Visualization and virtualization aptly describe a number of factors as we enter the New Year. And it applies to what one visualizes as well as what a 'hands-on' approach will deliver, whether it comes to stock markets; always in the case of technology (the Consumer Electronics Show starts now), and in this very political transformation year 2017; the visuals many fear or really can hardly wait to embrace, will decidedly depart not from the spirit but from the specifics those who have constructed 'virtual' models for anticipate.

Clearly so much is still pending politically; though increasingly we're seeing a glimmer of this movement closer to the center, which I have hoped for in a Trump Administration; because it's not merely about a candidate for me with the caveat that he behave in a balanced way (so far we see that), but that a new transformation really visualizes the basic return to decent principles so many 'think' were advocated by others, but actually deteriorated over time. Or it could be said that political platitudes mean less than having prosperity; a feeling of optimism about achieving the 'American Dream', or something of a type that combines altruism with pragmatic goals citizens feel attainable.

For the economy; that means the 'virtual reality' Trump has presented really needs to materialize over time, which is what the projected market rally has anticipated. Now a correction can be correlated with 'realization' that virtual goals are just that until they are at least visible on the horizon by proposal to Congress; then enactment, and finally implementation to get things going. In that sense the market is anticipating that today's 'virtual reality' is tomorrow's actual reality; with more industry; better higher-wage jobs; and lower taxes; along with repatriation of so much manufacturing and money that increases in the tax-base of America occur significantly from that probable new course the Nation is setting-out on.
 

That takes us to the utopian (for now) visions of today's technology focus at CES, which increasingly has drifted away from computers, and the latest or greatest in flat-panel televisions, to the often-controversial varying methods of what's increasingly becoming 'assisted' or eventually fully-autonomous (a class-action or several waiting to happen before this is perfected perhaps) driving systems. Whether these are included in combustion engine vehicles, or increasingly hybrids, with fully-electric models; all will grow prominently in the years ahead.

For the stock market so far this has been a discussion mostly of full-electric vehicles; though personally I suspect the degree of competition ultimately is not just going to sort this out, but bring price-points so low from some of the manufacturers; that long-range and high-cost won't be synonymous.

Many investors will find that 'betting' on any single company (like Tesla as is or was the rage) will be dicey; because there is no doubt that the big players are hurriedly rushing to offer a mix of all the power-train variants I noted. As a for-instance (and realizing some are hybrids while others are 'just' electric) markets and consumers will pit Tesla against General Motors (Volt and Bolt to start with); and even Ford, which quietly has offered well-regarded hybrid vehicles you don't hear much about (including in the Lincoln line).

So this won't be just clearly obvious competitors like BMW (I-3 and more; of course the I-8 being a tour-De-force I reviewed from the factory in Munich a few years ago when I examined the production prototype; or later actually evaluated the production model; but decided the ergonomics were not fully refined yet; such as the doors without soft-raising or lowering features more or less the idea Tesla implemented).. but also Mercedes-Benz, which will have a full line-up on the way. Then the ubiquitous Toyota family, which was on the hybrid scene early and now combines that with a few vehicles with a degree of 'driver assist' as standard equipment.

In 2017 most of the major vehicle companies (in their combustion powered models) provide basic pre-safe braking and blindspot indicators as standard while some (Infinity, Mercedes, Audi or others) still for inexplicable reasons (profit) require inclusion in a 'Technology or Driver Assist Package'. All that makes it confusing for customers; especially when (Mercedes especially) a company doesn't keep the 'package features' consistent across models. In a sense that a Honda, Accord, or Elantra would offer the basics 'standard' has a way of suggesting that the 'premium' companies are behind the pace just a bit in grasping what consumers expect these days. Last year I wrote about Apple CarPlay and Android Auto; typically appearing together either with an improved technology 'package' or simply standard on several models.

