Paul Mampilly wants to tell everyone that the market is experiencing a rejuvenation. The rally is being “rejuvenated” because it is happening in a sector that several investors have forgotten about in the recent past. Now, this sector is presenting some extraordinary opportunities, and investors with the most money are aware of it. They’re not just aware of it; they are anxious to be involved in it!
This level of fear has often been seen in the past, as investors who are deeply entrenched with what they know are confronted with an industry they don’t understand. This can often cause them to react fearfully, avoiding it out of anxiety that they won’t be able to predict its path and as a result will end up losing as a result. But the key to smart investing is to find opportunities that are overlooked by others, and there may be one of the greatest overlooked opportunities in investing hiding directly under investors’ noses at this very moment. The key is being one of those investors wise enough and brave enough to get involved now, before it’s too late. So what is this neglected industry that’s poised to make massive waves in the world of investing?
Paul Mampilly is telling us that this previously neglected area is “biotech.”
Paul Mampilly knows what he is talking about because he holds a special place in the history of Wall Street. When he started his career on Wall Street in 1991, he was an assistant portfolio manager for Bankers Trust. He quickly advanced and made a name for himself at ING and Deutsche Bank where he had the chance to manage accounts worth millions of dollars. He was able to be so successful despite his relatively new status in the market that he quickly began to receive offers from other firms eager to enlist his services. He became a bit of a wunderkind on the scene, establishing himself with prudent investments and a safe yet bold approach that led incredible returns for himself and for the firms that hired him to manage their portfolios.
That’s when executives with Kinetics Asset Management came calling and asked him to manage their hedge fund, and Paul’s talents really began to shine. He increased the company’s assets to $25 billion, and Barron’s named the hedge fund one of the “World’s Best” because he earned 26 percent annual returns. This was all achieved while avoiding risky bets and focusing on smart investments with a high rate of return. This became Mampilly’s trademark as he continued to rise into the stratosphere of Wall Street investors, creating a name that would far outlast his early successes to become a major institution in the market. He now spreads his knowledge and love of the world of investments through articles on Banyan Hill Publishing as well as his own personal newsletter to thousands of subscribers.
The Templeton Foundation invited Paul Mampilly to participate in its prestigious investment competition, and he started with a $50 million account. In two years, he had managed to generate a 76 percent return, and in the end, the account had grown to $88 million during the 2008-2009 financial crisis. This incredible achievement was made more impressive by the fact that Mampilly was able to do this without any short-term or risky betting, instead focusing on lasting portfolio building to grow the firm’s value by an amazing margin in one of the most volatile periods in the history of the U.S. stock market. Since then, Mampilly’s place in the market has been secured, and he’s now turned his attention away from helping the ultra-wealthy become even wealthier to focus on helping those who might be new to investing getting a handle on where they can find the strongest opportunities to get major returns. It’s this interest that led Mampilly to the biotech industry in the first place.
There has been movement in the biotech industry, but it has been “behind the scenes,” and this means that an enormous rally is about to take off in the biotech sector. This is a common trend in the world of investing. Here’s how it usually goes— a company or industry begins to make serious progress, but it’s initially ignored by large firms and investors because they’re so focused on what they already know. Then, enough time and attention occurs that these big names suddenly see the potential and jump into the investments. The stock prices go up, and the industry becomes a major player. But Paul believes there’s an opportunity to beat these major players to the punch. He believes that biotech is set to explode, and the right time to get involved is right now before major investments begin to drive up stock prices, reducing the potential rate of returns. There are four major signs that Paul is telling the truth, but most of the investors on Main Street are not paying any attention to them.
The four signs mean one very important thing to Paul Mampilly:
Investors with a lot of money to invest are willing to put it into biotech, but we are going to get there before they do.
Paul is going to discuss these four clues in his Bold Profits Daily, and he will also tell you why you need to get in on the action right now so that you don’t miss the rocket that is about to take off. But first, in this article we’ll use his expertise to learn more about the biotech industry as a whole and why it’s poised to explode as one of the hottest properties on the stock market. Mampilly is a firm believer in thorough research, and he’s developed a long list of factors that make biotech an incredible bet as we move further into 2019 and beyond. Read on to find out more and avoid missing out on one of the soon-to-be-hottest investments on the market.
You might be wondering whether the biotech industry is an entirely new opportunity. But the fact is that biotech has been around for several years, and has had its moments in the spotlight as its continued to grow and develop. The biotech industry was extremely hot in 2013, 2014 and 2015. Some people even made 1,000 percent returns on these stocks. Recently, Paul Mampilly has been seeing insiders purchase large and small stocks, and the result has been that these stocks were moving up very slowly. Most people haven’t noticed that this is happening. Why? Because as we mentioned, investors tend to focus on what they know and what they’re familiar with in the world of investing. They see a relatively new industry and assume there’s major risk involved. They overlook the steady gains that are taking place in favor of focusing on their established portfolios or growing in industries they recognize and understand.
