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Mad Hedge Fund Trader

Neuralink Will Change the World and Your Brain

Tech Letter

Founder of Tesla Elon Musk is on record confessing that it would be a “good idea” to bring his four businesses — Tesla, SpaceX, Neuralink, and The Boring Company — under a giant holding company.

Doing this would encourage more talented engineers to work for Musk and allow the four companies to combine human resources and marketing departments.

The synergies would be countless.

Most of you know three of the four, so let me explain to you about Neuralink.

In short, Neuralink Corporation is an American neurotechnology company developing implantable brain-machine interfaces.

You would think this is straight out of science fiction, but mark my word that in our lifetime, we could all be operating digital devices from our heads if Musk gets his way.

And he often does get his way.

Scary as it seems now, this will probably be the first of many artificial intelligence procedures to infuse humans with layers of artificial intelligence.

Musk believes humans will go the way of robot hybrid in the future because the natural development of competition is trending in that way and sadly, this direction in humanity is ultimately existential for every one of us.

Improvements in technology will periodically be announced and iterations will need to be adopted because software is upgraded.

Fortunately, we are nowhere close to the actual implementation of these neuro devices let alone trying to analyze the consumer and economic implications of this technology.

As for today and now, we are in the early innings and testing it out on pigs.

Better them and not me.

Neuralink’s dramatically simplified design for an implant that hopes to create brain-to-machine interfaces is a big deal and partly because of the star power backing the project that can literally move mountains.

The previous design consisted of a bean-shaped device that would sit behind the ear, but now it is the size of a large coin, and it goes in your skull.

I expect the final iteration to be a millimeter wide.

The in-brain device could enable humans with neurological conditions to control technology, such as phones or computers, with mere thoughts.

The other use case is solving neurological disorders from memory, hearing loss, and blindness to paralysis, depression, and brain damage which is a tad more altruistic.

The current prototype – referred to as version 0.9 – measures 23 millimeters by eight millimeters, and has 1024 electrode "threads" attached to it that are implanted into the brain.

It is designed to replace a coin-sized portion of the skull and sit flush so it would be physically unnoticeable. It would be inductively charged the same way you would wirelessly charge a smartwatch or a phone.

The surgical robot, which is programmed to insert the neural threads safely into the brain, was done by US design company Woke Studios.

Woke Studio’s robot would be able to insert the link in under an hour without general anesthesia, with the patient able to leave the hospital right away.

The robot will eventually do the entire surgery – so everything from the incision, removing the skull, inserting electrodes, placing the device, and then closing things up.

It will be completely automated.

Test pigs are being used to test the device which offers important insights into the process of inserting a chip into a brain.

The implant sends real-time signals from the pig’s brain whenever it touches something with its snout.

Described as "healthy and happy", one of the pigs demonstrated that it is possible to have multiple chips in your head at one time.

Musk also showed a pig that previously had a chip inserted into its brain, but had since been removed, to show that the procedure is reversible without any serious side effects.

Neuralink’s Breakthrough Device designation by FDA supports Musk’s neuroscience objectives. The startup is now preparing for its first human test case, pending required approvals, and further safety testing.

If this technology is green-lighted by the U.S. Federal Government, I envision a free for all into this technology from the likes of Facebook, Google, Apple, and Microsoft, and so on.

If you thought website “cookie tracking” is bad now, then once tech firms are granted access to consumers’ brains, it could open up a pandora's box of moral conflicts of interest, an avalanche of revenue opportunities, and lawsuits galore.

Look at the hesitation and disgruntlement of the health industry hoping to convince Americans to take two jabs of an mRNA vaccine in the arm and now think about trying to convince Americans to implant a brain in their head for the sake of competing.

Will American society really get to the point where Facebook is selling your “thoughts” to neural advertisers?

It’s scary to think about but that is the direction we are headed down for better or worse.

If you view this through the lens of big tech, battering down the hatches to get access to consumer’s “thoughts” is the holy grail of access points and revenue flow.

In 2021, humans still need to digest thoughts and carry out functions through fingers into a phone interface.

We have also allowed big tech into our home feeding them data through smart devices and virtual assistants like Amazon Alexa.

