5 Long-Term Trends You Should Be Invested In

Stocks: As with most technology companies, the big names in e-commerce are overvalued. But Groupon’s (GRPN - Free Report) valuation looks reasonable at the moment. If you’re willing to wait for the right time for exposure to China, Alibaba (BABA) is the best choice. JD.com (JD - Free Report) or Autohome (ATHM) also doing good but you may want to wait for a more reasonable valuation to jump in. Another stock worth looking at is Cars.com (CARS) because like ATHM, it leverages a growing trend of people buying cars online.

Automotive ownership moving toward EVs

The main factors standing in the way of broader adoption of EVs are the cost and President Trump’s negative stance on environmental protection and sustainable transport.

But materials science is moving forward to make batteries lighter, faster, cheaper, safer and easier to charge. China has taken the lead in the first round, with its NMC 811 (that’s nickel-manganese-cobalt in the proportion of 8:1:1) batteries and South Korea is also moving in the same direction. Tesla is expected to have an 811 version by year-end. While increasing the proportion of nickel improves performance, there’s also increased risk of fires. Moreover, cobalt is relatively rare and expensive. Most of the materials research in the U.S. currently done by American universities but the evolution of the battery will take several years. Adjusting NMC proportions will in the meantime allow for some cost reduction and facilitate adoption.

Meanwhile, the American Energy Innovation Act (introduced in the Senate) and the Climate Leadership and Environmental Action for Our Nation's Future Act (introduced in the house) this year, are leading to the encouraging possibility of government funding for advanced vehicle development and manufacturing. Technology thus developed can be licensed broadly to all industry players, which will drive the dynamics for quicker EV adoption.

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