Shelter-in-Place Stock Market Update 2.5.2021 – The Investment Case for 3D Printing.

Tom Vaughan is a Certified Portfolio Manager and CEO of Retirement Capital Strategies. Retirement Capital Strategies is a registered investment advisor located in San Jose, California.

The opinions voiced in these presentations are for general information only and are not intended to provide specific advice or recommendations for any individual(s). The information provided herein is obtained from sources believed to be reliable, but no reservation or warranty is made as to its accuracy or completeness. Statements and opinions are subject to change without notice. Asset allocation and portfolio diversification cannot assure or guarantee better performance and cannot eliminate the risk of investment losses. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. Accordingly, you should not rely solely on the information contained in these materials in making any investment decision as the material does not take into account your particular investment objectives, financial situation or needs and is not intended as recommendations appropriate for you. You must make an independent decision regarding investments or strategies mentioned in this presentation. Before acting on information discussed in this presentation, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment advisor. Prospectuses, investment objectives, risks, charges and expenses of any investment product should be reviewed carefully before investing. This platform is solely for informational purposes. Advisory services are only offered to clients or prospective clients where Retirement Capital Strategies and its representatives are properly licensed or exempt from licensure. No advice may be rendered by Tom Vaughan or Retirement Capital Strategies unless a client service agreement is in place. “Likes” are not intended to be endorsements of our firm, our advisors or our services. Please be aware that while we monitor comments and “likes” left on this page, we do not endorse or necessarily share the same opinions expressed by site users. While we appreciate your comments and feedback please be aware that any form of testimony from current or past clients about their experience with our firm is strictly forbidden under current securities laws. Please honor our request to limit your posts to industry-related educational information, comments and questions. Third-party rankings and recognitions are no guarantee of future investment success and do not ensure that a client or prospective client will experience a higher level of performance or results. These ratings should not be construed as an endorsement of the advisor by any client nor are they representative of any one client’s evaluation. Investment positions mentioned in these videos may be held in some of our existing portfolios. Tom Vaughan and Retirement Capital Strategies are unaffiliated and separate from those companies whose investment positions are mentioned and is not liable for their products or services.

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Transcript

Well, hello, everybody, welcome to Friday, pretty amazing week, it’s our fifth day in a row every day this week, the S&P 500 went up, that’s pretty unusual actually, was up about .4% today, which is good, we’ve got some good, you know, lack of overhead resistance. Now, hopefully we can continue to run clean energy had sort of, you know, medium day again, seems to be kind of sitting for a while. So our portfolios did just medium also, but very, very good altogether so far this year. And we just made one change. And we moved into a little bit of the 3-D printing.

I showed you a few videos ago, kind of as an emerging growth trend, what was happening there. So let me let me just kind of dive in and show you what I’m looking at and why we made this move today. So first of all, the 3-D printing, Exchange Traded Fund, there’s only one of them, is managed by this group called Ark. And Ark has several other ETFs. And they have been managed by a lady by the name Cathie Wood and her team. And so just to give you an example, this is all 2341 different ETFs in existence that I’m following. So I’m not looking at the leveraged ones, just these. But look at this, there’s Ark, Ark, Ark, there’s five of her ETFs in the top 25 different ETFs. Now, again, this is out of 2341. She’s really, really doing well. And we own several of these pieces, we own ARKG, we own ARKK, here, et cetera. And so if you go down here, we can see, and I put a slight different color. So you can see, here’s the 3-D printing. And that was in what 55th place, not bad, again, out of that many. But if I, if I show you here, now I’m going to rank these by nine months return instead of 12. And you can sell there it is jumps up into the top 30. And still got all of our other pieces unbelievable returns the last nine months. Here we go last six months moving up again, again, sorting that last three months, etc. So you can see what’s happening, the trend, and the kind of that emerging piece there, I can see this on the chart, the relative strength is there, and all those different types of things. And Ark has a really interesting piece on their website called The Investment Case for 3-D Printing. I’ll point out a couple of pieces. First of all, this is the number of Google searches around 3-D printing, it’s a rough way of kind of seeing what kind of interest is out there. And you can see here in 2013, was a really hot subject, and has died off dramatically. This is very common.