Getting rid of all that “fluff” and extracting data and behavioral results from the original source is potentially worth over 10 trillion dollars along with a recurring revenue source to infinity.

Not only will physical devices be useless at that point, but they will also spawn a mega cloud storage business that is hooked straight to the mind.

An economic analyst can digest how cloud companies like Amazon and Google would rake in the trillions by storing libraries of data that a mind can tap in at any time.

It really is a gigantic step that will digitize and computerize humans - big tech is first in line to reap the profits and literally control our brains.

Maybe by that time, the government will actually lift a finger and regulate since the current crop of Baby Boomers still have no idea what Facebook does and have been turning a blind eye.

This is the future – a future where we coexist with artificial intelligence.

 

neuralink

 

neuralink

https://www.madhedgefundtrader.com/wp-content/uploads/2020/12/neuralink-architecture.png 492 832 Mad Hedge Fund Trader https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png Mad Hedge Fund Trader2021-07-23 14:02:412021-08-01 02:54:29Neuralink Will Change the World and Your Brain
Mad Hedge Fund Trader

July 23, 2021 - Quote of the Day

Tech Letter

“When something is important enough, you do it even if the odds are not in your favor.” – Said Founder and CEO of Tesla and Neuralink Elon Musk

https://www.madhedgefundtrader.com/wp-content/uploads/2021/07/elon-musk.png 516 446 Mad Hedge Fund Trader https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png Mad Hedge Fund Trader2021-07-23 14:00:352021-07-23 16:12:23July 23, 2021 - Quote of the Day
Mad Hedge Fund Trader

July 21, 2021

Tech Letter

Mad Hedge Technology Letter
July 21, 2021
Fiat Lux

Featured Trade:

(THE TRUTH ABOUT AUTOMATION AND WALL STREET JOBS)
(AAPL), (SQ), (AMZN), (PYPL)

https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png 0 0 Mad Hedge Fund Trader https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png Mad Hedge Fund Trader2021-07-21 14:04:362021-07-21 16:25:46July 21, 2021
Mad Hedge Fund Trader

July 19, 2021

Tech Letter

Mad Hedge Technology Letter
July 19, 2021
Fiat Lux

Featured Trade:

(THE LARGEST SHADOW BANKER AND U.S. TECH)
(BLK), (AMZN), (MSFT), (AAPL)

https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png 0 0 Mad Hedge Fund Trader https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png Mad Hedge Fund Trader2021-07-19 13:05:282021-07-19 16:11:34July 19, 2021
Mad Hedge Fund Trader

The Largest Shadow Banker and U.S. Tech

Tech Letter

In the top-heavy global media landscape, there seems to be this notion that the U.S. and its capital is the primary alpha male swaying asset prices.

The close to $6 trillion in recent stimulus chasing too few services demonstrably has an outsized vote on the matter of asset pricing.

But the dirty little secret about this stimulus is that U.S. private equity is spilling into Nordic and Western European markets effectively forcing a rapid Americanization of asset prices across the Atlantic.

Shadow banks finance financial transactions that are too risky for banks.

In the US, they already grant half of all loans.

In times of low or even negative interest rates for credit, fewer and fewer investors bring their money to a normal bank, but rather to a so-called shadow bank.

This is a term that has become established to describe a phenomenon for financial participants who are not a bank.

What a shadow bank is is not exactly defined, because there are no shadow banking licenses; but tech companies and the U.S. wielding of this critical function have changed the financial world.  

In some cases, a few large private families who now have the means to invest in such funds are also focused on funding through these shadow banks and most of the time to buy American tech stocks.

And they deliberately invest not just in a single fund, but across all countries in the world, and shadow banks make up around a third of the financial sector.

In Germany, it is more than a third and on the EU average, it is almost exactly a third.

Pension funds and pension funds work like small insurance companies: employees of a company pay part of their gross wages directly, free of tax and social security contributions. At the end of their working life, they will then be paid a supplementary pension from the income generated.

The fact that “their” money is mandated to be invested in the global financial markets - at least if people hope to receive a pension after their active working life.

These European pension funds are also turning to U.S. branded shadow banking.

