Biotech Is Back: Check Out This $100 Billion Trend

This market is heating up again… Published By Money & Markets, LLC. March 18, 2024 Published By Money & Markets, LLC. March 18, 2024 [Turn Your Images On] [Turn Your Images On] From The Desk of [Matt Clark, CMSA®]( Chief Research Analyst, [Money & Markets Daily]( Biotech Is Back: Check Out This $100 Billion Trend Money & Markets Daily, After a rough bear market, it looks like biotech is back. With AI, the medical industry is on the cusp of revolutionary breakthroughs in therapies as well as general patient care … beyond what you hear on the news about popular weight-loss drugs. AI and machine learning can help doctors analyze medical imaging data (think X-rays and MRIs) to diagnose patients quickly and accurately. However, AI's most significant revolution has come in the biotechnology industry. On average, it takes at least a decade and billions of dollars to develop a new drug. But now, AI can predict how drugs interact with the body and reduce painstaking lab work … That's cutting down on both costs and development time. Not only does this help patients battling life-threatening illnesses, but it also bodes well for biotech stocks. Because bringing life-saving drugs to market quicker means achieving profitability even faster. Biotech Stocks: From Languishing to Thriving From June to October 2023, the Russell 2000 Dynamic Biotechnology Subsector Index plummeted 33%. With higher interest rates, companies starving for capital couldn't afford to raise it. Research and development of new therapies isn’t cheap! Once robust biotech initial public offerings were few and far between. Basically, investors turned their back on the sector. But then, the Federal Reserve indicated it was done raising rates, opening the door for new funding. And the sector has been on a tear since: [Turn Your Images On] Since October's low, the index has jumped 60% to highs it hasn’t seen since April 2022. Biotech stocks are back in vogue. With potential rate cuts in the near future and AI innovations happening at a rapid pace … these stocks are looking more attractive to buy. And there’s something else that will push these stocks even higher. --------------------------------------------------------------- [Turn Your Images On]( From our Partners at Banyan Hill Publishing. [Are You In? Join the $40 Trillion AI Energy Revolution!]( Discover the AI breakthrough that’s 4 million times more potent than oil. A single liter of AI Energy equals 29,000 barrels of oil. This "5th Epoch" of energy could lead America to 100% energy independence. Billionaires are already investing. Learn how you can be part of this monumental shift in global energy. [Secure Your Spot in the AI Energy Boom Now!]( --------------------------------------------------------------- The Most Important Letters in Biotech I’ve told you about AI and R&D, but I haven’t mentioned the most important letters in biotech — M&A. In the past, large pharmaceutical companies used mergers and acquisitions (M&A) to shore up and expand their pipeline of potential drugs. If a small biotech company's initial tests looked promising, Big Pharma scooped it up, banking on blowout profits in the future. AI has changed that game. Now, larger biotech companies (think Pfizer) are buying advanced technology, analytics and platforms to make drug delivery more efficient. [Turn Your Images On] It’s a big reason why biotech M&A activity in 2023 eclipsed $100 billion for the first time since 2019. Analysts project sector M&A will keep growing in 2024 and beyond because Big Pharma companies will lose patent protection for some of their most profitable drugs. Dedicated sales from those patented drugs — nearly $200 billion by some estimates — will be gone, and larger companies will look to acquire smaller ones to maintain those revenue streams. Larger companies will also use M&A to capitalize on technological advances in AI, genomics and precision medicine. This anticipated increase in M&A activity in biotech will be the “rising tide that lifts all boats” in the sector. A few big-dollar deals will push the broader biotech market higher. Bottom line: The biotech sector is one to keep your eye on for investment potential. Interest rates are coming down, and M&A activity is on the rise, which spells even more gains for biotech stocks. To find solid companies to invest in, turn to Adam O’Dell’s proprietary Green Zone Power Ratings system. (You could also check out his most recent piece in [Banyan Edge]( The system analyzes thousands of stocks to help you uncover those with the highest upside potential while minimizing your risk. It uses three technical (related to stock price and trading activity) — momentum, size and volatility — and three fundamental (financial and future prospect analysis) — value, quality and growth — factors to rate stocks from 0 to 100. The higher the rating, the greater the expected upside return over the next 12 months. I encourage you to take the Green Zone Power Ratings system for a test drive. It’s free to use at [www.MoneyandMarkets.com](. Enter a ticker, and our proprietary system will instantly show you if that stock will outperform from here. Until next time… Safe trading, [Matt Clark, CMSA®]( Chief Research Analyst, [Money & Markets Daily]( P.S. Adam sees a ton of potential in the biotech and genomics space. To see how you can gain access to his top recommendations in Green Zone Fortunes, his premium stock research service, [click here.]( --------------------------------------------------------------- [Turn Your Images On]( [A Tiny $10 Company With a BIG Secret]( Four of the richest men in the world have scrambled to invest in this breakthrough technology before it goes mainstream … and one tiny $10 stock is set to dominate it. [Click for details.]( --------------------------------------------------------------- [Turn Your Images On] Traders’ Message to the Fed: Keep Worrying Federal Reserve officials meet this week to consider whether it's time to cut interest rates. Earlier this month, Fed Chair Jerome Powell [told]( Congress: “We are waiting to become more confident that inflation is moving sustainably down to 2%. When we do get that confidence, and we’re not far from it, it will be appropriate to begin to dial back the level of restriction so that we don’t drive the economy into recession.” Bond traders aren't expecting inflation to fall soon. The chart below shows the five-year breakeven inflation rate, revealing what traders expect inflation to average over the next five years. The trend has been up this year, an indicator that traders believe inflation is more likely to rise than fall. This is bad news for those expecting a rate cut. — Mike Carr, Chief Market Technician, Money & Markets [Turn Your Images On] [(Click here to view larger image.)]( --------------------------------------------------------------- Check Out More From Money & Markets Daily: - [READY TO RIDE THE CRYPTO WAVE?]( - [BITCOIN'S 197% RALLY IS NOTHING COMPARED TO WHAT'S NEXT]( - [HOW YOU’LL KNOW THE MAGNIFICENT 7 PARTY IS OVER]( --------------------------------------------------------------- [Turn Your Images On]( Privacy Policy The Money & Markets, P.O. Box 8378, Delray Beach, FL 33482. To ensure that you receive future issues of Money & Markets, please add info@mb.moneyandmarkets.com to your address book or [whitelist]( within your spam settings. For customer service questions or issues, please contact us for assistance. The mailbox associated with this email address is not monitored, so please do not reply. 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Likewise, past performance is no guarantee of future returns. Certain investments carry large potential rewards but also large potential risk. Don't trade in these markets with money you can't afford to lose. Money & Markets permits editors of a publication to recommend a security to subscribers that they own themselves. However, in no circumstance may an editor sell a security before our subscribers have a fair opportunity to exit. Any exit after a buy recommendation is made and prior to issuing a sell notification is forbidden. The length of time an editor must wait after subscribers have been advised to exit a play depends on the type of publication. (c) 2024 Money & Markets, LLC. All Rights Reserved. Protected by copyright laws of the United States and treaties. This Newsletter may only be used pursuant to the subscription agreement. 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