2020年11月3日星期二

Biden or Trump? For This Profit Trend, It Doesn't Matter

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The outcome is irrelevant!

No matter who wins the Presidency today, biotech stocks are destined to remain the hottest — and potentially, the most profitable — trend in the markets.

As I shared last week, small biotech stocks have helped me bank a long string of triple-digit profits over the last twenty years. But never more so than in recent times.

In fact, earlier this year, my readers locked in not one, two, three, four, five, or six triple-digit gains in biotech stocks… but seven of them.

In the same day.

How is that possible?

Well, for starters, the momentum trend is our friend right now…

Let's Go to the Videotape Chart

To show you what I mean, take a look at the chart for the biggest biotech ETF — the $9 billion iShares Nasdaq Biotechnology ETF (IBB).

Biotech was the fastest sector to snap back from the Coronavirus sell-off. Then it quickly went on to keep hitting new all-time highs.



(By the way: the trend in the SPDR S&P Biotech ETF (XBI), which is weighted towards smaller biotech stocks, is even stronger.)

This isn't a fluke. Instead, it's the result of a permanent shift in investor sentiment and behavior.

You see, prior to the pandemic, biotech stocks were considered a potential source of considerable profits, but were also considered risky.

Now? They're considered to be very profitable — and absolutely vital to human survival.

Heck, without biotech research and development, there'd be no chance at a Covid-19 vaccine.

The Smart Money is Piling into Biotech

That's why, for more and more investors — including the "smart money" that gets into new trends early — biotech has gone from being an optional sector, to a necessary sector.

Consider:

  • In the first half of this year, global investors plowed $16.55 billion into over 450 private deals in the biotech and life-sciences sector, according to Crunchbase.

  • And if we look at the U.S. alone, Q2 2020 marked the largest quarter ever for venture investments in biotech. According to Pitchbook, funding topped $6.4 billion.

With all that capital flowing into a single sector, the takeaway is clear:

Boom times have arrived for biotech.

In fact, in a matter of months, public biotech stocks have been soaring 105%, 243%, 641%, even as high as 949%.

And for the record, all those gains I just mentioned are actual profits from small biotech stocks I shared with my readers this year.

Those profits came in as little as 25 days. And the "longest" readers had to wait for them was 136 days, or fewer than five months.

Biotech Profits Are Here To Stay

Furthermore, given all the factors you learned about today, biotech profits are all but guaranteed to continue.

Bottom line: Don't ignore the breakout trend in biotech. Embrace it!

Biotech stocks belong in every investor's portfolio. Now more than ever.

So in coming columns, I'll share the three biggest obstacles to investing in this trend for everyday investors like you.

And of course, I'll also share the perfect solutions.

Ahead of the tape,
Lou Basenese
Lou Basenese

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