Year in Review in 7 Charts: Biotech Boom 2.0

You're receiving this email as part of your subscription to Trend Trader Daily. [Unsubscribe here](. Year in Review in 7 Charts: Biotech Boom 2.0 By Lou Basenese Friday, January 1, 2021 Happy New Year! And welcome to the final installment of our [Year in Review in 7 Charts](. As you’ll see in a moment, we’re ending on a familiar and profitable note: biotech. Longtime readers know I predicted the sector would be the top performer in 2020. Before Covid-19 even hit. And that prediction proved to be right. In spades. For proof, look at the performance of the SPDR S&P Biotech ETF (XBI) versus the rest of the market. Coming off the March lows, it surged more than 125%, almost tripling the rally of the S&P 500 Index. My Biggest Personal Investment for 2021 Of course, I’m not writing to say I told you so. Instead, I’m writing to tell you again: biotech is going to be the top performer in 2021. Why? Because as I’ve shared before, the pandemic brought about a permanent shift in investor sentiment for the sector. It’s now become vital to survival. Literally. And that’s not going to change anytime soon. On a more strategic level, I’ve shared with you the first requirement to be a successful trend trader: You need to follow the “smart money” to identify a burgeoning trend before it’s obvious to the rest of Wall Street and Main Street. Well, we did that with biotech in late 2019. And that brings us to the second requirement: riding the momentum of a trend for as long as it lasts. And when it comes to biotech, there’s no signs of it letting up: The major sector indexes are breaking out to new all-time highs, and big pharma is paying higher and higher triple-digit premiums to acquire upstart biotechs. Bottom line: I already told you to overweight [small- and micro caps]( going into this year. But if you want to super-charge your profit potential in 2021, you should overweight small biotech stocks. I’m convinced they’re going to repeat their chart-topping performance from 2020. So much so, I’m allocating the largest percentage of my personal portfolio to the sector. Ahead of the tape, [Lou Basenese] Lou Basenese [Terms & Privacy](| [Unsubscribe]( 301 S. Perimeter Park Dr. Suite 100 Nashville, Tennessee 37211 RISK NOTICE: All investing comes with risk. That includes the investments teased in this letter. You should never invest more than you can afford to lose. Please use this research for the purpose that it's intended — as research only. You should consult a professional financial advisor before ever taking a position in any securities you see herein. SECURITY HOLDING NOTICE: Although we are never compensated from any companies for coverage, you should be aware that Trend Trader Daily, its authors, its owners, and its employees may purchase, sell, or hold long or short positions in securities of the companies mentioned in this communication. While authors might actively transact in the securities mentioned, they will always have a net position that is consistent with the position set forth in our research reports, letters and updates. DISCLAIMERS: The work included in this communication is based on diverse sources including SEC filings, current events, interviews, corporate press releases, and information published on funding platforms, but the views we express and the conclusions we reach are our own. As such, this content may contain errors, and any investments described in this content should be made only after reviewing the filings and/or financial statements of the company, and only after consulting with your investment advisor. Actual results may differ significantly from the results described herein. Furthermore, nothing published by Trend Trader Daily, Inc should be considered personalized financial advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investment advice. Trend Trader Daily is an independent provider of education, information and research on publicly traded companies, and as such, it accepts no direct or indirect compensation from any companies or third parties mentioned in any of our letters, reports or updates. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -