| Three Major Bullish Factors to Keep in Mind…
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Have you ever heard of an "economic super convergence"? 
I hadn’t either until I spoke with Dr. Nomi Prins… But that’s how she’s describing what she’s convinced is about to happen for many stocks. Now because of THIS breaking news… Dr. Prins told me her prediction could happen way FASTER than originally expected. | |
 Lou Basenese
Editor and Founder, Trend Trader Daily
Dear Wall Street Daily Reader, A few days ago, I responded in a cheeky fashion to the haters about the recent underperformance of small- and micro-cap stocks. (It’s a must-read. So if you missed out, you can catch up here.) Today, we’re turning our attention to another investment I’ve been super-bullish on for the last year: biotech. Just like small- and micro-cap stocks, biotech’s been suffering through a slowdown. But as you’ll see in a moment, there’s no reason to panic (or sell) here, either… Recommended Link
Look Out Below! In case you didn’t notice, the major biotech indexes have been selling off sharply since early February. 
(click image to enlarge) Furthermore, the smaller the company, the more severe the sell-off has been. Consider: - The large- and mega-cap biased iShares Nasdaq Biotechnology ETF (IBB) has been down as much as 13%.
- The SPDR S&P Biotech ETF (XBI), which has more exposure to small- and mid-cap biotechs, has been down as much as 24% — nearly double the drawdown for IBB.
- And the smallest biotechs are down roughly double that amount, about 50%.
But don’t fret. Here are three major bullish factors to keep in mind… Fundamentals, Financings, and Seasons First, for the majority of biotechs I’ve been recommending, nothing has fundamentally changed for the worse. If anything, the fundamentals keep getting better. And eventually, the stock prices will reflect this reality. Or as famed value investor Benjamin Graham noted, “In the short run, the market is a voting machine but in the long run, it is a weighing machine.” 
Second, venture capital funding for biotechs, a key leading indicator, remains at record levels. In fact, U.S.-based biotechs raised a record $12 billion in venture funding in the first quarter, according to Pitchbook. Even more impressive, that marks the fourth quarter in a row of chart-topping funding. We couldn’t ask for a more robust and bullish funding environment for innovation in biotech. Third, we’re about to enter a historically strong performance season for biotechs. As you can see in the chart below, biotechs have surged pretty much every April/May through July for five years (and counting): 
(click image to enlarge) In other words, the old market adage to “Sell in May and Go Away” should never be applied to biotechs. Remember, the chart above is for the major biotech index, which represents the average seasonal rally in biotechs for mostly large- and mega-cap companies. That means, when the seasonal biotech surge hits again, we can expect our small- and micro-cap biotechs to rally way more. That’s not merely hopeful talk, mind you. I’m betting on it with my own money, too. And in upcoming updates, I’ll share what companies I’m betting the most on. Recommended Link
Performing Over Time So stay tuned… Stay calm… And remember what market-beating value manager Robert Olstein says (emphasis mine), “The desire to perform all the time is usually a barrier to performing over time.” The investments we focus on here are designed to perform over time, not all the time. In fact, many have already performed — and based on my research, I have full confidence that the others will eventually perform, too. So, any other (cheeky) questions for me this week? 
Ahead of the tape, 
Lou Basenese
Editor and Founder, Trend Trader Daily And now, an exclusive offer from our friends at Trend Trader Daily. Please note, Trend Trader Daily is not affiliated with Paradigm Press. P.S. Before I go one last thing… He hasn’t tweeted this out just yet… But he’s been hinting at it again and again… And any day now (as soon as July 1st if my research is correct)... Elon Musk is going to send one new technology sky-high. It’s called VLEO. And it could change the face of the entire globe. According to my research, VLEO could: - Connect over 3 billion people on the planet…
- Slash your cable bill by up to 98% (and put giant, extortionate telecom behemoths like Verizon and Comcast out of business in the process!)…
That’s the date when I believe VLEO will hit a crucial tipping point. All thanks to Elon Musk himself. To get all the details… As well as a way to position yourself AHEAD of Elon’s big move… Click here now »
Louis Basenese is a professional investor, and one of the country’s leading technology analysts. He’s spent the past 20 years analyzing emerging technologies, and developing a proven methodology to consistently profit from them. Lou began his investment career at Morgan Stanley, where he was eventually tasked with directing over $1.5 billion in capital. Based on his proven track record as a financial analyst and investor, Lou became a television commentator on Fox Business and CNBC, and a market expert in the pages of The Wall Street Journal and Business Insider. But ultimately, Lou found he preferred helping Main Street investors like you. By providing ordinary investors with extraordinary research, he discovered that he can help his readers change their financial futures, and change their lives for the better. And that explains why he recently launched Trend Trader Daily. With this new service, Lou can share his research with you on groundbreaking new technologies and emerging sectors — well before he shares this information with the general public on TV, the internet, or anywhere else. So what's one of Lou's top recommendations for right now? Click here to see what he's recommending you do to profit in 2021 and beyond... | 
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