The lottery ticket tech sector

TomAndersonWhile the S&P 500 (the benchmark representative of the overall market) has gained 5.1% since January, the Standard and Poor’s biotechnology index has shot up 13.6% in the same time frame.

This gain, in part, has caused Federal Reserve chairwoman Janet Yellen to call the biotech sector, “substantially stretched.”

However, better data coming out of these biotech companies says something to the contrary, and further explains why biotech stocks can be your lottery ticket…

Biotechnology is booming right now, as 53 companies have announced public offerings this year. That is an increase of 175% and 43% year over year.

For many people, numbers like that make it very easy to worry. It’s common sense; in the market, if something goes up, it must come down at some point.

But this situation for biotechnology isn’t a common one. And the reason for its uniqueness is data.

Now, the increase in the quality of data is allowing the savvy investor to use the numbers much more than gut instinct, which allows for much better decisions.

So the big gains in biotechnology aren’t just due to people blindly throwing money at stocks because they think a product might be a game changer. Instead, investors are looking at the data, getting to see which products and innovations have a good chance of catching on, and placing their money smartly.

But while these leaps in biotech may be well founded, biotech stocks can still be tricky investments. Much of the time, you will be dealing with young companies with all of their eggs in one, experimental basket.

Just as with any investment, it is important to study, research, and observe a stock before deciding to invest in it. With biotech stocks, this element of study just becomes more important.

The exciting part of all of this is that biotechnology stocks have the best chance to skyrocket. Brilliant innovations and earth-shattering breakthroughs are in the works right now—we just have to identify them early enough.

You can do so by learning the skills taught in our Stock Code Breaker course, or you can let me do this for you by joining my Tech Stock Jackpot service.

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