According to the Financial Stability Board, shadow banks had a total of $80 trillion in business in 2021.

Compared to the previous year, this was an increase of 8.5%. The FSB information is based on data from 29 countries. These in turn represent 80% of global economic output.

Many deals and transactions are outsourced from the banks now. That means: The financial business tries to circumvent the regulations and the largest shadow bank is BlackRock (BLK) - involved in 20,000 companies.

Many of these outsourced financial service providers are also nothing more than subsidiaries of BlackRock.

This outsourcing offers their customers the prospect of significantly higher interest rates.

BlackRock is an influential major shareholder in all listed global corporations from Europe and the USA.

Although it was founded in 1988, BlackRock was unknown to most people in Germany for decades.

That only changed in 2018, when the politician and lobbyist Friedrich Merz announced his candidacy for the CDU party chairmanship.

At this point in time, Friedrich Merz had been head of the supervisory board of the German offshoot of BlackRock for two years.

This is a company that currently manages a fortune of over nine trillion dollars which is far more than what is produced in Germany, every year, in terms of goods and services - considerably more.

At BlackRock, they harness the smorgasbord of mechanisms that define this new area of ​​shadow banking: hedge funds, VC, real estate, index funds, and money market funds.

BlackRock holds considerable blocks of shares through various subsidiaries, including in normal commercial banks - such as Bank of America, Citigroup, and Deutsche Bank.

But that’s not all.

BlackRock is by far the largest owner in the German share index - with a share of 15 to 17%.

That means: every sixth share of the 30 largest German corporations is controlled by one of the BlackRock funds.

That BlackRock's ownership structure rotates in circles. The asset management companies control themselves, or are actually not subject to any control.

It’s an almost incestuous system where you pursue your own interests through a network of participation. While banks are systemically relevant, BlackRock is still uncontrolled, and they refuse to classify this company as systemically relevant.

But that is BlackRock and that is part of what made them highly successful.

It is extremely well connected. It has long-standing, important politicians in its ranks. Friedrich Merz is just one example in the big picture.

French President Emmanuel Macron recently said he wanted to see the creation of at least 10 tech companies in Europe worth over 100 billion euros each by 2030.

While Europe is now home to many unicorns — start-ups valued at over $1 billion — it is yet to produce a company with the scale of American and Chinese tech giants.

But I am ready to argue that Europeans no longer have control over their own narrative in their own financial system, it is now U.S. private equity.

Assuming that this holds true, even if President Macron’s wish bears fruit, the owners of these “European” tech companies will of course be Americans who are dressed up as European pension funds and maybe even perhaps somehow a company starting with a B and ending with ROCK?

The oversupply of capital from the U.S. that has overcharged U.S. tech shares will get any piece of the action that Europe creates if they are to create a tech renaissance, which I highly doubt.

And the real truth is that any unicorn created in Europe will most likely go public in New York anyway.

The pandemic has also supercharged the influence of Blackrock in Germany and Europe as a whole and that cannot be diminished.

According to Blackrock’s 13F, 10% of their portfolio is Apple (AAPL), Microsoft (MSFT), and Amazon (AMZN) - holding $128 billion in AAPL, $123 billion in MSFT, and only $87 billion in AMZN.

Their largest 7 holdings are in U.S. tech stocks.

This is just a 13F in their main fund, and it wouldn’t be shocking to find out some of their European subsidiaries are also doing the same thing even if not with the same amount of capital.

The European financial system has effectively been gamed by Blackrock and its copycats, so next time you hear of a large Nordic or German equity fund making a big splash in U.S. tech shares, the eventual originator of that decision could be Blackrock.

This is the type of sophistication we are dealing with at this point in global markets and essentially nothing beats the eye test anymore because we have no idea what is happening unless we follow the trail of money.

