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Story Highlights:
- The coronavirus is spurring fast-tracked development of new precision medicine treatments — involving DNA and RNA therapy — that offer a potential “cure” as early as March.
- These leading-edge therapies are among the innovations driving what Paul Mampilly calls “America 2.0” — the Fourth Industrial Revolution.
- Here are three steps to become a pro in biotech investing and grab a piece of the precision medicine market before it soars to a projected $217 billion.
If you’ve been keeping up on the coronavirus’ effect on the stock market — and what investor hasn’t? — you’ve seen the toxic doom and gloom from the mainstream media:
“Markets Plummet, Dow Drops Over 600 Points As Coronavirus Infections Outpace SARS,” Forbes reports.
“Coronavirus: China shares in biggest fall in four years,” the BBC shrieks.
“The coronavirus is just starting to have an impact on the globe’s economy and politics,” CNBC warns.
But if you read the science press, as I do, you’ll find a very different story of hope in the biotech sector that will open the doors for a phenomenal market opportunity:
“Scientists are moving at record speed to create new coronavirus vaccines,” Science reports.
“Gilead climbs as coronavirus drug shows efficacy, starts trial,” FierceBiotech.com trumpets.
“Co-Diagnostics, Inc. Announces Successful Initial Verification of Novel Coronavirus Test,” BioSpace.com says.
What a difference looking at it through this lens makes, right?
The big picture here is that the outbreak is fast-tracking a “coronavirus cure” through precision medicine.
New DNA and RNA therapies are replacing “one size fits all” medical approaches — like the unreliable flu vaccine and most drugs.
This makes it far more effective and easier to develop quickly and inexpensively.
It’s why precision medicine is one of our Bold Profits mega trends. Smart investors who buy into the biotech companies leading these advances can make a bundle — if they put their money into the right stocks.
Invest in Gene Therapy’s Disruption of “1 Size Fits All” Health Care
At least a dozen companies are developing vaccines or drugs to target the coronavirus, with some predicting an inoculation or treatment by March:
Now, I don’t want to belittle the bad news about the coronavirus outbreak. But, for investors, the outbreak is creating an enormous opportunity in these new advances in precision medicine, biotech and genetic therapy.
According to Global Market Insights, precision medicine was a $79 billion industry in 2018 — nearly twice what it was just five years ago in 2015 ($39 billion).
But the field is just getting started. In fact, precision medicine is expected to grow into a whopping $217 billion industry by 2028. That’s a growth of 985% since 2013 and an annual growth rate of nearly 11% since 2018.
3 Steps to Become a Better Biotech Investor and Grab the 985% Market Surge
These leading-edge precision medicine treatments will take off as part of what Paul calls “America 2.0” — the Fourth Industrial Revolution. Here’s how to line yourself up for the most profits as a successful biotech investor:
Step 1: Don’t let the bad-news media drive you to panic sell. As you saw above, the headlines are covered with fear. To be a great biotech investor, you have to look past this negativity.
In the short term, the markets will rise and fall on the news of the coronavirus outbreak — just as they do with other political, economic and health news. But the scare will pass and the markets will rebound. And in fact, it will open the door for new opportunities and advancement in precision medicine.
Step 2: Learn the Rules of the Game. Any single stock can make you, but you never want to give a single stock the power to break you. The best way to avoid this is to follow the rules of the investing game.
Give yourself as many chances to win as possible. That way, all it takes is one big winner to really rocket your portfolio higher, without the risk of going all-in on any one stock.
Step 3: Gain diverse exposure to all sorts of biotech stocks through an exchange-traded fund (ETF). I recommend the SPDR S&P Biotech ETF (NYSE: XBI). The cool thing about this ETF is that it is equal-weighted so small companies have the same amount of weight as the big companies.
The bottom line is that in the long run, the precision medicine therapies that arise from the crisis will endure. It will boost the quality of health care and make a bundle for investors who put their money into this America 2.0 mega trend.
To your health and wealth,
Nick Tate
Senior Editorial Manager, Banyan Hill Publishing
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