What would you do with $1 million in cash?... How to access over a dozen great stock ideas for free... A new opportunity to earn 'Bitcoin-like' profits today... Why you'll probably pass on one of the greatest wealth-building opportunities of your life...

We begin today's Digest with a question...

What would you do with $1 million in cash?

If you saw an extra $1 million in your bank account this evening, what would you do with it?

This cash comes with no strings attached and it was earned or won on the "up and up." You don't have to worry about somebody coming after you and the money. It's yours.

Maybe you're like me (Justin) and you'd keep most of it where you found it: in the bank. You'd see it as another layer of financial freedom.

Maybe you'd quit a job you don't like. Maybe you'd buy a lake house. Even in today's world where the media constantly talks about billionaires, $1 million is still a lot of money... and it can do a lot of things for you.

Please keep that thought in your mind while we discuss the hugely popular event that took place earlier this week...

I'm referring to the presentation Matt McCall – senior editor for our corporate affiliate InvestorPlace – just shared with my colleague Jared Kelly on Wednesday night. The presentation is generating a huge amount of buzz in our industry.

As we've mentioned in previous communications, Matt is a successful growth investor. He's known for identifying innovative trends and picking stocks years before they shoot up 10 times or more. In the last decade alone, he's picked more than 200 triple-digit winners, plus more than a dozen stocks that have returned at least 1,000%.

During the presentation, Matt revealed his eight favorite 'hypergrowth' trends to be invested in over the next decade...

He says these industries have extraordinary upside... the kind of upside the Internet and the telecommunications industry had in 1993.

If you have some free time, I urge you to view his presentation. In addition to covering how these select industries are set to enjoy hypergrowth, he shared more than HALF A DOZEN actual stock ideas.

This kind of information often sells for $1,000 or more. But we arranged for attendees to get it for free.

Matt believes investors will make a fortune in each of these industries over the next several years...

But there's one he is especially excited about today.

You see, he says this industry doesn't have "just" 10-fold growth potential... and not "just" 20-fold growth potential... or even 50-fold growth potential.

This industry has 100-fold growth potential.

That's no joke... and no misprint. Matt believes this is one of the greatest early stage investment opportunities of our lifetimes. And you can learn all about it in a moment.

But first, let me warn you...

You probably won't take advantage of this opportunity.

That's because this opportunity looks a lot like Bitcoin did back in 2016... or like cannabis stocks did in 2015.

As you surely know, Bitcoin skyrocketed in value in 2016. It gained 123% during that year. Then, Bitcoin went "moonshot" in 2017 and gained more than 1,400%. Other cryptocurrencies skyrocketed even more. Folks who took modest stakes in cryptocurrencies made millions.

However, very few people who learned about Bitcoin in 2016 actually took action and bought it...

That's because the idea of owning Bitcoin was well outside of the average investor's comfort zone. It was incredibly speculative. Even professionals – including many of my colleagues here at Stansberry Research – wanted nothing to do with it.

Now, let me be clear: I'm not saying YOU should've bought Bitcoin. The fact is, these kinds of speculative opportunities aren't right for everyone. And they're certainly not for your rent money.

But folks who could afford to speculate – and who had the guts, imagination, and unconventional thinking to do so – had an opportunity to earn life-changing gains.

The same goes for cannabis...

As regular readers know, a wave of cannabis legalization has been sweeping across North America over the past several years. And this wave has already produced one of the greatest wealth creation events of our lives.

It has sent dozens of cannabis stocks up 2,000% or more. Some cannabis stocks, like market leader Canopy Growth (CGC) have climbed more than 20,000%. That kind of gain can turn every $5,000 invested into over $1,000,000.

However, very few investors have actually participated in the great cannabis bull market to date. The idea of speculating on cannabis stocks was too far outside of their comfort zones.

Just like Bitcoin, it took guts, imagination, and unconventional thinking to take even a small position in these stocks. But those who took action have already had the chance to turn modest sums into millions of dollars.

Matt says that's exactly the kind of potential this industry has today...

If you've been a Stansberry Research reader for long, you probably won't be surprised to hear where this opportunity is located.

But again, a warning: Most folks will miss this one. And that's OK... It's may not be right for you.

But if you can afford to speculate – and you have the guts, imagination, and unconventional thinking necessary to step outside your comfort zone – then I encourage you to learn more. If Matt is correct, this opportunity could literally change your financial life forever.

While I could detail this situation for you, there's no one who can show you what is about to happen better than Matt himself. You'll find his commentary below.

