When you run a marathon, it’s better to focus on the finish line rather than each breath or stride. That was the first thing that came to mind this month as the tech-heavy Nasdaq sold off roughly 10% and Apple saw $180 billion erased from its market valuation in a single day, the most any U.S. company has ever lost in a trading day.
Focusing on the finish line is important not just in sports but also in the stock market. While the tech sell-off hammered markets over the last two weeks, it is important to look at the bigger picture. Just like a marathon runner might need to slow down to catch their breath, the market needs to do the same thing. A healthy pullback is good for any bull market.
Since the market collapsed in late February and early March the Nasdaq is still up roughly 60% and close to record highs. To me, the pullback is a blessing in disguise as the best tech stocks will continue to rise long into the future.
Remember, this is a marathon, not a sprint. Just look at Tesla Inc. (TSLA). Its stock dropped by almost 50% in 2018-2019, and in 2020, it had a similar drop. But if you would have held on for the ride instead of selling in the downturn, you would be up over 500% today.
The same could also be said for semiconductor company Nvidia Corp. (NVDA). It saw an over 50% drop at the end of 2019 and then in 2020 dropped 30%. But if you held on through the drops and even bought right at the previous peak, you would still be up over 70%. Going out even further, you could be up 10,000% and 30,000% respectively. Those are some big gains anyone would be crazy not to want.
That is why it is important to look at the bigger picture. The Nasdaq has its ups and downs and just like a marathon, it takes some time to get to the finish line. This month’s highs are still above the peak before the pandemic and this comes at a point when the economy is still far from recovered.
So, when I see pullbacks like this, I go back to tried and true companies that survive these market conditions and have the fundamentals to move higher.
After contracting COVID-19 last May, he was hospitalized with severe respiratory issues and multiorgan failure.
And if that wasn’t bad enough, the 42-year Pennsylvania warehouse worker also had to deal with a malfunctioning heart. That alone could have killed him.
But doctors at the Mercy Catholic Medical Center in Pennsylvania were able to save Smith in no small measure because of a tiny heart pump.
Known as the Impella, that device received an emergency use authorization from the FDA to treat coronavirus patients only weeks before.
Of course, Smith credits the medical team with saving his life. But he’s quick to point out that the Impella played a big role in it all.
And Bill is not alone.
These kinds of heart complications are reported to affect as many as 10% of COVID-19 patients.
Fortunately for tech investors, there’s a lot more going on here than a feel-good feature story.
The medical device market is worth $625 billion, and the company behind Impella can grab a big chunk of that.
The best minds in biotech are working round the clock on putting a stop to the COVID-19 pandemic. The project includes over 135 vaccine candidates and the profit potential here is massive.
This is literally about saving the world.
The thing is, though, vaccines are only one part of this project. There’s another dimension, a “silent partner” in the project that doesn’t get quite so much heroic headline ink but is just as important.
You see, of all the vaccines coming down the pipeline, 31 are currently in human trials. There’s a very good chance that one of them will be safe and powerful enough to begin mass distribution in early 2021.
But there are 328 million living Americans and 7.5 billion humans on planet earth. It will take time to vaccinate them all, and that’s where our “silent partner” comes in.
It’s blazing a trail towards the kind of better COVID-19 testing technology we will need to get things fully back to normal.
This month, you’re getting a brand-new feature as a subscriber to Strategic Tech Investor. It’s called the Monthly Mailbag, where I’ll be taking some of the most pressing questions that I’ve received and answer them on video.
This month, I take a look at the ongoing drama between Apple Inc. (AAPL) and Epic Games, some of the biggest stock-splits happening in the tech world, and the outlook for federal intervention in the course of the economy.
Looking for a parking spot for 15 minutes, spending 20 minutes filling out forms, and waiting for 30 minutes or more to see your doctor is a relic of the past thanks to virtual medical appointments through our computers and phones.
And it’s easy to see why.
What’s referred to as “telemedicine” can save patients nearly two hours of their time, according to Forbes.
Being in the comfort of their own homes is also a major selling point, as a Doctor.com survey found that 91% of the respondents said telemedicine would:
Help them stick to their appointments.
Manage prescriptions and refills.
Follow wellness regimens suggested by their doctor.
