Discover: 103% gains on the table for savvy investors, thanks to this 15 June announcement. Here’s why…
History tells us that following this trend can be a smart investment bet
You see, since 1993, similar events have led to double-digit gains in 12 months.
Just look below…
It might seem crazy to invest in a hot sector after a run like we've just seen. But sometimes it can be a profitable move to invest in what's working.
And biotech stocks are hot now.
This is not the only reason biotech stocks are on a tear…
In October 2019 issue of the South African Investor, I revealed why biotech stocks could be a great long-term investment.
You see, at the time, Venture Capitalist funding in biotechnology hit all-time highs. A record $17.5 billion in VC funding went to emerging therapeutics companies. 70% of that money went to US-based biotech firms.
What’s more, VC funding in the US more than doubled between 2016 and 2018. And there has been a major rise in start-up biotech companies going public...
This trend continued at the beginning of 2020. But thanks to Covid-19, the IPO market ground to a halt.
Since then, the latter part of the second quarter has been a strong period for biotech IPOs. And now there is a strong pipeline of companies itching to go public, which could last through the fall, according to Jeff Thomas, senior vice president at NASDAQ.
Backing this up is a report from Investment Bank, Renaissance Capital. The company recently said that interest in biotech IPOs is booming thanks to high investor interest in drug developers immune to the pandemic impact.
There has never been a better time to own biotech stocks than today
Piles of cash are flowing into the biotechnology sector.
There's never been more VC funding going into start up biotechnology firms.
Biotechnology IPOs are on the rise.
And the total value of acquisitions has never been higher.
If you don't invest in medicine... biotechnology... or drug makers... you're missing out on a big part of the US economy. Health care spending makes up more than one-sixth of the entire US gross domestic product.
More importantly, you will miss BIG long-term gains.
You can invest in biotech stocks through an ETF like the iShares Nasdaq Biotech ETF.
See you next week.
Managing Editor, The South African Investor
Two of my favourite picks for post-Covid profits have rallied 20.25% and 53.23% so far in 2020 – And there’s still plenty of gains to come…but you need to act fast!