Imagine if fighter jets could shoot down enemy targets with high-powered lasers.

That is now closer to reality. Recently, the Air Force Research Laboratory awarded a $26 million contract to Lockheed Martin (LMT) for a laser system small enough to mount on future fighter jets.

It’s cool tech … and a potential goldmine for investors in stocks tied to lasers.

Lockheed, and other defense contractors, have been working on powerful lasers for a long time. In June, the U.S. Army test-fired a laser weapon from an Apache helicopter.

In other recent military tests, Lockheed used a laser to melt a pickup truck enginefrom a mile way. And a laser successfully shot down four drones at the White Sands Missile Range in New Mexico.

The technology works, and it is instantaneous.

The Laser Advancement for Next-generation Compact Environments project will build on that technology. LANCE pushes the boundaries of what engineers thought was possible.

It’s one thing to mount a laser on a ground vehicle, a ship or even a helicopter, which can hover for stability. But it’s a real challenge to attach a 60-KW-class laser to a $160 million tactical jet carrying 18,500 pounds of jet fuel.

The laser weapon generates a beam of light so intense that Lockheed compares it to a stream of unlimited bullets moving at the speed of light.

This stream is almost invisible to the human eye. But don’t underestimate it. It can destroy small rockets, missiles, drones and other targets that are more than a mile away.

The system uses fiber-optic lasers and sophisticated beam control. As power levels increase, Lockheed claims the lasers will eventually knock out bigger targets at longer ranges.

That is the opportunity for investors.

A New Era of Invention

Most portfolios should have some exposure to defense contractors. These companies are very often at the cutting edge of technologies. Having a client with ultra-deep pockets helps. It defrays costs. And it’s good for shareholders, too.

However, laser development, for this application, is next-level research. It’s the kind of thing that will not happen without the contribution of smaller, nimbler laser technology firms.

A decade ago, it was the kind of thing that seemed impossible. But this is a new era of invention. The exponential growth of information technology is bringing elusive scientific breakthroughs into the realm of possibility. Laser development is no exception.

There are several ways for investors to get involved …

One company has been supplying engineered materials and opto-electronic components since the 1970s. While it’s not a household name, the defense sector actively seeks out its systems for laser designation, missile warning, targeting and navigation. Its five-year sales growth is in the middle teens, and guidance is upbeat. It has been a spectacular winner for investors.

Another company makes laser diodes and measurement equipment. It also holds the distinction of being the largest commercial laser company in the world. Its machines are the gold standard in robotic welders. However, its position in markers, cutters and intellectual property make it indispensable for the next generation of laser development. After surging 400% since 2016, the stock is consolidating, getting ready for the next leg higher.

Another company is a pure instruments play. It provides solutions that monitor and analyze critical parts of the manufacturing process. Founded in the 1960s, the company has key competencies in optics, photonics and lasers. It has also won many key contracts during the last two years. While the stock has tripled during that time, the outlook remains very strong.

These are the types of opportunities I share with my Pivotal Point Trader subscribers. They own a big defense name that’s up almost 20% as of this writing. And we have a laser-like focus on several other best-in-class names that are throwing off nice gains today while they work on the products and services of tomorrow. Click here to learn more.

The world is a very dangerous place. Small rockets, and even unmanned drones, are now cheap enough for our enemies to procure and deploy. Lasers mounted on fighter jets would neutralize those weapons.

Happily, there is also a way for investors to benefit besides the benefit of repelling enemy attacks.

Best wishes,

Jon Markman

The Loonie is tumbling and Canadian bonds rallying as the Bank of Canada backs away from its rate hiking plans in ‘surprise’ over the slowing Canadian economy.

Meanwhile, a new report from the National Energy Board brings good news for the planet (that is bad for Canadian GDP in the short and medium run). See: Canada’s demand for fossil fuels will max out in 2 years: NEB

The National Energy Board says Canada’s addiction to fossil fuels will peak in two years…The board’s annual energy futures report for the first time says with climate change policies and growth in clean energy, Canada’s consumption of fossil fuels to run cars and heat homes will max out before 2020, start to decline slightly and then flatline over the next two decades. Here is a direct video link.

At the same time, the NEB says it thinks (hopes) that falling domestic oil demand will be offset by increasing oil exports, and thus not hurt Canadian GDP. This is unlikely.

In reality, it’s not just domestic demand that will peak much sooner than previously estimated. The trend towards higher efficiency, renewable energy, and electric transportation, is global and only just getting started. In addition, new oil production technologies are enabling increased supply in most countries, including our historical oil export buyers.

Canada and other countries need to transition to products and services needed for the next phase of human evolution. We can, but to do so we will have to let go of status quo thinking and a fixation with sunk costs and antiquated business models.

This day was always coming, but unfortunately, Canada is woefully unprepared for the drop in income and the capital investment intensification needed.

….continue reading HERE

“We are currently standing before one of the most unique and frightening periods in history. Never have there been so many extremes in so many different areas. In the last 100 years everything seems to have grown and intensified much faster, including population, technology, inflation, debt, money printing, budget deficits, stocks, bonds, property prices. crypto currencies etc. All of these areas are now in an exponential growth phase.

The final stage of exponential growth is explosive and looks like a spike that goes straight up. A spike for a major sample like global population or the Dow never finishes with just a sideways move. Once a spike move has finished, it always results in a spike move down.”

….read more HERE

also from KingWorldNews:

China’s Bold Moves – The Implications For Investors Are Enormous

The following is a summary of our recent Big Picture podcast, “The Meltup Before the Meltdown,” which can be accessed on our site here or on iTunes here.

We’re likely near the end of this business cycle, says Financial Sense’s Jim Puplava, and normally when we come to the end, all seems well: the economy is booming, stocks are hitting records, and people are making money.

For example, think back to the stock market in 1999 and the first 3 months of 2000. The Nasdaq went vertical in a classic, melt-up euphoria as everyone piled into the sector driving the “New Economy”.

As we move closer to the top of this market, we’re more likely to see euphoria, he added. Right now, mutual funds and stocks are going up by double digits. Unemployment is low, consumer confidence is high, retail sales are up, and the economy is booming. All of these indicators normally occur around the end of the cycle, and we know what eventually triggers that end: a Fed rate raising cycle, which we are now in.

Good Times May Trigger the Shift

We’re seeing PMIs appear to be very strong, especially the ISM Manufacturing and Non Manufacturing Indexes, Puplava noted. In September, the ISM Manufacturing hit its highest level in 13 years.

“Despite the weather we had with those hurricanes toward the end of August and September, we could see a GDP print eventually at 3 percent for Q3,” he said. “The economic numbers have been picking up.”

…..continue reading HERE

….also from Financial Sense:

Great Expectations – Stock Market Breaks 2017 Pattern in Strong Pre-Earnings Rally