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I’ve been recently answering the phone by saying: “If it’s not space, it’s probably a waste of time. How may I help you?” And I’m only partly kidding.
Let’s use a game that my seven-year-old daughter loves to play: “Would you rather?” When my daughter and I play, the questions will be of this type: “Would you rather be 20 feet tall or two feet tall?”
Would you rather try to game the short-term moves in the markets or invest in the one industry nobody is talking about but that is about to grow exponentially as the cost of getting to space is dropping and the things we can do in space are becoming more useful?
Would you rather buy the S&P 500 Index
SPX,
of the largest U.S. companies after it has doubled in 20 months and is trading at a high forward price-to-earnings valuation or invest in the one industry that’s not terribly overvalued based on the future explosive growth that’s about to commence?
Would you rather buy stocks for the App Revolution, which is now 13 years old, or invest in the sector that’s going to experience the most obvious future growth? I still love my App Revolution stocks and I even recently bought some Airbnb Inc.
ABNB,
and FuboTV Inc.
FUBO,
But where would you rather spend your investing time right now — space or TV streaming?
Would you rather invest in energy stocks at these levels or in something that’s actually cool, new and is going to help save future generations of humankind by making us multiplanetary?
Let’s put it this way: It sure feels as if most stocks we could pick right now (other than Space Revolution stocks) are going to reflect the broader markets. To be sure, if the broader stock market pulls back, so too will most space stocks. But I’ve left myself room to buy more of my favorite space stocks if and when they get hit.
We know the biggest gains come when there’s a multi-decade trend still in its infancy. I’ve tried to figure out the best, safest and most Revolutionary ways to invest for the long term. As a reminder, here are samplings of previous Revolutions I’ve written about: “50 Stocks for the App Revolution” (February 2011), “30 Stocks for the Cloud Revolution” (April 2011) and “100 Stocks for the Clean Technology Revolution” (January 2013).
The idea of trying to outperform the markets for the long term by joining the frenzy of people who are trying to game those stocks now seems far-fetched to me. As I’ve been writing, my favorite stocks in for the Space Revolution right now are Rocket Lab USA Inc.
RKLB,
BlackSky Technology Inc.
BKSY,
Redwire Corp.
RDW,
and Virgin Galactic Holdings Inc.
SPCE,
It might take a while for these ideas to join the 10-1,000 baggers that we’ve delivered over the years, but great things come over time with lots of hard work along the way.
One more thing: I’ve gone down the rabbit hole of creating a Space Cryptocurrency. It’s paying big dividends already, as I’ve learned so much more about crypto. I’ll soon share more about the Space Crypto we’re developing.
Cody Willard is a columnist for MarketWatch and editor of the Revolution Investing newsletter. Willard or his investment firm may own, or plan to own, securities mentioned in this column.
