|
| Home | About Us | Resources | Archive | Free Reports | Market Window |
Get Ready for 566% Gains or More in BiotechBy
Friday, April 18, 2008
When biotech stocks get going, they go absolutely nuts... In the early 1990s, biotech stocks as a group had an extraordinary run – good for 1,347% profits. Of course, if you held the right names, you'd have done even better. And that big run wasn't the only one... In addition to that quadruple-digit rally, since 1983, biotech stocks have exploded higher in four separate triple-digit rallies.
Once a big move starts, the gains just get ridiculous. Biotech stocks as a group are at three-month highs right now... We could be on the brink of the next great move. But biotech has been ignored since its last major peak – which occurred near the dot-com mania in 2000. On March 6, 2000, the Nasdaq Biotech Index was around 1,600. Today, it's around 800 – still down 50% from its peak more than eight years ago. It's been an especially long period of no returns in biotech. We're due for a big move. Innovation hasn't stopped in those eight-plus years. Longtime readers of mine know that I like things that are 1) cheap, 2) hated/ignored, and 3) in an uptrend. Biotech is cheap. It's definitely ignored. And the biotech indexes are now up 10% off their lows of just a month ago. It could be the beginning of an uptrend. Our in-house Quant Trader, Ian Davis, crunched the numbers for the past biotech booms (based on the Datastream Biotech Index), and here's what he found...
It's been a long wait since the last major biotech stock boom. I think the wait is just about over... If you're interested in potential 565.5% gains over two and a half years (that's the average gain over the last five biotech bull markets), then you really ought to consider getting on board in biotech stocks... Good investing, Steve
Further Reading:
Three Ways to Get Rich in the Market's Most Volatile Sector Market NotesANOTHER LOOK AT THE GOLD/HOG RATIO The business of stuffing landfills continues to suffer. On Thursday, Harley-Davidson announced it would ship 25,000 fewer motorcycles this year than it did last year. Sales declined 13% in the first quarter, layoffs are on the way, and shares sit at a new low. This news is further confirmation of a trend we started writing about last year... As the U.S. economy goes from "solid" to "less solid," the price of basic stuff with worldwide demand – like coal, crude oil, food, and gold – will rise versus expensive boats, motorcycles, swimming pools, and $100 shirts. We even ran a series of ratios explaining the "real stuff" vs. "landfill stuff" situation. Our centerpiece pitted the ultimate real asset, gold, against the ultimate American icon, Harley-Davidson. When we showed you this ratio six months ago, it was around 17 and trending higher – the price of gold was far outperforming Harley shares. Since then, Harley has lost an additional 23%. Gold has gained an additional 19%. The ratio is now 26... and the flight to real assets continues. |
Recent Articles
|
