A Mid-Year Check On Our Predictions For 2022 (Plus A New “Bonus” Pick)
We just passed the mid-point of 2022.
If you’re like most investors, you’re probably ready for this year to be over and done. The market has not been kind to most of us.
But if you squint just hard enough, you can see some bright spots.
Case in point, around this time of year, I usually do a check-in on our annual predictions report.
Authored by my colleague Jimmy Butts and his research team over at Capital Wealth Letter, this report usually generates quite a bit of controversy. But it’s also one of the most profitable pieces of research we put out each year. In fact, we consider it required reading for any growth-minded investor.
That’s because there’s usually a few predictions that give investors the chance to make a killing each year – even in a less-than-stellar market like this one.
As you’ll see in a moment, a few have worked out just the way we thought. Others, not so much. And then, of course, the jury is still out on a few more.
That’s the cost of doing business when you do something like this. We’ve made no bones about it. So, in the interest of transparency, let’s check in and see how our predictions are doing…
A Mid-Year Check On Our 2022 Predictions
I’m going to give you a brief synopsis of our seven predictions for this year, including how the pick associated with the prediction has fared since the beginning of the year.
You’ll see where we got it right, where we got it wrong, and where we genuinely think there’s still time to profit.
Plus, at the end, I’ll also share a “bonus prediction” that Jimmy just released to his premium readers. You won’t want to miss it…
Let’s dive in…
Prediction #1: A private company will blanket the Earth in high-speed internet from space.
Details: You might be surprised to learn that roughly 20 million Americans alone still don’t have access to broadband internet. On a global scale, more than half of the world’s population doesn’t have access. The infrastructure challenges (and the economics) are tough to overcome in some remote areas.
But this is where satellites and Elon Musk come in. We’ve written about what Musk is up to over at SpaceX and its Starlink program before. Starlink is launching more and more satellites as we speak that can deliver low-cost broadband to millions of people and completely disrupt the telecom industry.
Of course, we can’t invest directly in Starlink. But even though one of our “backdoor” ways to invest has dipped by about a third this year amid the tech selloff, and we think it’s still a long-term “buy”.
Prediction #2: Cryptocurrencies will surge again in 2022… but the big winner won’t be Bitcoin, Binance, or Ethereum.
Details: Last year, in this very report we recommended that investors interested in this space take a look at Ethereum. Shortly after, it was up by 459%. And while we continue to like Ethereum and Bitcoin, there’s another name that we like even more…
This upstart digital currency was catching the attention of investors before crypto sold off big-time. We still like the long-term prospects of BTC and ETH, but we think investors would be wise to wait for the dust to settle before revisiting this smaller coin.
Prediction #3: Interest rates will surge in 2022, slaughtering bonds, and devastating millions of unprepared income investors.
Details: As the Fed turns of the printing presses and raise interest rates to combat inflation, we could see a major selloff. When the easy money dries up, we could see the bond market go into a temper tantrum. One way to profit from this is to short Treasury Bonds, which means if bond prices fall (yields go up) then you make money.
We recommended two ETFs that short “long” bonds and juice returns by using leverage. Both soared by as much as 120% at their peak – and are still up by more than 80%. While the big gains are likely already made, we still like this as a way to “hedge” any interest rate shocks.
Prediction #4: Our favorite “water play” for 2022…
Details: Believe it or not, more than one billion people each day don’t get enough water to drink, bathe, or wash clothes. Water — arguably our most valuable commodity will see billions of investment dollars poured into it, and companies serving this industry will be in high demand for years to come.
Our favorite way to profit is a little-known company that started buying up water rights years ago in Nevada and Arizona. The region is suffering from droughts and the competition for irrigation is fierce.
Our pick announced it was being acquired by the nation’s largest homebuilder DR Horton (NYSE: DHI) for $15.75 a share in April. The stock was trading just above $12 to start the year, giving investors a quick 30%-plus return.
Prediction #5: A new miracle fiber will hit the market that’s 35x tougher than steel.
Details: A tiny company in Michigan is working on a special material that sounds like it came from a Marvel comic book. It is four times tougher than Kevlar… 35 times stronger than steel… absolutely bullet-proof… and it has the elasticity and lightness of nylon.
After quickly surging by 30% this year, our pick is now down for the year so far. This one is a bit on the speculative side, but we think it’s still “in play” for 2022.
Prediction #6: “Flying taxis” will start operating in Los Angeles.
Details: Man has been chasing the dream of a flying car for more than a century. As roads and freeways become more congested, a handful of startups could turn this dream into a reality.
Our favorite pick in this space is leading the charge. There’s a lot more to say about this idea, and we plan to tell you more about this idea in the future. But for now, just know that we think this speculative pick could be one of our highest-upside ideas in years.
Prediction #7: The Megadrought in the western United States will get even worse, driving the price of wheat sky-high.
Details: Scientists are calling it a “megadrought” — by far one of the worst on record. It’s so bad, that some farmers simply opted out of planting crops at all this year as they know they will certainly fail. The price of a bushel of wheat nearly doubled in the two years before Covid. And the drought conditions aren’t helping future production, which means we can expect the price of wheat to keep creeping up.
We were confident this catalyst would continue sending wheat prices higher – but the Russia/Ukraine conflict poured gasoline on the fire. Prices have since retreated and we can’t predict how the war will play out, but investors had two chances to make 65% in just a few months before cashing out their gains.
BONUS Prediction: Your next Amazon package could be delivered by a drone…
This “prediction” is already coming to fruition… but this profit opportunity is JUST starting to heat up. Like the personal computer, the Internet, and the smartphone before them, drones will revolutionize daily life. These pilot-less aircraft are one of the most compelling investment opportunities you’ll see in your lifetime.
In our updated report, we lay out a strong case for a small company whose drones can fly anywhere in the world, even where there is no GPS. They can be used by the military, construction firms, oil & gas companies, and by first responders. It has even won a NASA contract for an upcoming mission to Mars.
It’s financially solid, the stock is cheap compared to peers, and it’s our top speculative “buy” for mid-2022.
Editor’s Note: Making predictions like this is never easy. But the potential payoff is worth it…
While we never expect all of our picks to pan out the way we think, we do expect some of our ideas to deliver triple-digit gains by year’s end.
There’s still time to get this year’s full report of profitable predictions – including our new bonus prediction.