Ray Blanco: This Is How To Beat A Trade War
The million-dollar question right now is…
“Will the bull market survive a prolonged, ugly trade war? Or are there other forces at play that are more important to investors right now?”
After months of negotiations and threats, the trade war between the U.S. and China officially kicked off last Friday.
Most experts insist this squabble is bad for both nations. It could even throw the global economy completely out of whack, they warn…
But the economy and stock market are two very different beasts.
While the Dow Jones industrial average continues to lag, investors are having no problem shaking off the trade war malaise and bidding up the market’s strongest sectors as earnings season approaches.
The major averages pushed into the green shortly after Friday’s opening bell and haven’t looked back.
The Nasdaq Composite took the lead, gaining more than 100 points Friday to close the week less than 1.5% from its all-time highs.
Despite the realities of an ugly trade war setting in, the bull charges on.
In many ways, it’s because of the red-hot biotech sector. Here’s why.
For starters, as the summer heat kicks into high gear, so has the FDA’s approval calendar.
We have 26 upcoming trial dates between now and Labor Day. That’s 26 potentially life-changing profit opportunities.
Within biotech, there’s an even hotter subsector… gene therapy companies.
These companies are making groundbreaking headway in combating the world’s deadliest diseases and ailments.
And with so many potentially lucrative offerings, all with built-in protective moats from any trade war nonsense, you’re in prime position for flash profits this summer.
For example, the SPDR S&P Biotech ETF (NYSE: XBI) has rallied off its lows and is now posting new all-time highs.
In terms of beating the major indexes, XBI is a clear winner compared with the Dow and S&P 500:
With risk appetite for biotechs growing, we’ve identified some great ways to lock onto this surge.
The ARK Genomic Revolution Multi-Sector ETF (NYSE: ARKG) looks to be a great way to gain exposure to biotech’s bull run.
The ETF’s top holdings include Intellia Therapeutics Inc., Illumina Inc. and Editas Medicine Inc.
Year to date, ARKG is up over 20%, and for the past 12 months is up over 32%.
Now ARKG shares are running again. Here’s the 5-day chart:
You could look at ARKG as a short-term trade for the summer, but the ETF could turn into a long-term hold if it can maintain recent momentum.
We’ll continue to grow our biotech watch list as more opportunities arise.
Either way, you’re well positioned for the next leg of the rally.
With 26 FDA trials coming this summer, you could expect several new profit chances to trigger in the coming weeks.
For Technology Profits Daily,
Chief Investment Expert