4 Stocks for $2 Trillion CARES Act to Buy Now!
- The CARES Act is a massive $2 trillion response bill structured to help boost the U.S. economy.
- Three major industries are going to benefit the most and pave the way for America 2.0.
- I’ll share four ETFs so you can profit as these industries surge higher.
Some of you may remember I used to do a Bold Profits Daily segment called “Good News Roundup.”
Today it feels more important than ever to look past the doom and gloom and find the good news.
And there’s so much of it!
It’s how we stay #BOP (bullish, optimistic, positive).
So for this week’s helping of good news, I’ve found something perfect for you.
This week the Bold Profits investment team wanted me to investigate the congressional bill called the Coronavirus Aid, Relief, and Economic Security (CARES) Act to see if there is a way you can benefit from it.
Happy to report, I actually found four from three different industries.
They are all well-positioned to benefit from the CARES Act.
The CARES Act is a massive $2 trillion response bill structured to help diverse segments of the U.S. economy.
Big businesses, small businesses, individuals and families touched by the current health crisis all stand to find relief from this bill.
But deep within this bill are the three U.S. industries that will receive a funding windfall to keep them viable today and in the future.
A future we like to call America 2.0.
I shared my findings with the Bold Profits team, but I also wanted to share it with loyal readers, just like you — including four fantastic ways you can invest in the industries set to rocket.
3 Industries Primed to Benefit From the Bill
The CARES Act benefits all U.S. businesses, large and small, but it also earmarks specific funding to three major industries.
Here are the three industries and the allocated funding that will flow into each of them:
No. 1 — Biotechnology and Pharmaceuticals: $27 billion
Per data from NPR, drug access, medicine and medical suppliers will receive $11 billion in funding to help speed the development of vaccines, drug treatments and diagnostic testing.
Another $16 billion will go toward the replenishment of the Strategic National Stockpile of medical equipment.
Moreover, according to Holland & Knight’s health care blog, two sections of the congressional bill really ignite the biotechnology industry.
Simply put, it’s all about biotech innovation.
The first section infuses the biotechnology industry with $3.5 billion (included in the $27 billion total funding listed above). It also removes a $100 million grant cap on “Other Transaction Authority (OTA) at Biomedical Advanced Research and Development Authority (BARDA) during public health emergencies.”
This biotech stimulus paves the way for further biotechnology advancements, treatments and therapies.
The second section “accelerates the consideration of a new animal drug if that drug alone, or in combination with another drug, has the potential to treat an animal disease that could cause serious illness in humans.”
No. 2 — Telehealth: $200 million
The reality of virtual doctors is now.
The phenomenon is called telehealth.
And it has taken off in recent months. It’s shot up nearly 200% over the past year.
At this very moment, with one smartphone call or website click, we can gain quick access to a board-certified medical doctor for a virtual checkup and diagnosis.
The writers of the CARES Act understand the benefits of telehealth services — that’s why they’ve earmarked $200 million to its expansion.
Even before the CARES Act, this revolution was moving fast. Now it’s set to soar.
No. 3 — Aerospace and Defense: National Security Companies: $17 billion
One of the main pillars of strength for the U.S. economy is its national security.
The CARES Act makes certain that the aerospace and defense companies that comprise our national security, are not only protected, but are advanced.
In total, an additional $17 billion is now allocated to our national security as we navigate this health crisis.
4 Ways to Grab Big Gains in These 3 Industries
To participate in the benefits and advancements presented by the bill and beyond, consider buying into the following exchange-traded funds (ETFs):
- Biotechnology and Pharmaceuticals:
The VanEck Vectors Biotech ETF (Nasdaq: BBH) seeks to track the performance of the MVIS U.S. Listed Biotech 25 Index, and the Invesco Dynamic Pharmaceuticals ETF (NYSE: PJP) tracks the Dynamic Pharmaceutical Intellidex Index.
PJP holds 30 U.S. pharmaceutical companies that are screened based on a variety of investment merit criteria, including price momentum, earnings momentum, quality, management action and value.
The ARK Genomic Revolution ETF (BATS: ARKG) invests in companies across multiple sectors, including health care, information technology, materials, energy and consumer discretionary, that are relevant to the genomics revolution.
- Aerospace and Defense:
The Invesco Aerospace & Defense ETF (NYSE: PPA) tracks the SPADE Defense Index, which holds companies involved in the development, manufacturing, operations and support of U.S. defense, homeland security and aerospace operations.
As we navigate the present and look toward the future, these three America 2.0 industries are not only primed to benefit from the recent congressional bill, they’re also part of the lifeblood for our new economy.
How’s that for good news?
Until next time,
Director of Investment Research, Banyan Hill Publishing