As you read it, I urge you to keep in mind what it took to make life-changing gains in Bitcoin and cannabis stocks: guts, imagination, and unconventional thinking.

Here's Matt...

How to Get in on the Ground Floor of an Industry Set to Grow More Than 100-Fold

By Matt McCall, Senior Editor, InvestorPlace

Sometimes, investing is complicated.

Wall Street hedge funds and banks can create all kinds of complex investments and strategies that only a math genius can make sense of.

However, sometimes making great investments is laughably simple. That's the situation with the industry I'll share with you today.

The big opportunity here boils down to just one number...

116.

Specifically, 116-fold growth is the amount of growth the Chinese government has planned for its biotechnology sector over the next two years.

In 2017, the Chinese government announced that its domestic biotechnology sector should make up 4% of the country's gross domestic product ("GDP") by 2020.

The Chinese economy is projected to reach roughly $15.7 trillion (as measured by GDP) by then. As of 2017, the revenue generated by China's domestic biotech industry was only $5.4 billion, according to Goldman Sachs.

In order for China's biotech industry to make up 4% of the economy (or $628 billion) by 2020, the industry must increase its sales 116-fold.

Is this even possible? I'll tell you what I think – but first, you need to understand that China has a history of achieving tremendous growth in very little time... leading to hundreds-of-percent returns – even thousands-of-percent returns – for savvy investors.

You see, China is well-known for its large and growing capitalist – yes, capitalist – economy. In the 1970s and '80s, China was extremely poor and undeveloped. But thanks to capitalism, China is now the world's second-largest economy.

China puts its own unique twist on capitalism. Although the country is technically capitalistic, it's also authoritarian. The Chinese government exerts a LOT more control over the economy and its domestic companies than the U.S. government does. To allow its domestic companies to grow, the Chinese government often blocks U.S. companies from doing business or gaining influence inside the country. (Google and Facebook are not allowed in China, for example.)

China also likes to create "national champions"... huge companies that have the implicit backing of the Chinese government. Competing with China's "champions" inside China is extremely difficult and often impossible.

For decades, China focused on growing its "basic" industries like manufacturing, mining, oil, shipping, and infrastructure building. But now, the Chinese government is set on fast-tracking high-tech industries like artificial intelligence, autonomous vehicles, electric vehicles, e-commerce... and biotechnology.

China wants to compete on the highest levels – and dominate – all the critical industries of the future. This includes having a huge domestic biotechnology industry that develops and sells the medical treatments and therapies of the future.

The Chinese Government Has a Heck of a Track Record

When the Chinese government says it's targeting one of its domestic industries for massive growth, it pays to listen. The country's track record of creating huge returns for investors is impressive...

For example, starting in the late 1990s, the Chinese government went on an infrastructure building spree. It built dams, bridges, cities, power plants, highways, and ports on a scale never seen before in history. All that building consumed an incredible amount of natural resources like oil, coal, copper, cement, and iron ore.

The big Chinese oil firm PetroChina was just one of the winners during the infrastructure boom. PetroChina literally helped fuel China's massive growth... And the stock grew 17 times from its initial public offering ("IPO") in 2000 through its high in 2007.

If you think that's impressive, take a look at Anhui Conch Cement. The cement company's stock was trading at a mere HK$0.17 per share in early 2000, and today it is around HK$47.50 per share. That's a 280-bagger!

Or consider the results of China's push to create a strong domestic technology sector. This push began about 10 years ago.

One of the companies that enjoyed government support during that time was a little-known firm called Tencent. Tencent gathered assets and extended its influence into many aspects of China's economy. Today, Tencent is one of the largest companies in the world. The stock rose an eye-popping 67,000% from its IPO in 2004 through January 2018.

From an investing point of view, overzealous government spending in China is a good thing. Even if the goals are too lofty, there is no denying the power of the Chinese government to boost an entire industry and related stocks.

Now you see why I paid close attention when I learned how strongly the Chinese government is pushing its biotech industry.

It is determined to put the industry on the same level as U.S. biotech... and do it in just a few years. This will require the Chinese biotech industry to grow more than 100-fold.

I believe the Chinese government's public-relations team got carried away by saying it wants this level of growth by 2020. I think five to seven years is more realistic.

But 100-fold growth in even 10 years will make the Chinese biotechnology sector one of the greatest growth stories in modern history. I'm willing to be patient for life-changing returns.

Especially because there are many catalysts that will drive Chinese biotech stocks much higher...

The Catalysts That Will Drive
Chinese Biotech Stocks Much Higher

Here are my top five...

