It’s been a turbulent year for equity markets…
With the uncertainty around COVID-19, major U.S. indices experienced the worst crash in over a decade. The S&P 500 fell more than 33% in early spring. This was followed by a remarkable rally, and the index is now up about 13% year to date.
But some well-known businesses have not been so lucky.
As I write, American Airlines, Carnival, and Hertz are still down around 45%, 56%, and 88%, respectively, on the year. Hertz even filed for bankruptcy back in May after more than 100 years in business.
With that sort of carnage, what I’m about to say next might sound shocking.
But the pandemic has actually accelerated certain industries. And investors in a few key stocks are making a fortune in 2020.
Here’s what I mean…
691% in a Year
That’s how much investors in Moderna (MRNA) have made since January. That’s right. Investors in this company have more than quadrupled their money in under a year. And this was during one of the worst pandemics in modern history.
How is this possible?
Well, Moderna is a biotechnology company focused on something called “synthetic biology.” That’s the technology that allows scientists to engineer functioning biological organisms.
For the most part, Moderna flew under the radar since its IPO… until the pandemic broke out. It’s using synthetic biology to create a vaccine for COVID-19.
It took the virus, sequenced it, and then designed a vaccine. In a matter of days, Moderna came out as a leading candidate.
As of this November, its COVID-19 vaccine has already shown 94.5% effectiveness. And just this week, Moderna submitted its vaccine to the Food and Drug Administration for emergency use authorization, which would allow it to begin to be distributed.
And its stock price has more than quintupled as a result.
To see a synthetic biology company have a breakthrough like this shows why it’s one of the areas of technology I’m most excited about over the next decade.
COVID-19 Has Changed the Game
I can’t emphasize enough how transformational this pandemic will be for the precision medicine trend we’ve been following in my research services. In the last 30 years, I’ve never seen the medical field come together and tackle a common problem as it has with COVID-19.
Companies have rushed to build diagnostics equipment to confirm if somebody has COVID-19 and to create all sorts of therapeutic approaches to produce either a vaccine or a therapy for the virus.
We’ve also been evaluating existing drugs that have been used for decades to see if they can be repurposed in the pandemic.
It’s been extraordinary. And it’s shined a light on precision medicine.
For those who are unfamiliar, this is an emerging approach to treat and prevent diseases by considering each person’s genetic makeup, environment, and lifestyle.
This isn’t just another drug or treatment… precision medicine offers a whole new way of thinking about health care.
And this trend will accelerate… especially now that people realize how fast the industry can actually move.
We now have more advanced technology like synthetic biology and genetic engineering that can put potential candidates together in just a matter of months. This is the first time we’ve seen that this can happen this quickly. In some cases, candidates were developed in a matter of days using modern techniques for drug discovery.
This has completely changed the game.
And as a result, we’re going to see the whole field of medicine transform to take advantage of new opportunities…
This will be things like technologies that create real cures… not just treatments for symptoms.
We’re going to revolutionize health care to identify potential problems before we even feel ill…
And if we do get sick, we’ll receive personalized treatments rather than the “one size fits all” approach we’ve used up till now.
And as many readers can probably guess, all of this is going to lead to incredible investment opportunities…
The Best Way to Invest in Precision Medicine
Investing in precision medicine is a little different than other industries. First, some of the most exciting companies in this space are private.
I tend to track these companies from early on… sometimes as early as their seed venture capital round.
I follow their subsequent capital raises. And I keep a close eye on when I think the most exciting companies with the most exciting therapeutic approaches are going to go public.
There is a group of high-quality venture capital and private equity investors I track every week. They’re always good indicators of potentially exciting companies.
And there’s one more important rule about investing in the precision medicine trend…
Timing Is Key
Another important thing to know about this market is that many of these companies move on catalysts… key announcements or news.
That can be a presentation at a medical conference on September 20 at exactly 2 p.m. Pacific Standard Time. It can be at 4:30 p.m. on the East Coast, when a company announces its earnings.
This industry lives and thrives off these specific moments in time.
I’ll give you one example.
Back in January, I recommended Akero Therapeutics (AKRO) to my readers.
I had been tracking Akero closely even before its IPO. And I knew that it was on the verge of releasing trial results for its treatment for patients with nonalcoholic steatohepatitis (NASH) – a liver inflammation disease.
Sure enough, the trial results were positive. The stock popped this past June. We held on for a few more days and ultimately locked in gains of 87%.
Here’s what some of my readers had to say about the trade…
This is the first sell alert for me. I locked in gains of $6,600 in seven months. I am pleased with this…
I own all three of your services and am up $125,000 if I sold today. Thanks for your great advice and sharing your knowledge. I am looking forward to your new venture!
– Karen N.
(Gain of +$4,322.) I’m looking forward to the next moneymaker. Thanks so much for your motivation to “help the little guy.”
– Frank S.
I’m pleased to inform you that this first trade has paid for my lifetime membership! I invested $5,016.00 and sold for $8,066.66. Now, let’s keep the momentum going!
– Dan S.
As great as this trade was, it’s on the lower side of what’s possible with these kinds of companies. But the important thing to understand is that investing in the right stocks at the right time can lead to incredible gains in a matter of days or even hours.
And I believe I’ve spotted the next big winner in the precision medicine trend. As I said above, it’s trying to cure… not just treat… an inherited disorder caused by a genetic mutation.
And I believe that this little-known stock has potential to soar as much as 1,000% in a single day.
I’d like to tell you more about this stock, so I’m hosting a very special presentation.
On December 9, at 8 p.m. ET, I’ll share all about this explosive stock and the precision medicine trend at The Cure Event.
If investors only ever buy one biotech stock, it needs to be this one. Click right here to reserve your spot.
Editor, The Bleeding Edge