure phase. This is when network providers around the world spend billions of dollars to erect and maintain network equipment. To take advantage, I recommended SBA Communications (SBAC) to readers of my Near Future Report in June 2018.

SBA Communications owns the towers that wireless network operators put their communications equipment on. And I predicted that we would double our money in less than three years with SBAC. As it turns out, it didn’t take nearly that long.

Last Friday, I issued a sell alert for SBAC. Readers locked in gains of nearly 90% in under two years.

In response, a reader wrote in with her experience…

Jeff, I locked in an 89% gain with our sale of SBA. I am a small investor that can only allocate $5–6k per trade since I like to participate in all of your monthly suggestions. I was able to utilize some of my gains to purchase your Early Stage Trader.

Hopefully, the market will rebound. It’s hard as a small investor to take advantage of all of your research options. I love your research and really appreciate your free newsletters! It really means a lot to me to be able to invest like “an insider.” Thank you for all that you do for the little guys! Your newsletters are a highlight, and I never miss them.

– Pam F.

Hi, Pam. That’s wonderful to hear. I’m glad that you’re enjoying learning more about the world of high technology and that you’re profiting from the research as well. And as you likely know, we have a lot more to look forward to.

As longtime readers know, COVID-19 has highlighted the urgent need for bleeding-edge technology like 5G, artificial intelligence, 3D printing, robotics, biotechnology, and cloud-based applications.

And we need to look no further than our sale of SBAC for the evidence. Here we have a 5G company that was pummeled with the wider stock market in early February.

But the market quickly realized its mistake. And as investors processed how important 5G wireless technology is during a period of lockdown, SBAC more than recovered and even hit an all-time high. Meanwhile, the S&P 500 is still 15.5% off its peak.

Pam, as you probably know, COVID-19 is going to usher in a “new world order” for investors. The lessons learned will impact how we work, communicate, manufacture goods, and entertain ourselves.

As a result, some industries will suffer. Some well-known companies will even disappear altogether. But the companies that are powering the technologies I mentioned above will prosper. And that is precisely where we will focus in the months and years ahead.

Be sure you watch for our next issue of The Near Future Report. It will be published Monday evening.

I’m very excited about this next issue. It’s about a company whose products play right into this shift in technology. This company’s products are used in everything from autonomous vehicles… to 5G networking equipment… solar panels… hyperscale data centers… and even AI applications.

I can’t wait for members of The Near Future Report to read it.

And for any investors who would like to come aboard as we profit from these emerging technologies, I would love to have you as a subscriber. Go right here for more details.

That’s all the time we have this week. Remember, if you’d like me to answer one of your questions, be sure you submit it right here. I’ll do my best to tackle it in our next mailbag.


Jeff Brown
Editor, The Bleeding Edge

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