Invest in Biotech Stocks Like Wall Street Analyst With a Main Street Budget
If I had to choose one sector to trade in for the rest of my life…
It would be biotech. The advancements in biotechnology are building the foundation for a future that will be dominated by A.I. and biotech companies. These will be the Googles, Facebooks and Amazons of the future. Defining entire cultural shifts.
I am all in on biotech stocks because the potential for massive gains is HUGE. Biotech investment portfolios are poised to take off in the neat future.
I’ve seen small-cap biotech stocks that were only trading for a few dollars skyrocket to triple digits in no time.
Check out this week’s video to find out three ways the biotech market is aligning to bring you major profits — plus, the single best way to buy in today.
Why Biotech Stocks?
These are my top three reasons to invest in biotech stocks now.
Reason one: We are coming out of a three- or four-year bear market. Go back and look. Back in 2012 you had this enormous biotech market. Even if you bought an index you would have made 200-300%. Go back and look, we have done this work. There were so many stocks that went up by thousands of percent.
That market peaked out by 2015 and it’s been hovering around. That is a great sign. It means the low-price stock has been sucked in. Now as demand comes in people are forced to bid it up higher. That is music to my ears and music to your portfolio. It means stocks can go up.
Reason number two: If you follow biotech, you know there is a mini cycle that goes on around conferences. There are these big conferences like ASCO, which is the biggest conference. It covers cancer drugs. Every company tries to get their studies to finish so they can announce their results at ASCO.
For that to happen, you have to set everything up right about now. That means that between now and ASCO you are going to see a lot of results announced. They are all announced prior to ASCO and then presented at ASCO. As rumors start to get out of this drug working and this drug starting to do this, you tend to see these moves up in these stocks that can rocket stock prices higher. So number two, the timing is right.
Reason number three: Between 2015 and now we have had some extraordinary developments. For example, the cost of sequencing a genome is plummeting. It will soon be at $100. There is so much more genetic information out there that is influencing the way trials are done, the way people are taking medications, how things get prescribed and how diseases are being diagnosed.
In other words, there is a revolution in between the bull market ending in 2015 and now. That, I believe, is going to act as kindling for these stocks to rocket up. You know I always like to shamelessly plug you my services. I can tell you we are planning a biotech small-cap special for my Extreme Fortunes publication. We will be sending you emails to let you know how you can get information on this. Look out for it.
The Best ETF Biotech Stock Right Now: SPDR S&P Biotech ETF (NYSE: XBI)
It’s like a fund that has a lot of different stocks. This is my single-best ETF or stock to recommend for those of you who don’t want to buy individual companies. It’s the SPDR S&P Biotech ETF (NYSE: XBI). The cool thing about this ETF is that it is equal weighted.
All the other ETFs, the bigger companies have much larger weights. In other words, if a small company goes up it never moves the needle enough. Here, the small companies are weighted the same way as the big companies. This means when a small company jumps 50-100%, this jumps as well.
Editor, Profits Unlimited
Learn more about my investing publications ad portfolio recommendations, some of which deal directly with mega trends like biotech stocks.
I’ve been investing for more than 25 years. I started my career on Wall Street in 1991 as an assistant portfolio manager at Bankers Trust. I quickly advanced to prominent positions at Deutsche Bank and ING, managing multimillion-dollar accounts. In 2006, the owners of a $6 billion firm named Kinetics Asset Management recruited me to manage their hedge fund.