This story was originally published here.
Story Highlights:
- The coronavirus has paved the way for America 2.0 stocks to shine.
- One sleeper sector is poised to corner the coronavirus market as the crisis eases.
- Here’s an investment play that gives you 41 chances to corner the market in one shot.
The woman eyed me suspiciously, sizing me up like a thief in a dark alley.
Except that we were in Publix.
She’d caught me eyeballing the six bottles of bleach and five packs of toilet paper in her shopping cart.
Keeping one eye on me and one on her stash, she pushed past me without a word to grab the last bottle on the shelf.
Hoarding has become a way of life thanks to the coronavirus panic. And on a superficial level, the outbreak has boosted the fortunes of a handful of companies:
- Clorox Co. stock hit a 52-week high during last week’s market sell-off.
- Kimberly-Clark Corp., the paper company behind Scott and Cottonelle brands, has been stair-stepping upward this month and shot up 9% Friday.
- Even Campbell Soup Co. stock is up.
Now, the truth is that the gains for these companies are likely to be short term, triggered by the coronavirus panic. But others stand to bounce back and see sustained gains as the market — and the nation — recovers.
We’re already seeing the early indications of which sector will have the biggest rebound.
I’m talking about a “sleeper sector” that’s about to roar to life. It stands to gain the most from the “coronavirus effect” on the stock market.
Precision medicine.
This mega medical trend is at the forefront of developing new vaccines, tests and treatments for novel viral pathogens.
And with the uproar of the coronavirus outbreak, precision medicine is going to step into the spotlight as the public searches for a cure. Now’s the time to up your ante in this field, before COVID-19 sends it soaring.
The Biggest Winners for the COVID-19 Market Rebound
The companies that are embracing the rapidly growing precision medicine trend are already thriving:
- Moderna Inc. is leading the vaccine race — delivering the first coronavirus inoculation to the National Institutes of Health last week. Its stock price has shot up more than 33% since February 21.
- Gilead Sciences Inc. saw its stock rise 20% on March 6, after reporting early success in treating the coronavirus with its antiviral drug remdesivir, now undergoing clinical trials in the U.S. and China.
But these are just two of the companies that are creating a new era in health care.
They’re the poster children for the promise — and profitability — of precision medicine, which is producing cheaper, faster and more effective alternatives to what conventional Big Pharma can manufacture.
And what we’ve seen so far is just the beginning. This success will last well beyond the outbreak.
You know what that means from an investment perspective: There’s big money to be made investing in the new Big Medicine.
41 Ways to Win in 1 Innovative Buy
Except for my brief visit to Publix last weekend, I’ve spent most of the past two weeks working from home and researching the precision medicine market.
What I’ve learned is that, like past health crises, the coronavirus outbreak is leading to an evolution in our ability to contain future outbreaks.
New leading-edge techniques — including new gene-based therapies — are being fast-tracked and tested today in real time.
This is a step toward the new world of America 2.0.
I believe the best way to leverage precision medicine’s multibillion-dollar rise is to buy a basket of the best.
One exchange-traded fund (ETF) is filled with innovative biotech and genetic engineering companies. It’s the ARK Innovation ETF (NYSE: ARKK).
This ETF holds 41 stocks, all of which are in high-growth, new-world industries such as precision medicine, as well as electric vehicles, 5G, 3D printing and more. So, buying into this ETF gives you a shot at 41 ways to win — with just a single investment.
Keep in mind: Over time, stocks at the heart of the America 2.0 mega trends will outlast the current crisis. Weather the storm and position yourself to capitalize on the market rebound that will inevitably come.
By investing in precision medicine, you can not only help boost the global effort to eradicate the coronavirus outbreak, but profit from it as well.
But I have something even better for you than that…
My No. 1 Stock for 2020
My colleague Paul Mampilly is a Wall Street legend.
(Barron’s crowned his hedge fund as the “world’s best” and Kiplinger ranked it in the top 1%.)
But a few years ago, he left Wall Street.
“I just grew tired of helping the rich get richer,” Paul explains. “So I started sharing my No. 1 investment picks with Main Street Americans.”
And his No. 1 stock picks have been phenomenal.
In 2016, Paul’s No. 1 pick — Tableau Software — shot up 199%.
In 2017, Paul’s No. 1 pick — Foundation Medicine — shot up 524%.
In 2018, Paul’s No. 1 pick — Roku — shot up 393%.
In 2019, Paul’s No. 1 pick — MTech Acquisitions — shot up 332%.
But Paul believes his No. 1 stock pick for 2020 could go even higher.
And the reason why is causing quite the stir.
“It’s a $10 stock that could climb in the days ahead,” he says during a recent interview. “It’s a company that will help the Dow to 100,000.”
Yes, you read that right.
He said: “Dow 100,000.”
If you think that sounds extreme, you’re not alone.
The host of the interview doubted Paul’s prediction, despite knowing that Paul correctly predicted every major market turn over the last two decades.
Then Paul did the unthinkable.
He showed the host one chart … a chart so powerful it silenced his critics.
(Click here to see the chart Paul showed during the interview.)
Paul says: “As you can see, it’s not just the Dow that could climb to 100,000. Real estate will double. That’s why I call this new era America 2.0. And this company is at the forefront of it all. The stock is a steal at $10.”
