Dear Reader,
Suddenly, space is the place to be. The past few days have seen headlines littered with talk of billionaires heading into orbit.
Richard Branson’s Virgin Galactic flight brought him to space on Sunday, July 11. Purists might point out that his 53.5-mile-high flight fell short of the Kármán line. That 62-mile boundary is generally agreed on as where space begins.
Either way – he went way higher than I ever have.
And while he may be the first space billionaire, he certainly won’t be the last. In fact, in a few short days, on July 20, Jeff Bezos will ride Blue Origin’s rocket into space, promptly making him the second space billionaire.
Plus, Elon Musk announced he too will soon venture into the black of space riding a Virgin Galactic space plane.
Hype or not, one thing is clear: The age of space tourism has officially arrived. It may not yet be within the reach of everyday folks like you and me, but it will be within our lifetimes.
And today, I’m going to show you a way you can profit from this revolutionary age, all while sitting safely on the ground.
For those of you who don’t know me, my name is Jason Bodner. I’m the editor of Outlier Investor, which focuses on finding “outlier” stocks: the ones that outperform all the rest.
Professor Hendrik Bessembinder proved that only 4% of all stocks are responsible for 100% of the gains of the stock market above Treasurys since the 1920s.
That’s why I spent decades and hundreds of thousands of dollars developing an automated system that scans more than 6,000 stocks every day to identify the 4%… Stocks with the best fundamentals that Big Money is buying.
My system has helped me identify more than half of the top 25 performing stocks of the S&P 500 early in their moves, each year since my live and back-tested data began in 1990.
An outlier is defined as a person or thing that differs from all other members of a particular group or set. I just mentioned three outliers: Branson, Bezos, and Musk, whose combined net worth is $380 billion. Bezos has $212 billion; Musk has $163 billion. Branson has a far distant third place with a $6 billion net worth.
In similar fashion, outlier stocks often have humble beginnings, but they blossom into behemoths. Great examples of outliers would be Google (which I own shares in), Amazon, Apple, Home Depot (which I also own), and countless more. They all began as humble, small companies with a vision. And they executed year after year until they grew to epic heights.
While I currently focus Outlier Investor on finding established companies firing on all cylinders for my readers, future outliers can exist in the dream industries of tomorrow.
And I can’t think of another industry that excites my imagination like space travel. Only now, what used to be reserved for elite NASA astronauts and cosmonauts is now within the grasp of civilians.
Space tourism can be likened to the birth of aviation. In fact, I’d say it’s the new dawn of the Golden Age of Aviation.
Before 1903, people only dreamed of flying. Then the Wright brothers shocked the world with their first flight in Kitty Hawk. That paved the way for an entire industry of propeller- and then jet-based travel. It culminated in supersonic travel with the now retired Concorde.
Fast forward to 1961, and manned spaceflight began. That developed into trips to the Moon, space stations, and even unmanned spacecraft that left our solar system and still beam back data to this day.
The next natural evolution, of course, is civilian space travel.
And last week officially kicked it off. Virgin Galactic, Blue Origin, SpaceX, and other startups like Space Perspective are just beginning to scratch the surface of tourism opportunities.
But like the personal computer’s meager start in the 1980s, consumer space travel is small right now. The business is just getting started today, with a tiny market size of about only $750 million.
But it’s projected to easily grow 3x by as soon as 2026. The key here is… I am confident this industry won’t be shrinking – only growing.
So how do we gain exposure as investors?
It’s a double-edged sword: Space tourism is still years away from widespread accessibility. That means we may have to wait for a while to reap the rewards.
But it also means we can be early to the party. Think of early adopters… Such as investors in bitcoin when it was worth pennies.
And we have a few options for investing in the budding space tourism industry…
The easiest way to get broad-based exposure is to invest in space-related ETFs. These are exchange-listed funds that hold public companies with exposure to the space industry.
For general exposure to this trend, you could consider the SPDR S&P Aerospace & Defense ETF (XAR). It focuses on aerospace and defense, and it holds some industry giants like Northrup Grumman, Lockheed Martin, and General Dynamics – all of whom are making moves in the space travel arena.
A more focused – and potentially higher risk/reward – investment might be the ARK Space Exploration & Innovation ETF (ARKX). It holds great stocks focused on space exploration and innovation. But beware – it’s a very small fund at only $63 million. That’s tiny.
For a larger fund ($3.1 billion) with similar holdings, investors can check out the ARK Autonomous Technology & Robotics ETF (ARKQ). It holds many great stocks doing work in the space travel sector as well.
And then there’s the Procure Space ETF (UFO). It too is a small fund at $143 million… So watch out. Small funds tend to be way more volatile, and they can potentially cause trouble if you want a quick exit. The good news is that it has some great holdings.
Naturally, we can invest in individual space companies such as Virgin Galactic Holdings (SPCE), as well. But with hatchling companies like these, we have to expect a lot of volatility. So be ready for big ups and downs before investing.
And as other headline names like SpaceX and Blue Origin eventually reach the public markets, you can be sure we’ll keep watch for any outliers that appear in this space.
The outliers of tomorrow come across my radar all the time. And my system flags the best stocks getting bought by Big Money investors.
So as this new dawn of space travel gets underway, Outlier Investor will be sure to profile the next leaders of the space race.
Talk soon,
Jason Bodner
Editor, Outlier Investor
P.S. Mark this date on your calendar: July 28.
On that day, at 8 p.m. ET, Jeff Brown – founder of Brownstone Research – will be making a big announcement.
He’s discovered something that will enable regular investors to finally beat Wall Street at its own game. For too long, the big institutional players have reaped all the rewards… while regular investors are left with the scraps.
But now, Main Street will finally have the chance to balance the scales…
It’s all due to a “glitch” in the stock market… One that can predict massive stock moves weeks in advance.
This is something the financial elites don’t want you to know about… But on July 28, Jeff will be blowing the lid off this story. Even better, he’ll be giving away the name of a top “glitch” stock on his radar that you can invest in right away – for free.
It’ll be a night to remember. So to ensure you don’t miss a thing, simply go right here to claim your spot.
Like what you’re reading? Send your thoughts to feedback@brownstoneresearch.com.
The Bleeding Edge is the only free newsletter that delivers daily insights and information from the high-tech world as well as topics and trends relevant to investments.
The Bleeding Edge is the only free newsletter that delivers daily insights and information from the high-tech world as well as topics and trends relevant to investments.