 

blackrock

 

blackrock

 

 

https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png 0 0 Mad Hedge Fund Trader https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png Mad Hedge Fund Trader2021-07-19 13:02:282021-07-27 21:01:15The Largest Shadow Banker and U.S. Tech
Mad Hedge Fund Trader

July 19, 2021 - Quote of the Day

Tech Letter

“If GM had kept up with technology like the computer industry has, we would all be driving $25 cars that got 1,000 MPG.” – Said Co-Founder of Microsoft Bill Gates

https://www.madhedgefundtrader.com/wp-content/uploads/2021/07/bill-gates-1.png 498 380 Mad Hedge Fund Trader https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png Mad Hedge Fund Trader2021-07-19 13:00:242021-07-19 16:10:18July 19, 2021 - Quote of the Day
Mad Hedge Fund Trader

July 16, 2021

Tech Letter

Mad Hedge Technology Letter
July 16, 2021
Fiat Lux

Featured Trade:

(THE CLOUD)
(AMZN), (GOOGL), (CRM)

https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png 0 0 Mad Hedge Fund Trader https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png Mad Hedge Fund Trader2021-07-16 14:04:012021-07-16 16:04:14July 16, 2021
Mad Hedge Fund Trader

The Cloud

Tech Letter

Dealing with the Cloud works and for every relevant tech company, this division serves as the pipeline to the CEO position.

If that’s not the case, then there’s something egregiously wrong!

Take Andy Jassy, the mastermind behind Amazon’s lucrative cloud computing division, and is the man who will succeed company founder Jeff Bezos.

He’s been rewarded this important business based on his performance in the cloud and faces a daunting proposition of following Bezos as CEO.  

Bezos incorporated Amazon exactly 27 years ago.

Jassy developed a highly profitable and market-leading business, Amazon Web Services, that runs data centers serving a wide range of corporate computing needs.

Can you believe that Amazon's stock started out at $1.50 per share when adjusting for future equity splits?

It now trades at more than $3,500 per share and is worth over $1.8 trillion, making it one of the most valuable companies in the world.

Amazon's annual profit almost doubled in 2020 to $21.3 billion stoked by the pandemic that forced people to stay home and use Amazon services.

Consumers had no choice but to shop online, helping the company grow revenue 38% to $386.1 billion.

What exactly is the cloud that Amazon created?

Cloud 101

If you've been living under a rock the past few years, the cloud phenomenon hasn't passed you by and you still have time to cash in.

You want to hitch your wagon to cloud-based investments in any way, shape, or form.

Amazon leads the cloud industry it created.

It still maintains more than 30% of the cloud market. Microsoft would need to gain a lot of ground to even come close to this jewel of a business.

Amazon (AMZN) relies on AWS to underpin the rest of its businesses and that is why AWS contributes most of Amazon's total operating income.

Total revenue for just the AWS division would operate as a healthy stand-alone tech company if need be.

The future is about the cloud.

These days, the average investor probably hears about the cloud a dozen times a day.

If you work in Silicon Valley, you can quadruple that figure.

So, before we get deep into the weeds with this letter on cloud services, cloud fundamentals, cloud plays, and cloud Trade Alerts, let's get into the basics of what the cloud actually is.

Think of this as a cloud primer.

It's important to understand the cloud, both its strengths and limitations.

Giant companies that have it figured out, such as Salesforce (CRM) and Zscaler (ZS), are some of the fastest-growing companies in the world.

Understand the cloud and you will readily identify its bottlenecks and bulges that can lead to extreme investment opportunities. And that is where I come in.

Cloud storage refers to the online space where you can store data. It resides across multiple remote servers housed inside massive data centers all over the country, some as large as football fields, often in rural areas where land, labor, and electricity are cheap.

They are built using virtualization technology, which means that storage space spans across many different servers and multiple locations. If this sounds crazy, remember that the original Department of Defense packet-switching design was intended to make the system atomic bomb-proof.

As a user, you can access any single server at any one time anywhere in the world. These servers are owned, maintained, and operated by giant third-party companies such as Amazon, Microsoft, and Alphabet (GOOGL), which may or may not charge a fee for using them.

The most important features of cloud storage are:

1) It is a service provided by an external provider.

2) All data is stored outside your computer residing inside an in-house network.

3) A simple Internet connection will allow you to access your data at any time from anywhere.

4) Because of all these features, sharing data with others is vastly easier, and you can even work with multiple people online at the same time, making it the perfect, collaborative vehicle for our globalized world.

