Quantum Computing. Have you been hearing about the next big thing in investing: quantum computing? Should you jump in now? Below are the topics we’ll cover in this blog. What is Quantum Computing? Challenges: Errors and Heat Applications and Security Leaders vs. Opportunists First Mover Advantage Tier Zero Opportunities Quantum Funds & Individual Stocks More information on each point is listed below. What is Quantum Computing? Perhaps the best way of understanding quantum computing was offered by tech unicorn and Silicon Valley venture capitalist Marc Andreessen after Google’s Willow Quantum Chip reportedly demonstrated “error correction and performance that paves the way to a useful, large-scale quantum computer.” Google’s announcement was made on Dec. 9, 2024. Andreessen addressed the breakthrough on Instagram, trying to put the astonishing feat into an analogy that regular folks would understand, saying, “The most enticing thing of what they said is that in theory the lab demonstration is doing a computation that the entire universe that we live in, if every atom were turned into a giant computer, that computer couldn’t solve that problem before the universe dies… We live in a multiverse.” Quantum computing is seeking to solve challenges that normal computers simply cannot by tapping into what are believed to be parallel universes. Challenges: Errors and Heat It’s important to understand that quantum computing is still prone to errors and is not accurate or reliable enough to be useful. The Dec. 9, 2024, breakthrough is an important step on the path to applications that could be 5-15 years away. Our brains have to go interstellar to begin to comprehend how quantum is pulling in parallel universes to solve problems that are impossible to crack here on Earth. An interesting quirk is that quantum computers function at temperatures that are colder than outer space. Energy costs are another prohibitive expense for companies that seek to be the game-changer in this nascent industry. Progress is being made on the temperature challenge front, too. Professor Yoseob Yoon, an assistant professor of mechanical and industrial engineering at Northeastern University, has “discovered a way to create atomically thin transducers that could one day enable quantum computing at room temperature.” The Willow and the room temperature experiments were both published in 2024. Peer reviews continue, as will innovation. Applications and Security According to Hartmut Neven, the founder and lead at Google Quantum AI, Quantum computation will help us “discover new medicines, design more efficient batteries for electric cars, and accelerate progress in fusion and new energy alternatives.” Quantum computing, once achieved, will be a gamechanger for many industries beyond those mentioned by Neven. One can conceive of benefits in everything from food production, to space travel, to financial services and everything in between. It will also be a nightmare for cybersecurity, allowing anyone with the quantum capability to crack encryption codes quickly and efficiently. Companies that offer cloud services, including Amazon, Google, IBM and Microsoft, are already training their clients to be Quantum Safe and Quantum Ready. Leaders vs. Opportunists Apple was born in a garage with Steve Jobs and Stephen Wozniak. Google incubated at Stanford University with Sergey Brin and Larry Page. Who will be the famous names we remember most for quantum computing? Are they already working on a Magnificent 7 project, in a university lab, or are they hiding in a garage somewhere, with supportive parents or friends who complain endlessly about the electric bills? Will it come in through open source? Most companies and projects are encouraging open source contributions. D-Wave Quantum (symbol: QBTS) was founded 26 years ago and has partnered with Google, NASA and Lockheed Martin. As is the case with all quantum computing companies and projects, D-Wave is in cash burn mode. The company’s net loss in the most recent quarter was -$22.7 million, with only $29.3 million left in cash and cash equivalents (at the end of Sept. 30, 2024). That’s flying very close to the trees – something that all investors should be concerned with before investing in an industry that is not yet close to lift-off. Some projections say that quantum computing applications will be viable by 2035-2040. (Others predict within five years.) The downside of AI is that the minute we search for quantum computing, we’re going to be handed over to marketers and advertisers. The predators come out in force whenever any industry gets hot. Be VERY careful with hot tips, whether they come from friends, emails or on social media. Ruses can be very convincing these days. First Mover Advantage The company that cracks the code is the one that will become ten times more valuable overnight. This recently occurred with Nvidia. Nvidia’s stock has soared over 10-fold above its 2022 low point and is one of the biggest companies in the world today, with a