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$4 Billion Golden Oppoerunity

Human Life Extension Investing in IBB - iShares Nasdaq Biotechnology ETF - IBB

Companies / BioTech Jul 27, 2019 - 01:07 PM GMT

By: Nadeem_Walayat

Companies

We are currently galloping full speed along an exponential curve that unlike the neural nets of the 1990's, that promised a lot but delivered very little, this time it really looks like we are on the verge of AI success, not only that but it heralds changes in every aspect of our lives most of which we cannot even imagine today, hence the term the singularity is often used, the AI event horizon beyond which we cannot see.

My latest analysis in this series focuses on how to profit and capitalise on the unfolding machine intelligence driven mega-trend through investing in leveraged to AI Human Life Extension stocks.


The whole of this analysis including 4 sector stocks to invest in has first been made available to Patrons who support my work: Investing to Profit and Benefit from Human Life Extension AI Stocks and Technologies

So for immediate First Access to ALL of my analysis and trend forecasts then do consider becoming a Patron by supporting my work for just $3 per month. https://www.patreon.com/Nadeem_Walayat.

iShares Nasdaq Biotechnology ETF - IBB (Secondary)

As requested by Patrons, I now also included ETF's in my stocks analysis for exposure to a basket of AI and sub sector stocks even though my preference is for individual stocks. For this sub sector I have selected the iShares Nasdaq Biotechnology ETF - IBB, I picked this ETF not only for its big cap holdings but that it's been kicking around for over 10 years so has a track record to look back on.

The fund has total assets of $7.5 billion so should be fairly liquid for an ETF with its last closing price of $109 and the portfolios average P/E is 21 and pays a small dividend of 0.3%.

IBB Top 10 holdings

Ticker
Name
Sector
Weight (%)
AMGN AMGEN INC Health Care
8.08
GILD GILEAD SCIENCES INC Health Care
7.93
CELG CELGENE CORP Health Care
7.20
ILMN ILLUMINA INC Health Care
6.86
VRTX VERTEX PHARMACEUTICALS INC Health Care
5.95
BIIB BIOGEN INC Health Care
3.90
ALXN ALEXION PHARMACEUTICALS INC Health Care
3.89
REGN REGENERON PHARMACEUTICALS INC Health Care
3.79
INCY INCYTE CORP Health Care
2.41
BMRN BIOMARIN PHARMACEUTICAL INC Health Care
2.03

 

Trend - IBB usually tracks the S&P quite closely in terms of trend, though for the past 3 months it has greatly under performed which may be a sign of Nasdaq small cap sector distress. Similarly it is under performing against all of the above 3 mentioned Pharma stocks during the past 3 months.

Long-term Investing - Following the stocks bear market bottom in 2009, IBB embarked on a bumper bull run, going from $20 to a high of $132.6 by Mid 2015. However since which like much of the biotech and pharma sector has been in a trading range marking time. Having been as low as $79, though usually dips to bottoming out at around $90. With the last swing down bottoming at $89 that brings is to where we stand today at $109. About midway in it's trading range.

Conclusion - IBB seems like a decent enough of a Biotech ETF with many of its portfolio of stocks focused on increasing human longevity. And like other stocks in the Pharma sector is stuck in a 5 year trading range pending a breakout higher. However it's difficult to say if it will under perform or outperform the above individual stocks following a breakout, which depends on how leveraged it is to those small and medium stocks that actually succeed. Still it is worth including in a portfolio and should be lower risk than the likes of GSK in the long-run.

The rest of this this analysis including 4 sector stocks to invest in to profit from AI driven Life Extension has first been made available to Patrons who support my work: Investing to Profit and Benefit from Human Life Extension AI Stocks and Technologies

  • Intro & Humanities Quest for Immortality
  • Extending Telomeres
  • Slowing Down the Ageing Process - Strength Training
  • Slowing Down the Ageing Process - Metformin
  • LIMITLESS - Improving Cognitive Function and Fighting Brain Ageing Right Now!
  • Investing in Life Extending Pharma Stocks
  • Stock 1 - Primary
  • Stock 2 - Tertiary
  • Stock 3 - Tertiary
  • Stock 4 - ETF
  • AI Stocks Investing Portfolio Update

So for immediate First Access to ALL of my analysis and trend forecasts then do consider becoming a Patron by supporting my work for just $3 per month. https://www.patreon.com/Nadeem_Walayat.

Scheduled Analysis :

  • Gold and Silver Trend Analysis Update
  • China Stock Market SSEC
  • NASDAQ
  • EuroDollar Futures
  • Bitcoin Update
  • UK Housing market series
  • Machine Intelligence Investing stocks sub sector analysis
  • EUR/RUB
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Your analyst

Nadeem Walayat

http://www.marketoracle.co.uk

Copyright © 2005-2019 Marketoracle.co.uk (Market Oracle Ltd). All rights reserved.

Nadeem Walayat has over 30 years experience of trading derivatives, portfolio management and analysing the financial markets, including one of few who both anticipated and Beat the 1987 Crash. Nadeem's forward looking analysis focuses on UK inflation, economy, interest rates and housing market. He is the author of five ebook's in the The Inflation Mega-Trend and Stocks Stealth Bull Market series that can be downloaded for Free.

Housing Markets Forecast 2014-2018The Stocks Stealth Bull Market 2013 and Beyond EbookThe Stocks Stealth Bull Market Update 2011 EbookThe Interest Rate Mega-Trend EbookThe Inflation Mega-trend Ebook

Nadeem is the Editor of The Market Oracle, a FREE Daily Financial Markets Analysis & Forecasting online publication that presents in-depth analysis from over 1000 experienced analysts on a range of views of the probable direction of the financial markets, thus enabling our readers to arrive at an informed opinion on future market direction. http://www.marketoracle.co.uk

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors before engaging in any trading activities.

Nadeem Walayat Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


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