Keep in mind folks that telemedicine was becoming more commonplace, and then COVID-19 sent it into overdrive.
As far as hard numbers go, telemedicine forecasts B.C. (before coronavirus) show this market is only getting more valuable, climbing 127% from $35.5 billion dollars to $80.6 billion by 2025.
So those estimates could be too conservative, and I don’t want you to wait around to make money as this market gets bigger and bigger.
The good news is there’s a fire sale going on in the telemedicine market that we can take advantage of right now that will pave your road to wealth.
I’m talking about Teledoc Health Inc. (TDOC), which got slammed on August 5, closing down 19%.
The reason was that the firm is making a big buyout, one that I think is very savvy.
The COVID-19 pandemic is and has been an unprecedented event, but there’s also something else to think about.
During this moment in history, we have never had a unified global effort quite like this to find an effective vaccine, and the convergence of technology and medicine that we have access to is allowing researchers to work on a vaccine at break-neck speed.
As of this writing, there are currently 28 COVID-19 vaccines in human trials, and the Trump Administration believes it will have an effective vaccine by 2021.
The leading names in tech are continuing their legacies out outstanding gains that drive the entire market along with them, but making the best possible return takes more than a play on the clear front runners. Instead, the savviest investors will look for high-growth potential within the unstoppable trends. Amazon.Com Inc. (AMZN) is facing strong prospects, but Shopify Inc. (SHOP) is where the real potential for market-crushing growth lies. Meanwhile, as tech continues to lead the economy, and more and more parts of everyday life go digital, the chip sector is still at the heart of practically everything, and prepared to make its own gains from nearly any high-tech development imaginable. The outlook for the tech sector as a whole remains good. Click here to watch
From scientists to business leaders, there’s one thing most people can agree on – life will not return to normal and our economy will not reach maximum production until a vaccine for COVID-19 is in hand. To find this vaccine, the convergence between tech and medicine is creating a biotechnology revolution.
Operation Warp Speed (OWS), an initiative in the United States, aims to deliver over 300 million doses of a safe, effective vaccine for COVID-19 by January 19, 2021.
And as of this writing, what we call a new, viable “Super Vaccine” is pushing to begin production of up to one billion doses. Right now, a tiny company behind the Super-Vaccine has a mere $60 million a year in sales.
Over the weekend, my friend and colleague, Director of Technology Investing Research, Alex Kagin, sent you a jam-packed update about the explosive biotech IPO market.
During this moment in history, the deployment of vaccines and new medicines is at the forefront of the world’s needs, and biotech firms are raising record amounts of money.
I’m talking about companies like Relay Therapeutics Inc. (RLAY) going public mid-July and raising $400 million in an upsized IPO.
It’s an especially big deal because today, I want to talk to you about IPOs in general, and there’s one investment opportunity in particular that I’m going to share that has a focus on go on the red-hot sectors of tech and life sciences.
I’ll have more on that in just a bit.
You see, when it comes to finding market-crushing tech stocks, I never take a leap of faith.
And neither should you.
Here’s the thing. One of the hottest ways to issue new stocks to the public asks you to do just that.
This investment is known as a special purpose acquisition company (SPAC). I believe it should be called RISK.
Let me explain. Tech companies regularly debut initial public offerings (IPOs). In fact, just last week, Barron’s reported that there have been 133 IPOs that premiered new stocks onto the U.S. market in 2020.
To make these debuts, companies hire investment bankers, go on roadshows and produce plenty of data to support their thesis.
SPACs do just the opposite. They ask you for blind acceptance. That’s because these are basically blank-check investments.
Like I said… RISK, way too much for my taste.
And yet, there is a lot of money to be made in IPOs – if you know where to look.
We’re coming up on the one-year anniversary of what at the time seemed like a controversial call.
But it turned out to be very profitable.
See, back on July 26, 2019, I suggested you invest in a breakout stock that had just gotten slaughtered.
My column appeared the very day after the company I have in mind lost more than 25% of its value – in a single session.
Despite that drubbing, I struck a very confident tone. How could I be so sure of a strong return?
Fair question. Simple answer. The company has a long track record of excellent earnings growth.
And those kinds of stocks very often not only weather setbacks but go on to become market leaders once again. This medical device leader rallied back by 40% in just five months.
