Stocks & Equities
- Flying taxis could gain major attention in 2022, with even more aviation start-ups set to go public.
- While it is unlikely that we will see them in action before 2024, the infrastructure for and investment in this burgeoning tech could really ramp up this year.
- Major companies including American Airlines and Microsoft are already interested in vertical take-off and landing aircraft.
In 2021 we saw the electric vehicle (EV) boom, with a plethora of automakers releasing their own version of the EV, both for personal and commercial use, in a bid to knock Tesla off the throne. We also saw billionaires enter the world of space travel, making it that bit more accessible for non-astronauts. So, what’s in store for 2022? According to several media sources, we can expect to see flying taxis as Vertical Aerospace goes public on the New York stock exchange, the latest of several aviation start-ups to do so.
There has long been speculation over the potential for flying taxis. Although an earlier prediction suggesting the technology could come into action in 2022 was slightly ambitious, with the current goal set for late 2024. The CEO of Vertical Aerospace, British energy entrepreneur and former Formula 1 racing team owner, Stephen Fitzpatrick, took the company public in December. This follows its merger with Broadstone Acquisition Corp.
The special purpose acquisition company (SPAC)-IPO merger is valued at around $2.2 billion. And the chairman of Broadstone, Hugh Osmond, stated, “Vertical Aerospace is at the forefront of electric aviation, a fast-growing sector that will dramatically reimagine the entire aviation market. With the endorsement of key partners, suppliers, and investors we are confident that our partnership with Stephen and Vertical’s gifted team of innovators will disrupt transportation over the next decade to come.”…read more.
Even at the best of times, it’s human nature to want to decode the future.
During times of uncertainty though, we’re even more eager to predict what’s to come. To satisfy this demand, thousands of prognosticators share their views publicly as one year closes and another begins. In hindsight, we see varying levels of success at predicting the future.
In truth, experts are merely guessing at what will happen over the coming year. In 2020, almost nobody had a pandemic on their bingo card. In 2021, NFTs completely flew under the radar of experts, and nobody saw a container ship get lodged in the Suez Canal in their crystal ball.
So, why should we pay any attention to predictions at all? Are they, as Barry Ritholtz says, “wrong, random, or worse”?
For one, these guesses are backed by expertise and experience, so the accompanying analysis is informative. Perhaps more importantly though, influential people and companies are in a position to shape the future with their predictions. In some cases, sentiment and actions can turn a prediction into a self-fulfilling prophecy…read more.
As Beijing struggles with the worsening outbreak in Xi’an, the provincial capital of 13M that has been under lockdown for about 2 weeks now, authorities are finding it increasingly difficult to paper over the popular outcry. So, authorities in the northern Chinese city have banned “negative news” on social media as many residents took to Weibo and other platforms to complain about their present circumstances.
The citywide lockdown, believed to be the most brutal since the original Spring 2020 lockdown in Wuhan, has left many stranded at home without enough food, and without access to medical treatment. Unfortunately, they’ll need to keep their complaints private if they want to avoid angering the powers that be.
“From Jan. 4, people are banned from posting details of the pandemic restrictions or information about the road situation, videos, links, mini-apps or photos of the situation, particularly negative news,” the municipal government said in a mass text message to the city’s 13M residents. “There is background surveillance operating on all WeChat groups, and any negative news will be deleted as soon as it is sent,” the message said. “Please bear this in mind and pass the message on.”
Radio Free Asia reports that the message was triggered by a wave of public dissatisfaction and online complaints as people have been prevented from leaving their homes to buy groceries and basic necessities.
Just like in Wuhan, many have been turned away from hospitals for medical treatment because they come from high or medium-risk areas.
Instead of allowing complaints to fill up social media platforms, the local government in Xi’an is running a high-profile propaganda campaign to remind people of the efforts underway to bring shipments of fresh food to beleaguered residents…read more.
The $3-trillion EV market needs batteries that are 20-30% graphite–a material the U.S. currently doesn’t produce at all.
That makes graphite a matter of national security in the global energy race.
Each EV battery requires not only lithium–a metal that investors are very interested in–but even more graphite, the metal that prevents the lithium batteries from breaking down.
Yet, the U.S. hasn’t produced any graphite for decades.
Now, with the EV market starting to explode, and automakers and battery manufacturers expected to consume far more than ever, we’re looking at a nightmarish graphite supply chain that is mostly dependent on China–but not necessarily on the Chinese.
Currently, China is one of the few countries with graphite processing facilities, but one of the leading producers in the world is an international company with both a North American technology and production arm and wholly owned Chinese subsidiaries and expert team operating since 2008. And it’s parked right next to the largest graphite mine in the world, in China allowing it to secure this critical supply today while growing with the explosive demand of tomorrow…read more.
Hedge fund manager Ray Dalio remains bullish on Bitcoin (BTC) in 2022, listing three primary reasons why Bitcoin is “impressive.” In a recent interview with The Investors Podcast, he talked up gold and BTC as an inflation hedge.
When prompted by interviewer William Green about what a sensible allocation for a layperson would be, Dalio said that he agrees with fellow billionaire Bill Miller’s suggestion that 1%–2% is the right allocation.
He explained that the network has never been hacked; it has no better competitor; and BTC adoption rates would suggest that it could further chip away at gold’s market capitalization:
“Bitcoin now is worth about $1 trillion, whereas gold that is not held by central banks and not used for jewelry is worth about $5 trillion. When I look at that, I keep that in mind because I think, over time, inflation hedge assets are probably likely to do better.”…read more.
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