Stocks were looking to recover some of yesterday’s steep losses after another hot inflation reading sent equities tumbling for their worst day since June 2020. August’s consumer price index reading revealed an uptick in headline inflation, despite a drop in gas prices, spurring fear that the Federal Reserve could hike rates even higher than the 75 basis points markets have priced in.
“It caught the market off guard,” said LPL Financial’s Quincy Krosby. “The market had been expecting at least that we had leveled off – perhaps not moving downward but certainly not climbing higher. It was the wrong direction, and the concern, of course, is always translated into what does this mean for the Fed.”
One area of the market where stocks can be found to produce 10x, even 20x returns, regardless of what’s happening elsewhere in the market, is biotech. Looking at the performance of the past ten years, if the biotechnology industry were a sector, it would be the best performing one. Over the past decade, biotech stocks have returned 524%. That beats every last sector, it beats the broader health care sector by 200 percentage points, and it’s nearly double the S&P 500’s total return in that same time frame.
Specifically, genomics is one niche within the biotech group that could offer unimaginable returns. Still, the technology is so new and complex that many investors shy away from companies making astounding advancements.
There’s clearly money to be made in the discovery of new treatments for anything from the flu to cancer. But genomics stocks carry substantial risk. While positive data from a trial could send their stocks soaring, a setback or failure can crush their returns, making them difficult buy-and-hold investments.
Today we’re highlighting a rare, buy-and-hold genomics investment that provides ground floor access to the innovators of tomorrow, along with their potential nose-bleed returns, while minimizing risk.
A Return to Normal? PhD Economist: “Don’t Bet on It”
According to former Goldman Sachs executive, Nomi Prins…
Americans who are hoping for a ‘return to normal’ are going to be shocked when they see what happens next in America.
She says, “If you’re betting your job, savings, or retirement accounts on a return to ‘normal’ you’re about to be left behind by a brand-new crisis few see coming.”
Go here now to see America’s next crisis
One solution for anyone who wants to benefit from genomics advancements but lacks the expertise needed to confidently evaluate individual companies from the group is to delegate individual stock picking to the professionals. In today’s trade, we’ll focus on an exchange-traded fund (ETF) that provides an opportunity for investors seeking access to companies at the forefront of genomics innovation.
iShares Genomics Immunology and Healthcare ETF (IDNA) holds a concentrated portfolio of global companies in the biopharmaceutical and healthcare equipment and services industries that could benefit from long-term growth and innovation in genomics, immunology, and bioengineering. The fund is passively managed, and holdings are weighted by market cap and are constrained such that no individual security exceeds 4% weight of the portfolio. The index rebalances semi-annually.
It’s worth noting that IDNA beat Cathie Woods’ ARK Genomic Revolution ETF (ARKG) in the first ten weeks of 2020 when global markets were rocked by the coronavirus outbreak and investors were eagerly hunting for potential profit in companies researching treatment and vaccines.
iShares Genomics Immunology and Healthcare ETF (IDNA)
- Weighted Average Market Cap $27.87B
- Price / Book Ratio 2.7
- Yield 1.24%
- Expense Ratio 0.47%
- Net Assets 198.74M
- Number of Holdings 43
- Top Holdings: Exelixis Inc (EXEL), Sanofi (SAN), Takeda Pharmaceutical (TAK)
Where to invest $1,000 right now...
Before you consider buying IDNA, you'll want to see this.
Investing legend, Keith Kohl just revealed his #1 stock for 2022...
And it's not IDNA.
Jeff Bezos, Peter Thiel, and the Rockefellers are betting a colossal nine figures on this tiny company that trades publicly for $5.
Keith say’s he thinks investors will be able to turn a small $50 stake into $150,000.
Find that to be extraordinary?
But you have to act now, because a catalyst coming in a few weeks is set to take this company mainstream... And by then, it could be too late.
The Forever Battery: Making Gas Guzzlers Obsolete
Only 2% of cars sold in the U.S. today are electric vehicles… but that’s about to change — FAST.
A new battery breakthrough is ready to hit the market. It could revolutionize the $2 trillion automotive industry … and could soon make gas guzzlers obsolete.
This technology is predicted to cause a 1,500% surge in electric vehicle sales over the next four years.
The company pioneering this new battery could be the investment of a lifetime.