market value of $2.9 trillion. The same occurred after Apple introduced the smart phone in 2006. Today’s share price of $230 makes the 2006 price of $5 look like a rounding error. However, there is more to the story. (Keep reading.) Tier Zero Opportunities Investors are encouraged by newsletter writers to jump in on Quantum Computing as a Tier Zero opportunity, with analogies of just how rich early-stage investors became on Nvidia, Amazon, Apple and more. Stocks are at all-time highs and investors are elated. It’s easy to think that everything will just keep going up, since technology stocks have been on fire for two years now. However, just three years ago, these same innovators were some of the worst performers on Wall Street. In 2022, Nvidia’s share price was cut in half, while Tesla, another game changer, lost 2/3rds. Nvidia dropped -17.6% on Jan. 25, 2025, when it was reported that China’s DeepSeek app could challenge U.S. artificial intelligence. Apple wasn’t immune to the Great Recession, even though the company had launched the smartphone only a year prior. The company’s share price sank by -50% between Oct. 2007 and March 2009. While it might be easy to say, “I’ll just ride it out or wait and see,” that is ignoring just how hard it is when we lose so much, and how long it might take to recover. Our net worth plunges, along with our FICO score and our ability to capitalize on opportunities to buy low. Dot Com stocks were Tier Zero opportunities in 1999. Between March of 2000 and October of 2002, the NASDAQ Composite Index dropped -78%. (A million-dollar investment sank to a value of just $220,000.) Many of the Tier Zero opportunities (eToys, Pets.com, eXcite, AskJeeves) of the Dot Com Bubble went bust by 2002. It took the NASDAQ Composite Index 16 years to reach the highs set in March 2000 again. Investing in Tier Zero opportunities can be expensive in recessions, particularly if we purchase at the top of the bull market. While dollar-cost-averaging into a hot slice of an age-appropriate, properly diversified nest egg helps to smooth out the volatility, it doesn’t eliminate the problem of trying to pick the next Steve Jobs or the risk of investing in an early-stage quantum computing fund. Quantum Funds & Individual Stocks At our investor retreats, we encourage attendees to lean into funds over individual stocks, particularly now that the market is being driven by just seven companies. ETFs allow us to target very specific areas. There are more than a dozen technology options offered on iShares (owned by BlackRock), including cybersecurity, AI, self-driving, 5G and beyond. If you’d like an Artificial Intelligence Fund, there’s ARTY or TECB (breakthrough technology, rich in the Magnificent 7). You can even purchase an iShares Bitcoin or Ethereum ETF. iShares doesn’t offer a Quantum Computing ETF yet. However, currently the best option for investing in quantum lies in the Magnificent 7 companies (TECB). BlackRock is an AA- rated company that is publicly traded with a market value of $158 billion. QTUM is a quantum computing ETF that is offered by Defiance, a privately held ETF company that was founded in 2018. Interestingly, Sylvia Jablonski, Defiance’s CEO & CIO, and the company’s chairman Matthew Bielski, came from a company that I often use as a cautionary tale of privately held fund companies: Direxion. The problems of Direxion can be summed up with a chart of Direxion’s 2X Bull Gold Miners’ Fund (NUGT) that speaks much louder than words. As you can see, this fund has lost investors a great deal of money even though gold prices are at all-time highs. The 2X Oil ETF chart of investor losses is very similar to NUGT. Both funds were 3X leveraged in Jan. of 2020, before the pandemic. For the sake of brevity, the most important lesson taught by this chart is that it matters who you purchase your funds from. Reliance, like Direxion before it, comes up with sexy names for their ETFs, such as QTUM (Reliance), DRIP and GUSH (Direxion Oil Bear and Bull ETFs). However, I would not trust my investing dollars with executives who had burned so many in the company they were responsible for just a few years ago. Ms. Jablonski was a managing director at Direxion from Nov. 2009 through Dec. 2020. Look for well-capitalized, creditworthy fund companies that have been in business through a few business cycles (more than 25 years). Bottom Line If we are invested in Google, Nvidia, Amazon, Microsoft or IBM, we are invested in the potential of quantum computing. These companies are found in large cap growth and breakthrough technology funds, such as iShares TECB. Consider having both in your diversified, age-appropriate wealth plan. While it is true that the innovation could come from a young hot company outside of these giants, the cost of the R&D makes smaller companies very vulnerable until there are monetizable applications. Remember the lessons from the Dot Com Crash. We did eventually shop online, with malls becoming empty, as was predicted, but not before the