Tuesday marked the beginning of the largest annual event in customer-facing tech: The Consumer Electronics Show (commonly known as “CES”), held each year in early January in Las Vegas.
175,000 people from 160 countries will be pouring into the Las Vegas Convention Center to see the latest TVs, speakers, robot vacuums, and car concepts from hundreds of companies.
But there’s a reality between the eye-candy that the media wants to show you and the underlying reality where real money can be made in the markets. Finding those stock price-moving pieces of data is what CES is all about.
It’s truly a spectacle of new tech with fanciful features, outlandish promises, and more often than not, ludicrous price tags.
The show only just started, and we’ve already seen:
- A razor from Bic that measures how thick your facial hair is and how dull its blade is, and sends that information via Bluetooth;
- a prototype electric car from Sony, the electronics giant that’s never dabbled in transportation before;
- a rowing machine with a built-in 17.3-inch screen that turns your workout into games; and
- a flying taxi concept from Hyundai and Uber.
While a few of these fanciful items may make their way onto consumers’ wish lists, only one of them moved the stock price of a company – and we’ll cash in when it continues up. More on that below.
But don’t expect the flood of useless headlines coming out of CES to end there. We still have the rest of the week left, and I’m sure there are several big announcements still to come. The headlines will be full of gadgets coming out of CES for days.
As traders, it’s tempting to see this as a prime opportunity to make some money. It’s a trap that’s very easy to fall into – a company announcing a new and exciting product must be a good trade, or so we’d like to think.
Coverage from Wall Street and the Media pushes this idea too.
As I mentioned above, the reality gap is that what’s new and exciting is not always profitable for you…
Quite the contrary.
D.R. Barton, Jr.
P.S.: While I’m on the subject of big tech announcements creating huge profits, I want to make sure you didn’t miss this one…
On December 31, a brand-new California government mandate required solar energy technology on every new home built in 2020 – leaving every contractor, developer, and homebuilder in the Golden State scrambling to secure this $150 device that boosts the productivity of virtually any solar panel in the world.
This three-pound device has turned the world’s most abundant energy source into a “24/7 fuel,” and its distribution to just one state will spark a $32.5 billion opportunity for one tiny company. Click here to get the full story.