With new technology, there’s all this hype around it before it’s really ready to go. And most of this was around consumer 3-D printing and not the manufacturing, which is what I’m about to talk about now. But what they’re saying is that the markets probably under estimating the power of 3-D printing. And so they give some examples here. One is the adoption, you know, for airplane engine manufacturing, so there was 19 roughly parts made in 2015. And now 304 being made. Projection by 2024 was 4000 of the parts in an aircraft engine might be made by 3-D printing. And the total number of parts comes down, which is of course, a big efficiency from it looks like about 225,000 to about 50,000 parts in that airplane engine. And they give another example here with a rocket engine. So traditionally, manufacturing 100,000 parts takes 24 months to build, essentially 48 months of design time. It’s all human design parts and very complex supply chain. And a 3-D printed rocket manufactured is about 1000 parts, two months to build instead of 24, six months to design instead of 48. It’s computer generated design, simplified supply chain, etc. And so I think this is a really interesting area.

I like to ride waves and momentum. And you know, we’ve had some really good success doing that. That seems to be one of the emerging trends that’s coming out. I hope it continues, you know, we’ll watch and see what happens. But I’m pretty excited about it was up a bunch today again. So that’s a good sign that there seems to be some real interest in this area right now. And so let’s wait and see what happens next week. You know, we just have had a great week altogether, just in terms of the recovery from last week. And so I think that’s good. I love the fact that we’ve gone a little bit sideways here for a while. I think that’s important. Let off some of the steam for this big run up. The stimulus package is on the way. That should be a big deal to the market at some point here also. So let’s see what happens on Monday. I’ll talk to you then. Thank you very much.

Tom Vaughan is a Certified Portfolio Manager and CEO of Retirement Capital Strategies. Retirement Capital Strategies is a registered investment advisor located in San Jose, California.

The opinions voiced in these presentations are for general information only and are not intended to provide specific advice or recommendations for any individual(s). The information provided herein is obtained from sources believed to be reliable, but no reservation or warranty is made as to its accuracy or completeness. Statements and opinions are subject to change without notice. Asset allocation and portfolio diversification cannot assure or guarantee better performance and cannot eliminate the risk of investment losses. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. Accordingly, you should not rely solely on the information contained in these materials in making any investment decision as the material does not take into account your particular investment objectives, financial situation or needs and is not intended as recommendations appropriate for you. You must make an independent decision regarding investments or strategies mentioned in this presentation. Before acting on information discussed in this presentation, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment advisor. Prospectuses, investment objectives, risks, charges and expenses of any investment product should be reviewed carefully before investing. This platform is solely for informational purposes. Advisory services are only offered to clients or prospective clients where Retirement Capital Strategies and its representatives are properly licensed or exempt from licensure. No advice may be rendered by Tom Vaughan or Retirement Capital Strategies unless a client service agreement is in place. “Likes” are not intended to be endorsements of our firm, our advisors or our services. Please be aware that while we monitor comments and “likes” left on this page, we do not endorse or necessarily share the same opinions expressed by site users. While we appreciate your comments and feedback please be aware that any form of testimony from current or past clients about their experience with our firm is strictly forbidden under current securities laws. Please honor our request to limit your posts to industry-related educational information, comments and questions. Third-party rankings and recognitions are no guarantee of future investment success and do not ensure that a client or prospective client will experience a higher level of performance or results. These ratings should not be construed as an endorsement of the advisor by any client nor are they representative of any one client’s evaluation. Investment positions mentioned in these videos may be held in some of our existing portfolios. Tom Vaughan and Retirement Capital Strategies are unaffiliated and separate from those companies whose investment positions are mentioned and is not liable for their products or services.

By participating in any of these live streams, you agree that any questions submitted by you might be used by us in the future on this YouTube channel. We will not share your personal information.

If you have questions, please write to us at: asktom@talkmoneywithtom.com.

  • MoneyGuidePro®
  • Advent Software/Black Diamond Reporting
  • Riskalyze, Inc.
  • thinkpipes®
  • Right Capital
  • YCharts, Inc.