entire industry was decimated. Only the strong survived, after a lot of slog and struggle. The cash burn is highly prohibitive at this stage, which is one of the reasons why few fund companies are offering exposure to the quantum small caps, such as IONQ and Quantum Computing. It could be worth it to put some of the researchers mentioned in this blog, along with IONQ, QUBT and QBTS, on our radar and watch them for any breakthroughs. Innovation often comes from upstarts in garages. Let the VCs, who are trained to sort the pearls from the straw, take on the early stage, where most fail. There will be quantum opportunities for those of us who don’t get slaughtered in the first phase of creative destruction, which is a frequent bedfellow in innovation, to invest. Join us at our online Spring Financial Freedom Retreat April 25-27, 2025 (online) and our Stock Masterclass (learn the strategies that earned me the ranking of #1 stock picker) on May 3, 2025. If you'd like a life-changing adventure of a lifetime, be our guest at a royal manor house in Cornwall, England, March 12-19, 2027. Only nine rooms are available. Call 310-430-2397 or email [email protected] to learn more. Learn how to: * Invest in hot industries, such as Nvidia, artificial intelligence, and quantum computing, * Hedge against a weaker dollar, * Invest and compound your gains, * Green your retirement plan, * Easy and efficacious nest egg strategies, * Get hot and diversified (including in artificial intelligence and EVs), * Evaluate stocks, * Keep an age-appropriate amount safe, and, * Know what's safe in a Debt World. You'll even discover how to save thousands annually with smarter big-ticket choices. Yes, it's a complete money makeover. Email [email protected] or call 310-430-2397 to learn more and register. Learn the 15+ things you'll master and read testimonials in the flyer on the home page at NataliePace.com. Register with friends and family to receive the best price. "Ten minutes into the first day I was already much smarter about investing than I ever thought I would be in my life and I knew I was in exactly the right place at this retreat. I am amazed at how EASY and FUN it is to make my money work for me and those I love. I think this kind of information should be compulsory in schools. I wish I'd learned this sooner." CM If you’d like an unbiased 2nd opinion on your current wealth plan, email [email protected] for pricing and information. ![]() Join us for our Online Spring Financial Freedom Retreat April 25-27, 2025. Email [email protected] or call 310-430-2397 to learn more. Register by Jan. 31, 2025, to receive the best price and a complimentary 50-minute private prosperity coaching session (value $400). Click for testimonials, pricing, hours & details. ![]() Join us for our Restormel Royal Immersive Adventure Retreat. March 12-19, 2027. Email [email protected] to learn more. Click for testimonials, pricing, hours & details. Register now. There are only 9 rooms available. This retreat includes an all-access pass to all of our online training for a full year for two, and three 50-minute private, prosperity coaching sessions. Much more affordable than you might think. Email [email protected] to learn more. (2025 is sold out.) ![]() Natalie Wynne Pace is an Advocate for Sustainability, Financial Literacy & Women's Empowerment. Natalie is the bestselling author of The ABCs of Money and The Power of 8 Billion: It's Up to Us, and is the co-creator of the Earth Gratitude Project. She has been ranked as a No. 1 stock picker, above over 835 A-list pundits, by an independent tracking agency (TipsTraders). Her book The ABCs of Money remained at or near the #1 Investing Basics e-book on Amazon for over 3 years (in its vertical), with over 120,000 downloads and a mean 5-star ranking. The 6th edition of The ABCs of Money and the 2nd edition of Put Your Money Where Your Heart Is are the most recent releases of these books. Follow her on Instagram. Natalie Pace's easy as a pie chart nest egg strategies earned gains in the last two recessions and have outperformed the bull markets in between. That is why her Investor Educational Retreats, books and private coaching are enthusiastically recommended by Nobel Prize winning economist Gary S. Becker, TD AMERITRADE chairman Joe Moglia, Kay Koplovitz and many Main Street investors who have transformed their lives using her Thrive Budget and investing strategies. Click to view a video testimonial from Nilo Bolden. Check out Natalie Pace's Substack podcast on Apple and Spotify. Watch videoconferences and webinars on Youtube. Other Blogs of Interest Paper Losses. Another Warning About Long-Term Bonds! 2025 Investor IQ Test. 2025 Investor IQ Test Answers. Apple iPhone Sales Plunge in China. Indonesia: Rich in Nickel with Ambitions of Becoming an EV Battery Hub. RoboTaxis. AI. The Magnificent 7. Charitable Giving. Nonprofits that are Worthy of Supporting. The DJIA Plunged 1100 Points After the Dec. 2024 FOMC Meeting. Why Are So Many Safe Investments Losing Money? A Bargain-Priced AI Company. Canadian, Australian and U.S. Banks. Are Any of Them Safe? Ireland. Rich in Technology, Biotechnology and Agribusiness. Black Friday and Cyber Monday Sweepstakes. Robo Investing and AI. No, They are Not Foolproof. Stocks Soar as Nvidia Joins the DJIA. Copper. Peru ETF Outperforms the S&P500. 