GM was at the forefront of this generally well-regarded linkage between the mobile phone and the car's 'infotainment' system (and Navigation screens of course); with the forward-thinking knowing that this becomes the only legal way for hands-free calls and texting (Siri for instance reads and sends your messages without taking your eyes off the road). Clicking a contact address and it shows on the Nav-screen instantly is sure easier than typing or talking to the voice-recognition system. Of course the car companies then either do not make you buy expensive Navigation (redundant) or in like Mercedes it's in a technology package so the buyer is forced to spend more for the really safety feature. Some like GM (the Corvette was the first example) make the Apple CarPlay standard along with front cameras (in 2 LT models or up) so the customer doesn't need to buy the Nav system. However some cars like Corvette (incredibly) don't have blind-spot warning indicators; whereas their entry products (like a Cruze or Malibu) do include such safety features. Of course most Buick's and Cadillac's have all these.

Generally the pricier premium brands invested so much into technology that they are reluctant to abandon that to say an Apple or Google system. But it is what the consumer wants; so slowly they come around (the new E Class 'Benz has it; while the popular C Class was said to, but no, not until 2018). The first car with 'wireless' (the idea being that using it drains battery life fast so they required plugging-in) Apple CarPlay and wireless charging will be a 2017-'18 new BMW 5 series; going on-sale this Spring. The 2018 Corvette and I hear 2018 Audi A5 and S5 (redesigned models) will also have these. At CES last year VW demonstrated a wireless Apple CarPlay and were told to shut it down day-1; because Apple was not ready to market it. That and the knowledge of wireless charging coming in a few months is why I'm sure the 'next' iPhone (whether called iPhone 8 or 7s) will have the feature; very sure in the Plus model; probably in the standard. (I could go into other new Apple features coming; but another time.)

My main point about autonomous driving combined with new electronics or propulsion hybrid combinations is, how does one play that. Tomorrow I'll do something we do typically once a year, which is try to find a speculation that isn't widely known or followed, but might have low risk and some potential. I do not encourage speculation, but every now and then a Vegas bet can be of slight interest to some. After all with the market and correction risks high, it does tend to cause one to look at what's not fully exploited. (This year in time many huge infrastructure companies are still not terribly expensive; but again there's going to be a resting time before further moves; as percentage gains rivaling short-term moves of the last two months aren't very likely.) 

Switching gears a bit back to flat-panel TV's, a ton of which will be updated this week as 2017 models (these haven't changed that much since we got 4K, which soon increasingly will benefit from 'content' becoming available in broadcast form). The big reveal I've shared in recent months is an unknown (generally) plan by AT&T / DirecTV to put everyone on the internet (talk of a bandwidth burden, but they say it's not a problem) and minimize satellite as they expand. DirecTV Now was really their first mainstream shot at this form of over-the-top broadcasting, as it has nothing to do with traditional satellite or cable; and for many people will suffice (by the way their intro promotion ends on the 9th; just in case anyone is considering it; and if you're a regular customer of DirecTV; I now know there's zero reason to even consider this).

In sum:

We have another round of CES starting; their 50th Anniversary. The focus remains on 'autonomous or driver-assisting systems' in automotive; at the same time virtual reality 2nd Generation systems should be premiered. I will take a look at all of these.

All these 'virtualization and visualization' technologies have one thing that I 'sense' in common. All are very dependent upon sensors and optics; not just the powerful miniaturized computer chips that make this possible. Years ago we wrote about Flir Systems, MobileEye, Micron and others; but things are moving along; so I see potential given expansion by some manufacturers into the core areas with multiple uses in both consumer electronics, with the automotive transformation, and increasingly medical and military roles.

It may be recent years have not only seen mundane economic growth but also development and refinement of many systems that yet to hit their stride over the years just ahead. After all, we have a huge turnaround coming for a variety of areas (including infrastructure, military modernization, healthcare, and more); so perhaps new generations of become commercially viable. I'll delve into a bit more of this next time.

Bottom line: for the market, is higher until it isn't but it's extended; almost all who disagreed about a 'Trump Bump' effect on market psychology are in a panic to get in; so we still think corrective action comes sooner rather than later this year, which is the opposite of most viewpoints. However, as stated since before this all began, the correction should be milder than otherwise; presuming no exogenous disasters strike.