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

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

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.

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Nadeem Walayat

http://www.marketoracle.co.uk

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.

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.

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