Buy Into Biotech’s Bull Market Before the Run
“I felt like the first man on the moon.”
French scientists have just created a robotic exoskeleton to help a paralyzed man walk again — using only his thoughts to control it. These were the words he used to describe his experience.
This is just one example of the power of biotech.
And these kinds of life-changing innovations are just the beginning. Due to a recent rise in investor support, I believe the biotech sector is just gearing up for a brand-new bull market.
In fact, I predict a number of biotech stocks are set to rise by thousands of percent this bull run.
Check out this week’s video for details on this upcoming bull market.
We also discuss:
- How 15 new Tesla semi-electric trucks are replacing Pepsi’s old freight trucks and what that means for the future of freight.
- The greatest applications for Internet of Things innovations.
- Why millennial housing refinancing is at its highest and how that affects the housing industry.
Check out this week’s Market Talk below:
October 7, 2019
Amber Lancaster: Welcome to this week’s Market Talk. I’m Amber Lancaster, joined by Paul Mampilly and Hudson Cashdan. Each week we look forward to sharing our viewpoints and giving insight into what’s on our radar. Today’s outlook is for the week of October 7, 2019. I’ll being by sharing with you what I’m watching and then we’ll hear from Hudson and Paul.
Today I’ll cover three major topics. The first will be my take on recent and upcoming U.S. economic releases. Then I’ll highlight my innovation story of the week with our Good News Roundup in conjunction with an update on the Disruptification Index. Let’s begin.
Last week’s September jobs report number showed the jobless rate hit a 50-year low. It now sits at 3.5%. The jobs report also showed that any issues in the manufacturing sector are contained, likely short lived and not affecting the economy. Also goods sector employment continued to tick higher, as well as business and trade/transportation services.
An interesting look into the U.S. youth underemployment rate, which focuses on those age 16 to 24, showed it fell to 13.4% from 15% a year ago. Also, the initial jobless claims for the week of September 8 did rise by 4,000 to 219,000, but this number generally reflects the General Motors workers strike. In all, U.S. employment is still intact.
The ISM reading from last week showed it’s being hampered by the ongoing U.S.-China trade dispute, but if the trade resolution is found and can be brokered, the number will rebound. Meanwhile the Bloomberg consumer comfort index reports consumer confidence among prime age working Americans ticked higher and remains near economic highs.
Where this week’s releases are concerned, there will be four major economic releases. On Tuesday the producer price index final demand month over month for September will post at 8:30 a.m. On Wednesday, August’s final wholesale inventories month-over-month will post at 10 a.m.
On Thursday, September’s consumer price month-over-month index will post at 8:30 a.m. On Friday, the University of Michigan sentiment October preliminary reading will post at 10 a.m.
Now for my innovation story of the week. Electric is reporting 15 Tesla semi electric trucks are going to replace Pepsico’s existing diesel powered freight equipment with “zero emission and near zero emission trucks and equipment at its Frito Lay Modesto, California manufacturing site.”
The Modesto facility is one of Frito Lay’s largest in the U.S. and they are turning it into a near-zero-emissions freight facility with the help of the San Juaquin Valley air pollution control district, which is contributing half of a $30.8 million cost of the project.
Now for our Good News Roundup stories. Good News Roundup story number one: If you’re like me and purchase most of your makeup online, per Engadget, as part of its ongoing commerce push Facebook allows you to use Spark augmented reality platform to digitally try on items you can purchase through Instagram.
Instagram confirmed in an email that is has launched a pilot where you are able to check out eyewear from Rayban and Warby Parker in addition to cosmetics from companies like Mac. The functionality is accessible directly from feed posts as well as shop pages and stories.
Good News Roundup story number two: On the medical front, most of us have heard of the technology breakthrough with exoskeletons, especially for use in warehouse and manufacturing workplaces where they help people to lift heavy objects. Per Medgadget, now a team of researchers in France have succeeded in getting a man who can’t move his arms or legs because of a spinal cord injury to take autonomous steps using an exoskeleton.
The patient, who has been paralyzed for two years, said his experience was like being the first man on the moon. This exoskeleton uses two brain implants and the coding technology connected to them to make this achievement possible.
Good News Roundup story number three: Millennials are beginning to make strides on the housing front. Per HousingWire, a recent survey by Ellie Mae Millennial Tracker shows refinances climbed to 25% of all closed loans for millennials in August. This is up 2% from the previous month and is the highest percentage since December 2015.
The August Millennial Tracker also found that the average age of millennial homebuyers remained at 30.5 years. This is the highest average since 2015. While millennial homebuyers age is increasing, their credit score is also going up. The averages credit score for millennial borrowers stayed at 728 and is the highest average since May 2015.
Turning to our Disruptification Index, I must tell you that the Bloomberg technical function to calculate the performance went down on Friday. We’re still tracking the index manually and based on our best estimates it’s up 21% year-to-date. However we will have the real number for you next week.
That’s it from me. Hudson, please share with us what you’re watching for this week.
Hudson Cashdan: Thanks Amber. This week I want to highlight an interesting article I read from Renaissance, who writes about the IPO market. They reiterated what we wrote about in Bold Profits Daily last week, which was an article about Wall Street and Main Street teaming up on Silicon Valley to push them to lower valuations.
What’s been happening is Silicon Valley wants to get the best prices they can and they want to push the valuations higher and higher leaving less there for public market investors and the market has been pushing back. Renaissance wrote about that and that’s a good thing for us.
The more we can push back on them, the more they leave on table of upside for us and the better it is for all the participants in the public marketplace. We also wrote about something called a grace period. These companies coming public have huge market opportunities, but they also have to prove themselves.
