The “COVID-19 trade” has run its course. I don’t know about you, but I’m happy to see that! It means we’re that much closer to our lives getting fully back to normal.
But now investors are trying to figure out what to do. Many of the stocks that made sense when America was stuck at home don’t make as much sense today … or at least not at today’s prices. And the market has spent most of 2021 adjusting to that reality.
I don’t ever try to call every twist and turn in the market just right. But I’ve had a lot of success identifying lucrative mega trends early on and riding them as long as possible. I leverage the Momentum Principle, which involves “buying high” and selling much higher.
But all mega trends go through their ups and downs. And that means short-term pullback can present great opportunities to join a long-term trend, or to increase your investment, by buying the dip.
This brings me to one of my favorite mega trends of the next decade: genomics.
The biotech sector grabbed the spotlight last year. More specifically genomics, or DNA-based medicine, became one of the “COVID trades.” It’s not hard to understand why. The two most successful COVID-19 vaccines were both based on mRNA technology.
Apart from the immediate challenge of taming a new, and highly contagious virus like COVID-19, these unique therapies have the potential to revolutionize medicine. DNA-based medicine is arguably the biggest breakthrough within health care since the invention of penicillin nearly a century ago!
And one massive, multi-year tailwind will lead to many more developments in the genomics field…
The Post-COVID Genomics Stock Tailwind
It comes down to aging baby boomers. Every day, more than 10,000 American boomers turn 65. And they’ll be doing that every day for the next nine years … until 2030!
As millions of Americans age into their 70s and 80s, they become more susceptible to diseases like cancer, heart conditions and diabetes … diseases that leading genomics researchers are fighting to conquer. The more boomers age, the more important genomics medicine becomes … and the greater the opportunity for the companies bringing those therapies to market.
But as often happens, Wall Street is focused on the short-term. It’s looking at the pandemic winding down and ignoring the longer-term genomics opportunity.
Consider the rollercoaster ride of the ARK Genomic Revolution ETF (NYSE: ARKG). The ETF, which owns many of the biggest names in the DNA-medicine space, shot up 178% in 2020. But it has struggled in 2021, down about 14% on the year and down about 30% from its highs. You can read more about my thoughts on ARKG here.
ARKG is a great way to gain diversified exposure to this DNA-medicine mega trend. But I’m also working diligently to identify the top players in the space. In my Green Zone Fortunes premium service, I’m targeting the specific genomics stocks that I believe show the best potential for break out profits.
I call the technology behind my No. 1 Genomics stock “Imperium,” and it is poised to be bigger than electric vehicles, artificial intelligence and the internet-of-things. It’s a technology that stands to have as big an impact as the internet has over the last 20 years!
Plus, the aging of baby boomers is only one major tailwind driving the multi-decade genomics boom. The truth is, multiple industries are using this DNA-based technology to innovate. And we’re taking advantage of this mega trend in Green Zone Fortunes. Watch my presentation here to find out how you can join my readers on four different genomics stock recommendations.
To good profits,
Adam O’Dell, CMT
Chief Investment Strategist, Money & Markets