Catalyst No. 1: China's Version of the FDA

The National Medical Products Administration of China ("NMPA"), the country's version of the FDA that approves drugs, medical devices, and cosmetics, has transformed itself. It's now on par with its peers in the U.S. and Europe. That opens the door for the rest of the world to take Chinese biotech seriously – and for approved drugs in China to spread quickly.

Catalyst No. 2: Demographics

China's massive population of nearly 1.4 billion people unfortunately means greater numbers of people who are sick. Twenty percent of the world lives in China, but it has 30% of all cancer patients, so the government is funding massive research into cancer treatments. China's population is also aging. Given the huge need for drugs over the next decade, simple economic theory points to a big boom in Chinese biotech.

Catalyst No. 3: Technology

The increasing use of artificial intelligence ("AI") in health care will lead to medical breakthroughs. With more access to gene-sequencing data, AI computers will be able to create drugs faster. China could be the best positioned country in the world because cutting-edge AI technology feeds off data, and China has vast amounts of health information on its citizens with its looser privacy laws.

Catalyst No. 4: Local Governments

Local cities and territories in China are trying to attract biotech firms. Think about the wealth that Silicon Valley created for surrounding areas in the U.S... It's no wonder cities are already throwing out big incentives to Chinese biotech firms to set up shop in their area.

Catalyst No. 5: Diversifying the Economy

Beijing has said it wants the pharma and biotech industries to lead China's growth in the future. By depending less on export-driven manufacturing, the country should be able to achieve a bigger economic boom domestically.

This shift is happening. The important question is how we'll take advantage of it as investors...

Building Our Own China Biotech Basket

One of our favorite strategies in my Early Stage Investor service is what we call our "buy a basket" strategy, which is like building our own exchange-traded fund ("ETF"). This is a must for the Chinese biotech sector.

As you know, an ETF is a diversified investment fund that trades like a stock. Most hold dozens or hundreds of different companies. So they can lower your risk by giving you diversified exposure to a sector or country.

However, because ETFs typically hold so many stocks, an ETF buyer is virtually guaranteed to end up owning a lot of average companies (and even some crappy ones). You get the bad with the good.

On the other hand, if you want to profit from a big business or technological innovation, you can try to buy one single stock. That can pay off massively. But it exposes you to significant downside risk.

That's why I like taking the middle-of-the-road approach when possible... which is "buy a basket."

When I say "buy a basket," I mean pick three to six of the best companies in a sector and buy all of them.

By purchasing a handful of the best companies, you avoid owning the weak players. It's a smart way to invest in big themes that gives you an excellent balance of risk and reward.

The upside potential of the Chinese biotech sector is difficult to quantify, but you can see that it's big. If you are able to pick the few companies that create the next blockbuster drugs, the gains could be 50X your original investment.

I would say it's like getting into U.S. biotechs in the mid-1990s. Just as an example, you could buy drug company Amgen for $5 per share at that point, and today it is trading around $175. That 35X return turns a $5,000 investment into $175,000.

Here's another way to grasp some of the upside potential. Amgen has a $107 billion market cap and did $23.7 billion in sales in 2018. China's rising biotech companies could generate similar sales in the next decade. We can buy these stocks when they are valued at $2 billion-$4 billion.

The basket approach has worked well in the past with biotech stocks, too. From the mid-1990s through the high in 2015, the Nasdaq Biotech Index was up 28-fold.

Like Stansberry Research's Steve Sjuggerud, I'm extremely bullish on China...

The Chinese government wants to dominate biotechnology and health care over the coming decades. My suggestion is to take it at its word... and own a basket of the best Chinese biotech stocks. It's one of the top "early stage" opportunities around.

The all-powerful Chinese government wants to make you rich. Let it.

Editor's note: Matt's "10X strategy" extends far beyond China... During Wednesday night's presentation, he detailed seven other "hypergrowth" trends he's incredibly bullish on today. If you missed it, you can still view a full replay right here. But don't delay... this presentation will only be available for a limited time.

New 52-week highs (as of 8/1/19): CBRE Group (CBRE), Corteva (CTVA), Western Asset Emerging Markets Debt Fund (EMD), NovaGold Resources (NG), Nestlé (NSRGY), ResMed (RMD), and Vanguard Inflation-Protected Securities Fund (VIPSX).

So, did Matt convince you? Do you have the "guts" to speculate on a Chinese biotech boom? We'd love to hear from you at feedback@stansberryresearch.com.

Regards,

Justin Brill
Baltimore, Maryland
August 2, 2019