4 Ways to Celebrate World Sustainability Day, Oct. 30, 2024. Will There be a Santa Rally or will the Election Ruin Everything? The Chips are Down. ASML, Intel and Super Micro Computer Plunge. Is Nvidia Next. Will Insurance Companies & Homeowners Weather the Hurricanes? 9 Money Secrets of the Ultra Wealthy. Housing & Budgeting Solutions. Will Boeing Be Booted Out of the Dow Jones Industrial Average? Arkansas Sues Temu for Data Theft. We Must Be the Boss of Our Money. Why? Fast Fashion. Fossil Fuels. Plastic Clothing. Atacama Desert Waste Dumps. Can Crowdstrike Recover from its Colossal Catastrophe? Featuring a Cybersecurity Overview. Fintechs and Brokerages that Fail are Not FDIC-Insured. Stocks Keep Hitting New Highs. Are You Thinking "Capture Gains?" 5 Green Tips for Clean Beaches Week. So, You Think You Want to Be a B&B Owner... Retiring Soon? Start Planning Now. 2024 Rebalancing IQ Test. Answers to the 2024 Rebalancing IQ Test. May is National Bike Month. Paris and Amsterdam are the Stars. Vacations that Color Our World Forever. 9 Inflation, Budgeting, Debt Reduction and Investing Solutions. China & Russia Double Their Gold Holdings. 2024 Investment of the Year? Bitcoin Sets a New Record High. The Importance of Rebalancing. Uh. Oh. More Bank Trouble. Housing. Unaffordable. What Works? Case studies and creative solutions. The Underperforming DJIA, Full of Fossil Fuels and Forever Chemicals. The Best ROI* (Almost 40%!) & 7 Life Hacks That Save Thousands. Portugal Eliminates Tax Advantages for Ex-Pats. WeWork's Bankruptcy. Half-Empty Office Buildings. Problems in our Personal Wealth Plan. Cruise Ships Give Freebies to Investors. Should You Take the Bait? Should You Take a Cruise? Bonds. Banks. The Treacherous Landscape of Keeping Our Money Safe. 7 Rules of Investing 13 Lifestyle Choices to Reduce Waste, Pollution & CO2 & Save a Boatload of Dough. China Bans Apple 11-Point Green Checklist for Schools. 10 Wealth Secrets of Billionaires and Royals. Bank of America has $100 Billion in Bond Losses (on Paper) Fiat. Crypto. Gold. BRICS. Real Estate. Alternative Investments. BRICS Currency. Will the Dollar Become Extinct? Are There Any Safe, Green Banks? 7 Ways to Stash Your Cash Now. Lessons from the Silicon Valley Bank Failure. Which Countries Offer the Highest Yield for the Lowest Risk? Why We Are Underweighting Banks and the Financial Industry. Save Thousands Annually With Smarter Energy Choices Is Your FDIC-Insured Cash Really Safe? Money Market Funds, FDIC, SIPC: Are Any of Them Safe? My 24-Year-Old is Itching to Buy a Condo. Should I Help Him? The 12-Step Guide to Successful Investing. The Bank Bail-in Plan on Your Dime. Important Disclaimers Please note: Natalie Pace does not act or operate like a broker. She reports on financial news, and is one of the most trusted sources of financial literacy, education and forensic analysis in the world. Natalie Pace educates and informs individual investors to give investors a competitive edge in their personal decision-making. Any publicly traded companies or funds mentioned by Natalie Pace are not intended to be buy or sell recommendations. ALWAYS do your research and consult an experienced, reputable financial professional before buying or selling any security, and consider your long-term goals and strategies. Investors should NOT be all in on any asset class or individual stocks. Your retirement plan should reflect a diversified strategy, which has been designed with the assistance of a financial professional who is familiar with your goals, risk tolerance, tax needs and more. The "trading" portion of your portfolio should be a very small part of your investment strategy, and the amount of money you invest into individual companies should never be greater than your experience, wisdom, knowledge and patience. Information has been obtained from sources believed to be reliable. However, NataliePace.com does not warrant its completeness or accuracy. Opinions constitute our judgment as of the date of this publication and are subject to change without notice. This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument.
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AuthorNatalie Pace is the co-creator of the Earth Gratitude Project and the author of The Power of 8 Billion: It's Up to Us, The ABCs of Money, The ABCs of Money for College, The Gratitude Game and Put Your Money Where Your Heart Is. She is a repeat guest & speaker on national news shows and stages. She has been ranked the No. 1 stock picker, above over 830 A-list pundits, by an independent tracking agency, and has been saving homes and nest eggs since 1999. Archives
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