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    The Next Move In The 1,000 Percent-Plus Biotech Bull Market Starts Now

    Biotech stocks have an incredible history of delivering quadruple-digit runs about once a decade.

    It’s stunning, really. In the late 1980s, biotech stocks took off, returning 3,246 percent in just a couple years. In the late 1990s, biotech stocks took off again, returning 1,523 percent in an even shorter period of time.

    I think we’re in the early stages of a similar run today.

    Biotech stocks had a huge year last year.

    The Nasdaq Biotechnology Index increased 32.3 percent — more than double the overall stock market return. By investing in a double-long fund, my True Wealth Systems readers were able to lock in a 56 percent gain from January to November. 

    Even after that run, our setup in biotech stocks is still fantastic today. Let me explain.

    I use my True Wealth Systems service to determine when it’s time to buy biotech stocks. Today, my biotech system is flashing a "buy" signal. In short, the trend in biotech stocks is up.

    Meanwhile, the investing public is completely ignoring the opportunity in biotech.

    You see, back in 2000 — after biotech stocks had soared 1,523 percent in less than three years — biotech CEOs were on magazine covers. They even had sexy headlines. No joke.

    The July 2000 issue of Time magazine ran the headline "Cracking the Code: The inside story of how these bitter rivals mapped our DNA, the historic feat that changes medicine forever." 

    I haven’t seen a sexy biotech headline in a major magazine in a while. And that lack of interest from the mainstream press suits me just fine.

    Disinterest in biotech stocks has led to cheap prices. The major biotech stocks are growing much faster than the overall stock market. But they’re cheaper, based on 2014 estimated price-to-earnings (P/E) ratios.

    The Nasdaq Biotechnology Index is also 77 percent below its peak valuation based on price-to-sales ratios.

    The Nasdaq Biotech Index is 77% Below Its Valuation High

    Investors have given up on biotech stocks, and these companies are dirt-cheap because of it. Yet biotech is in the middle of an uptrend. Based on history, we could be just partway into a 1,000 percent-plus move in biotech stocks.

    In True Wealth Systems, we invest using the ProShares Ultra Nasdaq Biotechnology fund (BIB). Keep in mind that this is a double-long fund. So while the up days will be twice as good, the down days will be twice as bad.

    Our True Wealth Systems computers believe now is the time to own biotech.

    The sector is cheap, ignored and in an uptrend. Quadruple-digit runs in biotech happen roughly once a decade. And we may be in the middle of another one of those 1,000 percent-plus runs right now. 

    Take a look at BIB today if you aren’t already in the trade. We expect another year of fantastic gains.

    Good investing, 

    Steve

    Editor’s note: If you’d like more insight and actionable advice from Dr. Steve Sjuggerud, consider a free subscription to DailyWealth. Sign up for DailyWealth here and receive a report on the "Ultimate Agriculture Investment." You’ve likely never considered this "alternative" asset, but it has consistently beaten stocks and bonds over the past 30 years. Click here to learn more.

    Dr. Steve Sjuggerud is the founder and editor of one of the largest financial newsletters in the world, True Wealth. Since inception in 2001, True Wealth readers have made money every year with safe, contrarian investment ideas. Steve did his Ph.D. dissertation on international currencies, he's traveled to dozens of countries looking at investment ideas, and he's run mutual funds, hedge funds, and investment research departments. Steve's investment philosophy is simple: "You buy something of extraordinary value at a time when nobody else wants it. And you sell it at a time when people are willing to pay any price to get it." It's harder than it sounds, but Steve continues to be able to do just that for his readers. Click here to learn more.

    | All posts from Dr. Steve Sjuggerud

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