They come at a lower valuation because we give them the benefit of the doubt that they are going to prove themselves out. If we’re going to give that benefit of the doubt, the VCs have to lower that valuation to compensate us for that. If they’re not going to lower their valuations, they better show much more of a path toward profitability or profitability when they come public.
That’s basically what the market is telling the VCs and that is good for us in the long term.
The second thing I wanted to talk about is a really interesting study I read by Upwork and the Freelancers Union on the freelancer economy. Just a few key points from the study. Freelancing income is about $1 trillion in the U.S. right now. It’s about 5% of GDP and it exceeds some large major industries like construction and transportation.
It’s becoming more of a long-term career choice for people. In 2014, 17% of people who freelance said they were doing it on a long-term basis. Now 28% are long-term freelancers. It’s also the choice of younger generations. 31% of Gen x have freelanced in the last two years whereas Gen Z, the youngest generation, is about 53% and millennials are 40%.
It keeps going up with each generation. I think as younger generations get older it’s going to keep going up and up. One in four workers have freelanced in the past year and that should be even higher going forward. That’s very positive. We are a big fan of the gig economy. We have a couple holdings in there and we write about it a lot.
Then lastly I just want to congratulate you if you got into the Aprea Therapeutics IPO, it’s up 36.5%. Congrats on that and hopefully a lot of people got in. Write in if you did get in or if not. That’s what I have. Over to you, Paul.
Paul Mampilly: Thanks Hudson. Great job by the way. Aprea is a rock-solid nice gain right off the bat. It’s really where stocks setup to pop, which is really what investment bankers try to engineer. Of course if you are a company you want the highest value, if you are an investor in the IPO you want that pop on opening day.
A lot of great stuff between Amber and Hudson. With the gig economy I really believe there’s going to be a lot more companies that come to cater to this because it’s growing, as Hudson laid out. I believe we must be seeing some of this because of what Amber laid out. 3.9% unemployment and I cannot think in my time in the United States — is it a 50-year low?
Paul: It’s absolutely astonishing numbers. Then contrast it to what I call the bad news media where good news is banned. They’re telling you recession. You would think we were still in 2008 and we were having a financial crisis or a depression. That’s the tenor and tone of what is being taken by MarketWatch and Yahoo! Finance.
It is just nonstop gloom and doom. This is why I’ve taken to actively tell people the other side — the real deal as I’ve been calling it. If you want regular updates, this is my opportunity to tell you to subscribe to this channel and give us a thumbs up so it gets a little higher rating on YouTube and other people also get these updates.
Share it with your friends and family and comment and tell us about what we’re telling you and the contrast of what everyone else is saying. This is also my opportunity to give us the weekly shameless plug. Following what I did for my Bold Profits Daily on Tuesday, I told you about what I believe is a coming big bull market in biotechnology stocks.
My publisher and I are coordinating and we want to let as many people get into this bull market as we can. There’s going to be some special announcements coming out over the next couple of days that key you into some incredible opportunities in my Extreme Fortunes service.
This is a service that focuses on small stocks that can skyrocket and soar higher. Look out for those announcements over the next couple of days. We’re going to focus on small biotechnology companies and companies in molecular testing, which have also generated thousands of percent of gains so far.
In terms of what is going on in the market, I am still optimistic. You can look at sectors like housing and you can see these stocks are breaking out because of what Amber was talking about. The millennial generation is out there buying houses. Now that the housing sector is making houses for them, the sector is starting to boom.
Very naturally that is going to lead into other parts of our economy starting to grow, like industrials. Where are all the pieces we put into houses made? They are made in the industrial economy. It’s very natural that money will start to push in there. As the inventory is exhausted, now you have to make new stuff.
This is why Ian in his Friday talks has been talking about the industrial economy. I’ve been saying it’s a place I believe is going to, in time, take over the leadership of this market. You know if you’ve been following me that I believe the great application of the Internet of Things (IoT) is going to be in industrials.
The other place we have seen money push into is new energy and solar stocks. We’ve seen money move into there. Also, the first signs that most of the damage in retail is done. Hudson, I believe you have a couple of what I call new retail stocks in your service. Without giving away, I feel like more will be coming. Am I right?
Hudson: We have one that’s interesting that’s a business model where they are using big data to figure out what to offer customers before they even start to produce it. That’s a little different than even the Zara brand that was innovative at the time doing short cycle turnaround where they would try a new fashion line, see if it worked.
If it did they would keep going, if it didn’t they would pull it and move on to something new. That was a trial-and-error thing. Now we have the next step.
Paul: It’s actual data. The thing is, it’s definitively different than old retail. It’s definitely going to be new retail, that’s where the growth is going to be. The first place it’s going to show up is in Hudson’s service IPO Speculator. If you’re interested in new companies that’s the one to check out.
As I mentioned, subscribe to this channel. Share it with your friends and family, give it a thumbs up, comment below and tell us about your experience with our channel. With that, Amber, back to you.
Amber: Thank you Paul and thank you Hudson. Great information as always. I learned a lot and I hope our readers and listeners did too. Until next week, everyone take care.
Before I sign off, I want you to keep an eye out this week for a special video on the biotech bull market and how you can profit through small-cap stocks.
I’ve pinpointed three incredible stocks that will make everything else look like a drop in the bucket.
And they all offer the opportunity for a 10X return. We’re putting the finishing touches on this event now, so stay tuned! We’ll be releasing all the details soon.
Editor, Profits Unlimited