You’ve heard us talk about the big 5G revolution that will forever change technology and how we do things.
But there’s another sector of the stock market that’s undergoing a revolution of its own.
And while it’s flown under the radar of big analysts and so-called Wall Street experts, it’s one that will change our lives just as much as 5G.
I’m talking about the biotech industry.
And here’s why that industry is changing and what you, the smart, forward-thinking investor, should do about it.
Speed Is Key for Biotech
Before the coronavirus pandemic, it took companies five to 10 years to develop new vaccines and therapies.
In the age of COVID-19, those development cycles are reduced to months.
Racing to beat the virus has opened doors for new ways to make those drugs. It’s going to allow us to cure diseases at a pace we have never seen.
And biotech companies are using big data and artificial intelligence to make discoveries we could only dream of years ago.
The bottom line is the COVID-19 pandemic has pushed this overlooked industry to new heights.
As you’ll see, that speed not only applies to drug development but to share prices as well.
Biotech Industry Growth: Inside the Numbers
Even before the coronavirus pandemic pushed biotech and pharmaceutical companies into lighting speed development, the industry was on a hot streak.
From its bottom in March 2009, the Nasdaq Biotechnology Index (NBI) registered an outstanding 584% increase to its peak in July 2015. To put that into context, the benchmark S&P 500 only jumped 215% over the same period.
As with the rest of the stock market, the NBI suffered a massive dip in March 2020, thanks to the pandemic. However, since that drop, the NBI has pushed more than 31% higher in just three months. By comparison, the index gained just 50% from a low in June 2016 to a high in 2019.
As you can see, the index is moving up at a much faster clip than the previous four years.
Globally, biotech and pharma stock indexes had a great 2019:
Despite the dip in March 2020, we see the industry continuing its strong run through the end of the year.
Adam’s Take on the Biotech Industry
I recently had a long conversation with Money & Markets Chief Investment Strategist Adam O’Dell about the biotech industry.
M&M Chief Investment Strategist Adam O’Dell
He sees a bullish breakout in the broader biotech space.
Adam has his Cycle 9 Alert subscribers in a bullish options play on the SPDR Biotech EFT (NYSE: XBI). They were already able to lock in gains of more than 120% in just seven weeks on a portion of the play … and they’re still holding a second half of the trade for potentially even bigger gains to come.
He also recommended another genomics company to his Green Zone Fortunes readers that has gained more than 10% in a little over a month.
So, as you can see, the biotech industry is going to continue its bullish trend. Investors would be smart to jump in now to capitalize on that growth.