The 5th generation mobile network, more commonly known as 5G, has started rolling out to many Americans who have newer smartphones. The technology promises to deliver very high data speeds, low latency, high reliability, and increased availability. That all sounds great, but what does it mean for you as an investor? Here is what you need to know about investing in 5G.
Why You Should Invest in 5G
Many investors are looking to find the next big innovation in the tech industry and this technology has the potential to make many savvy investors very wealthy. Since 2018, 5G has been slowly rolling out through telecom companies such as AT&T, Verizon, and T-Mobile. In order to take advantage of 5G, a consumer or business must have a 5G enabled device. These devices are just now starting to come out.
The leading US smartphone manufacturer, Apple has just announced their first 5G capable device, the iPhone 12. As any tech investor knows, Apple has a significant impact on the technology industry, and iPhone users are much more likely to upgrade their device to the latest device compared to Android users. With the release of the iPhone 12, a surge of 5G consumers will crop up. With this upcoming jump in adoption, 5G can be a very attractive technology to invest in.
Pay Attention To The Political Aspects
One thing you need to watch for as an investor in 5G, is the political component involved. The United States and China are currently undergoing a battle over the 5G technology. Chinese tech giant Huawei has been a hot topic in the cybersecurity world as many experts believe Huawei can pose a threat to national security if allowed to provide 5G cell towers in the United States.
Last year, Donald Trump the former President signed the Secure and Trusted Communications Act, with the goal of protecting our networks in the case of national security, and specifically 5G. This year our newest President, Joe Biden, vows to invest heavily into 5G and other technologies by proposing an accelerated research and development investment of $300 billion over 4 years to create millions of new jobs and propel the United States further in technology innovation worldwide. The proposal comes with the goal of not allowing China to surpass the United States in research and development, as they are currently on pace to accomplishing.
Understand the Risks
Anytime a new technology emerges, it poses a risk to investors. If the technology is successful, investors will enjoy the benefits, but like all new technology, there is no guarantee. In addition to the aforementioned political component and concerns surrounding national security, many believe 5g poses a health risk. While this may or may not be true, it can greatly affect the outcome of the 5G technology and whether or not it ends up being a worthy investment.
Groundbreaking new technology can be an exciting time for an investor, but it's not an easy thing to accomplish successfully. Paying attention to current trends in the technology industry, watching the presidential election closely, and understanding the risks of investing in something that has been a controversial topic over the years can greatly help you in your goal of being an accomplished 5G investor.
For more tips on investing in 5G, contact us today. Learn what #1 stock is poised to benefit from 5G! Here's a little secret — that stock isn't AAPL. We have our eyes on a company that's under the radar and set to take off over the next several months.