Once you start using the cloud to store a company's data, the benefits are many.

No Maintenance

Many companies, regardless of their size, prefer to store data inside in-house servers and data centers.

However, these require constant 24-hour-a-day maintenance, so the company has to employ a large in-house IT staff to manage them - a costly proposition.

Thanks to cloud storage, businesses can save costs on maintenance since their servers are now the headache of third-party providers.

Instead, they can focus resources on the core aspects of their business where they can add the most value, without worrying about managing IT staff of prima donnas.

Greater Flexibility

Today's employees want to have a better work/life balance and this goal can be best achieved by letting them working remotely which effectively happened because of the public health situation. Increasingly, workers are bending their jobs to fit their lifestyles, and that is certainly the case here at Mad Hedge Fund Trader.

How else can I send off a Trade Alert while hanging from the face of a Swiss Alp?

Cloud storage services, such as Google Drive, offer exactly this kind of flexibility for employees.

With data stored online, it's easy for employees to log into a cloud portal, work on the data they need to, and then log off when they're done. This way a single project can be worked on by a global team, the work handed off from time zone to time zone until it's done.

It also makes them work more efficiently, saving money for penny-pinching entrepreneurs.

Better Collaboration and Communication

In today's business environment, it's common practice for employees to collaborate and communicate with co-workers located around the world.

For example, they may have to work on the same client proposal together or provide feedback on training documents. Cloud-based tools from DocuSign, Dropbox, and Google Drive make collaboration and document management a piece of cake.

These products, which all offer free entry-level versions, allow users to access the latest versions of any document so they can stay on top of real-time changes which can help businesses to better manage workflow, regardless of geographical location.

Data Protection

Another important reason to move to the cloud is for better protection of your data, especially in the event of a natural disaster. Hurricane Sandy wreaked havoc on local data centers in New York City, forcing many websites to shut down their operations for days.

And we haven’t talked about the recent ransomware attacks by Eastern Europeans on energy company Colonial Pipeline and meat producer JBS Foods.

The cloud simply routes traffic around problem areas as if, yes, they have just been destroyed by a nuclear attack.

It's best to move data to the cloud, to avoid such disruptions because there your data will be stored in multiple locations.

This redundancy makes it so that even if one area is affected, your operations don't have to capitulate, and data remains accessible no matter what happens. It's a system called deduplication.

Lower Overhead

The cloud can save businesses a lot of money.

By outsourcing data storage to cloud providers, businesses save on capital and maintenance costs, money that in turn can be used to expand the business. Setting up an in-house data center requires tens of thousands of dollars in investment, and that's not to mention the maintenance costs it carries.

Plus, considering the security, reduced lag, up-time and controlled environments that providers such as Amazon's AWS have, creating an in-house data center seems about as contemporary as a buggy whip, a corset, or a Model T.

Now you might digest somewhat how Amazon built their share price from $1.50 in 1997 to over $3,500 today.

Thanks to the cloud.

 

the cloud

 

the cloud

 

https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png 0 0 Mad Hedge Fund Trader https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png Mad Hedge Fund Trader2021-07-16 14:02:562021-07-25 20:16:27The Cloud
Mad Hedge Fund Trader

July 16, 2021 - Quote of the Day

Tech Letter

“Life is not fair; get used to it.” - Said the Founder of Microsoft Bill Gates

https://www.madhedgefundtrader.com/wp-content/uploads/2021/07/bill-gates.png 616 464 Mad Hedge Fund Trader https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png Mad Hedge Fund Trader2021-07-16 14:00:522021-07-16 16:02:51July 16, 2021 - Quote of the Day
Mad Hedge Fund Trader

July 14, 2021

Tech Letter

Mad Hedge Technology Letter
July 14, 2021
Fiat Lux

Featured Trade:

(WHAT’S THE DEAL WITH MEME MANIA?)
(GME), (AMC), (WISH), (CLOV), (BB)

https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png 0 0 Mad Hedge Fund Trader https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png Mad Hedge Fund Trader2021-07-14 14:04:452021-07-14 16:54:54July 14, 2021
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