More than 22,000 of your fellow readers showed up last night at 8 p.m. Eastern Time.
Judging by the feedback, it was another Jeff hit.
As regular readers will know, he’s our go-to tech-investing expert.
And from a studio in the biotech capital of the world – Cambridge, Massachusetts – he dived into some of the latest breakthroughs in biotech.
These include “God Key” technology – CRISPR gene editing.
Last night, Jeff also revealed details of his No. 1 biotech stock recommendation. Based on a breakthrough Jeff expects, he sees gains of 1,000% or more for shareholders in the coming weeks.
If you missed it… don’t worry. As a Daily Cut reader, you can catch the replay here now.
I (Chris) have been making a big deal about biotech all week. But it deserves your full attention.
As you’ll see today, homing in on this white-hot sector could be the most important step you take this year toward life-changing gains.
He graduated with a bachelor’s degree in aeronautical and astronautical engineering – aka rocket science – from Purdue University. It’s the same program that produced 16 spacefaring astronauts.
After he left Purdue, he didn’t head to space. Instead, he began a career in high tech.
Jeff was an executive at some of the world’s most advanced tech companies – in everything from semiconductors… to mobility… to digital broadcasting and video… to IT networking and security… to automotive tech… and consumer electronics.
He’s also an investor in startup tech firms. By Jeff’s estimates, 93% of the more than 145 private deals he’s invested in have made money.
And as our tech analyst here at Legacy Research, Jeff’s been early on some of the most powerful tech profit trends.
These include 5G, blockchain technology, artificial intelligence, augmented reality, self-driving cars, and quantum computing.
He’s already given his readers the chance to make gains of 332% and 432% on two CRISPR stocks.
These are companies using genetic editing to treat – and even cure – brutal diseases.
But as he’s been showing his readers, even bigger gains are to come. Jeff…
Fortunes will be made on the world’s best biotech companies in the years ahead. We’ll see regular investors make life-changing gains in this space. We’ll see new biotech-focused venture-capital funds and hedge funds spring up like wildflowers to capitalize on this trend. And my readers and I are going to be there every step of the way.
What makes biotech so exciting right now is it’s benefiting from the most powerful profit “engine” in the world.
If you’ve been with us for some time, you’ll know about this phenomenon… and how it drives rapidly accelerating profits in tech.
But even if you’ve heard me bang on about it before… it’s worth reminding yourself every so often about what’s going on at the 36,000-foot level.
Exponential growth is a feature that unites almost all the top opportunities in tech.
It’s all in this chart that shows the difference between linear and exponential growth.
Linear growth – the straight black line – is the kind of growth we grasp intuitively. It’s stable and predictable. Its pace is constant.
In a world of linear growth, the future looks a lot like the past.
But technology doesn’t follow a linear growth pattern. It follows an exponential pattern. That just means it gets faster and faster over time.
It makes sense when you think about it. Better tech helps us build better tech. This helps us build even better tech… and so on.
That makes tech growth like the curved blue line on the chart above. Jeff…
Exponential growth shows greater increases over time. The reason most folks don’t know about it is exponential growth stays nearly flat for a time. You hardly notice it. Then, suddenly, it forms this sharp “elbow” and goes almost vertical.
That’s what makes what’s happening in tech – and in particular, biotech – right now so extraordinary. The pace of innovation is accelerating on a monthly basis.
And one of the tech niches that’s benefiting most from this exponential growth engine is biotech.
Your genome is your complete set of DNA. It’s the unique code that makes us who we are.
Each genome is made up of more than 3 billion DNA “base pairs.” Each pair forms a rung on the twisted ladder of DNA. There’s a copy of this code in each cell in our body that has a nucleus.
Our DNA looks like a twisted ladder. Source: The Irish Times
Genetic therapies are based on your unique genetic code. So without widespread genetic sequencing, we won’t see mass adoption of genetic therapies.
That’s what makes the breakthrough by Dr. Craig Venter and his team at California-based biotech firm Celera Genomics so important.
In 2003, they completed the first full human genome sequencing.
It cost them $100 million.
But as recently as late 2019, the price tag plunged to less than $1,000 – an exponential decline.
It’s all in this next chart…
It tracks the dollar cost of sequencing the human genome going back 20 years. Then it plots this against the drop in cost of computing power over time – aka Moore’s Law.
As you can see, the drop in the cost of sequencing the human genome has outpaced Moore’s Law. Here’s Jeff with more on why that’s so crucial to understand…
Moore’s Law is the gold standard for exponential growth in technology. For a technology to outpace Moore’s Law like this is simply incredible.
And the cost to sequence an entire genome is continuing to fall. More recently, the cost has been about $600, with a couple of companies offering the service for about $400.
Earlier this year, Chinese genetic-sequencing company BGI Group announced it would deliver full genome sequencing for a mere $100.
That’s a game changer. It means health insurance companies can now cover genome sequencing. Jeff again…
In March, insurance company Blue Shield of California began covering whole genome sequencing for critically ill children. That’s right. We can protect even babies with this technology.
Imagine the wider consequences. Doctors will no longer have to make educated guesses when patients come in sick. Instead, they can run genetic tests and find out with certainty whether a patient’s illness is the result of a genetic condition. Patients will no longer have to go through a trial-and-error process.
And we’ll see healthcare costs plummet. It will no longer be necessary to run extensive tests, searching for the problem, or have patients try out different drugs, looking for what works. Full genome sequencing will provide the answers.
It’s part of the reason Jeff believes biotech is one of the best ways to profit in the world today.
With CRISPR, we have turned human DNA into software code. The tools are so cheap and easy to use… they’re negligible barriers to entry.
That’s a recipe for exponential growth… and profits.
Jeff says the total market opportunity for therapies derived from CRISPR gene editing will surpass $1 trillion. Essentially, the sky is the limit for how big this could get.
My first recommendation is to head on over to Jeff’s free masterclass.
You’ll learn more about the opportunity dead ahead than you would with weeks… even months… of personal research.
If you want just a “one-click” way to play it… and you’re not interested in maximizing your gains by following Jeff’s recommendations… a second-best option is a biotech exchange-traded fund (ETF).
ETFs trade on a stock exchange like regular stocks. But they give you exposure to a basket of stocks in a certain sector or index.
One popular biotech option is the ARK Genomic Revolution ETF (ARKG).
This actively managed ETF invests in companies focused on extending and enhancing the quality of human life through new breakthroughs in biotech.
It’s up 55% already this year. But if Jeff’s investment case is right… it still has a long way to climb.
Just bear in mind that the ETF charges a fee of 0.75%, which is high by ETF standards.
And treat this as a speculation. Keep your position size small. And don’t invest money you can’t afford to lose. Even small grubstakes can turn into meaningful wealth when these stocks really take off.
Until tomorrow,
Chris Lowe
August 6, 2020
Bray, Ireland