Now, what’s happening in biotech stocks is beginning to be known. Last week, Bristol-Myers purchased the bio-pharmaceutical company Celgene for $74 billion, and those who had money in Celgene made a 30 percent profit overnight. Those who have Bristol-Myers stock will also benefit from the deal because it was such a good deal. In December, GlaxoSmithKline paid $4 billion for the pharmaceutical company Tesaro, and Tesaro shares shot up by 70 percent in one day! All of this means that these major players are starting to stand up and take notice. Soon, there will be a massive wave of investors jumping onto the rising tide of biotech. This will mean rising stock prices, and smaller investors will soon have missed their chance to get in when prices are low and ride the wave themselves. So how can you avoid missing out and make smart biotech investments now while they’re here?
In addition to the examples above, Wall Street sold 51 IPOs while many people have been despondent over the state of the stock market. All of these examples are telling. They show that the main core of Wall Street is continuing to overlook the power and potential of biotech. Dozens of IPOs don’t move the needle of attention, which means that people everywhere are underestimating and undervaluing this industry to an almost criminal degree. The good news? This is the perfect condition for smart investors to slide in and make wise investments while the industry is being overlooked on Wall Street.
Paul Mampilly thinks that everyone needs an ETF.
The ETF that Paul is focusing on and recommending is an ETF that will introduce you to companies like Celgene. The ticker signal for this particular NASDAQ Biotechnology ETF is “XBI.” This ETF has the potential to move more than others because equal weight is being given to each company. Other ETFs give the larger companies more weight than the smaller companies. So, if a small company is the one that increases by a significant amount, the entire ETF goes up. This is a great move, as many of the smaller biotech companies are the ones with the most to gain. These rapidly growing and lean companies are focused on aggressive growth and expansion, and that bodes well for the XBI stock that will help supercharge portfolios.
Paul Mampilly takes all of the guessing out of the stock market with his service “Extreme Fortunes.” Subscribers will be introduced to small biotech companies that are about to increase by 300 percent, 500 percent or even 700 percent. This powerful tool is designed to take guesswork out of investing, as Mampilly has spent countless hours researching and assessing the positions of a wide range of biotech companies at various stages of their journey. He’s compiled all of that research and data into one unified service designed to put the knowledge in the hands of everyday investors.
People who already subscribe to the Extreme Fortunes service already know that the best-performing stocks are in the biotech sector. Those who do not subscribe to the service can get in on this trend by purchasing SPDR S&P Biotech ETF. This ETF also uses an equal-weighted strategy where equal weight is placed on the small biotech companies and the larger biotech companies. As we mentioned, this is a powerful way to ensure that a rising tide lifts all of the boats in your biotech industry investment group.
Eli Lilly announced that it would purchase Loxo Oncology last week for $8 billion. This is the largest acquisition of its kind, and it caused the SPDR S&P Biotech ETF XBI to rally 6 percent and the NASDAQ Biotech ETF IBB to rally 3.3 percent since the company made the announcement. These are just a few of the signs that biotech is set to explode in the near future, and companies featured in these stocks are all but guaranteed to provide massive and impressive returns the likes of which you’ve never seen before.
These investments appear to be similar, but they are very different. They both contain ”biotech” in their names, but what is inside is what matters. The IBB is known as a “market cap weighted index,” so large companies are given more weight. The top 10 companies add up to 56 percent of the weighting, but there are 225 companies in the index.
In contrast, the XBI is a “modified equal weight index,” and a majority of the 120 companies have weightings of only one or two percent. The top 10 companies in this fund only comprise 15 percent of the fund.
In the middle of 2018, the market was rising at an accelerated rate, and the XBI that gives each company equal weighting outperformed the IBB. The bad news is that small stocks suffer when the market begins to decline because investors sell these stocks at greater rates than the larger ones. Therefore, the IBB outperformed the XBI at that time.
The choice that Paul Mampilly would suggest you make would be to purchase stocks within the equal-weighted index so that you will have broad exposure for your investments.
The healthcare industry is subject to new regulations, and the regulation of drug prices has the biotech and pharmaceutical industries concerned. These industries have even delayed raising drug prices because they did not want to be seen as the cause of the increases. Some of these companies even pledged to refrain from raising their prices until the end of last year. These companies included Eli Lilly, Amgen, Allergan, Novartis, Johnson & Johnson, Bristol-Myers Squibb, Merck and Pfizer.
During the presidential campaign, candidate Donald Trump expressed his agreement for giving Medicare bargaining power, and the democrats were in favor of offering it, but President Trump did promise to lower drug prices. The concern is that President Trump may join with the democrats and offer the bargain to Medicare, and this is expected to hurt biopharma’s valuations. It seems that we don’t need to worry about this occurring at this time because President Trump has not mentioned it recently and his party is against it.
Even so, the price of drugs is a bipartisan issue, and both sides are expected to come up with new ideas on managing it. As a matter of fact, Health and Human Services has introduced its proposals for managing increases in drug prices. One of those proposals is to remove drugs with rapidly increasing prices from guaranteed Medicare coverage.
This year, we have innovative drugs to look forward to with the FDA approving new drugs at a record pace. So, it seems that biotech stocks are expected to enjoy a good year this year.