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How We Turned $100,000 Into $788,000 in Under Four Years

By Dr. Steve Sjuggerud
Monday, March 23, 2015

"If you catch just one biotech bull market in your lifetime, you may never have to work again..."
 
I've written that many times here in DailyWealth.
 
I hope you've taken me up on that advice – and caught this bull market – because it has been a great one.
 
Subscribers to my True Wealth Systems letter sure have taken advantage of this bull market...
 
TWS subscribers who followed my advice since the beginning of 2012 would have turned $100,000 into more than $788,000. We didn't do something complicated, either...
 
We bought a simple biotech index fund – an exchange-traded fund (ETF). Here are our trades:
 
Start
End
Gain
 $ 100,000
1/4/2012
11/5/2012
56%
 $ 156,000
12/5/2012
4/2/2014
184%
 $ 443,040
10/1/2014
Today
78%
 $ 788,611

We did two things right...
 
We bought a "double-long" ETF, which magnified our gains.
 
We've stuck with it. We haven't bailed, even though readers are up nearly 700%.
 
You know what? We're STILL not selling yet.
 
This biotech bull market – in our opinion – is not over yet.
 
We get it... We know that a 700% gain in a little more than three years is big. We can ask, just like you, how much more is left?
 
When we ask ourselves objectively, we still think there's more upside potential.
 
Here are two reasons why:
 
1.   Biotech stocks are expensive... but they still aren't near the nose-bleed levels they reached in their last great bull market. Take a look:

 
Don't get me wrong... I realize today's values in biotech stocks are not sustainable. I realize today's near-bubble in biotech stocks will burst, someday. But right now, I don't want to miss out on the fun before the day of reckoning finally arrives.
 
2.   The general public hasn't gone crazy over biotech stocks yet. (For example, according to Jason Goepfert of SentimenTrader.com, we are not seeing an extreme in investor optimism in biotech stocks yet.)

At the peak of a market, the general public is usually crazy about a sector. But the general public hasn't been enamored with biotech – yet. When the general public is finally excited about biotech, the top will be near. We are not there yet.
 
We will get out of our biotech trade when our True Wealth Systems computers tell us it's time to get out of biotech... At that point, we'll be done. We'll be satisfied. We'll have done our job for our subscribers, pocketing hundreds of percent in a couple years in an ETF.
 
But we are not there yet...
 
It's definitely late in the game in the biotech bull market... But we think there's a bit more juice to squeeze out of it.
 
It ain't over yet.
 
Good investing,
 
Steve




Further Reading:

Many investors think ETFs are "boring," slow-moving investments. According to Steve, this line of thinking is a big mistake. Here are the top three reasons why he loves using ETFs...
 
The Safest Way to Pocket Triple-Digit Gains
To make big profits, you DON'T have to take big risks...
 
This Essay Could Literally Save You Millions of Dollars
If you have an IRA, 401(k), or any other kind of "traditional" investment account, you need to see this message...
 
Access This Billion-Dollar Strategy With a Single Click
You could have turned $10,000 into more than $1.8 billion if you'd followed the right investment strategy...

Market Notes


NEW HIGHS OF NOTE LAST WEEK
 
Wells Fargo (WFC)... America's Largest Bank
E-Trade (ETFC)... online broker
Cigna (CI)... health insurance
Humana (HUM)... health insurance
Home Depot (HD)... home improvement
Best Buy (BBY)... electronics
Walt Disney (DIS)... entertainment
Bristol-Myers Squibb (BMY)... Big Pharma
Eli Lilly (LLY)... Big Pharma
Prestige Brands (PBH)... over-the-counter medicine
CVS Health (CVS)... pharmacy
Walgreens (WBA)... pharmacy
DaVita (DVA)... dialysis centers
Dollar General (DG)... dollar stores
Hain Celestial (HAIN)... organic food
Scotts Miracle-Gro (SMG)... fertilizer
General Motors (GM)... auto maker
Fiat Chrysler (FCAU)... auto maker
Toyota Motors (TM)... auto maker
Foot Locker (FL)... shoe stores
American Eagle Outfitters (AEO)... retail
Under Armour (UA)... athletic gear
Kohl's (KSS)... department stores
Target (TGT)... department stores
Revlon (REV)... makeup
Canon (CAJ)... cameras
Facebook (FB)... social media
Starbucks (SBUX)... expensive coffee

NEW LOWS OF NOTE LAST WEEK
 
SeaDrill (SDRL)... offshore drilling
Transocean (RIG)... offshore drilling
Peabody Energy (BTU)... coal
Arch Coal (ACI)... coal
Cliffs Natural Resources (CLF)... coal and iron ore
Wynn Resorts (WYNN)... casinos
3D Systems (DDD)... 3D printing
Mattel (MAT)... toys

premium teaser

You must understand this strategy to make enormous gains...
 
Cut your losers, and ride your winners. That's it. Stick with that simple strategy and you're light-years ahead of the average investor...
 

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