Sjug: This Trade Has 'Hundreds-of-Percent Upside Over the Next Year or So'
Editor's note: Tech stocks soared during the last "Melt Up."
But the biotech sector absolutely dwarfed those gains, soaring nearly 500% in less than two years.
As True Wealth Systems editor Steve Sjuggerud explains in today's Masters Series essay – excerpted from the September issue – investors have a chance at similar returns this time around. And Steve says the next boom is already getting underway...
Sjug: This Trade Has 'Hundreds-of-Percent Upside Over the Next Year or So'
As I explained in yesterday's essay, the next biotech boom is already getting underway.
Let me quickly show the data that proves it...
For the first time in years, biotech stocks are outperforming. This is big news.
Last month, I told readers that the next stage of the Melt Up was here, in part because the Nasdaq Composite Index was finally outperforming the overall market.
We see the same thing happening in biotech stocks.
In recent months, they've outperformed the overall market and the Nasdaq...
Stocks, in general, have been booming in recent months. They're near their all-time highs, jumping 11% since early May.
Meanwhile, tech stocks – as measured by the Nasdaq – broke out to a new high much sooner back in June. They've jumped 13% over the same period.
But biotech has beaten them both. It hasn't hit a new all-time high yet. But it's getting darn close. It's up 17% over the past four-plus months.
This big outperformance is exactly what we saw at the start of the last Melt Up...
Tech and biotech stocks both began outperforming the S&P 500. Biotech stocks kept a lead over the Nasdaq most of the way... and then soared to incredible heights in the final few months.
More recently, the biotech sector has been on an interesting trajectory...
It had a massive boom heading into 2015. The sector soared for years... and we pocketed huge gains in TWS as a result. Take a look...
Biotech stocks soared roughly 400% from mid-2010 to mid-2015. It was an absolutely fantastic run... followed by a fantastic crash.
You can see it on the right side of the chart. The sector fell nearly 40% from mid-2015 to mid-2016. And that was during a time where the overall market was roughly flat.
Biotech stocks didn't bounce right back, either. They spent the next year slowly grinding higher. And they've been roughly tracking stocks since then.
That is, until now.
I believe we're on the verge of a setup similar to what we saw in the last Melt Up. And fortunately, the TWS computers agree.
They recently flashed "buy" on the biotech sector, in part because of this major outperformance.
We have followed our biotech system to massive gains in the past... and we want to do it again right now. Here's why...
How We Could Make Hundreds-of-Percent Profits in Biotech Now
It's all about the uptrend. And we've got it in biotech stocks now.
The TWS computers are always looking for big opportunities. And they see one today in biotech stocks.
Like I said earlier, the TWS computers flashed a new buy signal on the sector last month. And our system for biotech stocks is one of the most powerful ones we track.
This isn't just back testing, though. We've successfully put our biotech system to work in TWS.
We've recommended six biotech trades since we launched TWS in 2011. You can see the details for all of these in the table below...
We made big profits during the recent boom in biotech stocks. But our last few trades haven't worked out.
Your gut might see that and tell you to sit this one out. Don't make that mistake.
The pieces are in place for us to make massive gains in biotech stocks right now. It's the best "at bat" we can take right now, with the Melt Up underway.
Remember, the TWS computers focus on finding the best opportunity. They find the uptrend. And right now, they're pointing to biotech stocks.
The sector was a top performer during the last Melt Up. It returned more than double the return of tech stocks.
More than that, it's outperforming right now. Biotech stocks have been beating tech stocks and the overall market. That tells me we should expect bigger gains in the coming Melt Up.
The most important signal is on our side as well. The TWS computers are flashing a "buy" on biotech this month.
We have the opportunity to make hundreds-of-percent gains in biotech stocks in the coming months.
This is the best "at bat" we can take right now... and it might be the best "at bat" we can take in the Melt Up, period.
Good investing,
Steve Sjuggerud
Editor's note: When the Melt Up kicks into high gear, biotech stocks are likely to be the biggest winners. But Steve has found a way to increase those gains – without any extra work – with his True Wealth Systems service. Get the details in this brand-new presentation.