On March 18, exactly one month ago, I wrote to you about how the market plunge felt like “a punch to the gut” and “a kick to the head.”
We were in the midst of the panic selling craziness, and I wanted to remind you how the market always recovers… and that there were some incredible bargains to be had.
A month later, we’re still stuck at home and much of the economy is shut down, but the S&P 500 has rallied 20.5%… and 28.5% off the lows that came a few days later on March 23.
Many stocks have done even better. In that time, I’ve added five recommendations to the Crisis and Opportunity Portfolio I started specifically to take advantage of the historically low prices and big opportunities. They are up 30% overall in a little over two weeks.
We’re still in a crisis, but the silver linings are getting more numerous and brighter…
First and foremost, the COVID-19 numbers certainly seem to be at least plateauing in some of the hardest-hit areas – and even showing reasons for hope. New York has been the epicenter of the outbreak in the U.S., and both hospitalizations and the number of patients needing intensive care are down. Hopefully the number of new cases will begin to subside soon.
And as scientists, doctors, and government officials work to contain the virus, we got some potentially great news late yesterday that one antiviral medicine shows promise in treating those infected with COVID-19.
The drug is remedesivir, and it was originally being developed by Gilead Sciences (GILD) to treat Ebola. It has existing data from previous trials and was identified as a possible treatment. STAT reported yesterday that 125 patients at the University of Chicago were given remdesivir daily, and 113 of those were considered to have a severe case. Most are already out of the hospital, though two patients did die.
Still, the response is encouraging, and if an effective treatment is discovered quickly as testing capacity is also ramped up, we could see areas start to open back up soon.
On Thursday, President Trump released broad guidelines for slowly reopening the country. And the very next day, Texas became the first state to announce the easing of some restrictions. Everything won’t be back to normal, but it’s a step in the right direction.
Sports leagues are also considering ways to play games, probably without fans at first, and probably limited to select locations. But again, it’s another sign of hope.
You Are Here
In writing to you a month ago, I also laid out what I expected to be the four phases of a recovery:
Phase 1: Stocks take the gut punch and pull back.
Phase 2: Stocks move sideways for a few weeks/months, and stimulus is injected into the economy.
Phase 3: Stimulus starts to take effect and stocks react, rallying big time.
Phase 4: We reach new highs.
At the time, I said if this were a map, we would have been in Phase 1. Now, I would say we are at least in Phase 2 and probably transitioning to Phase 3. Congress and the Federal Reserve have combined to inject record stimulus into the economy, and states are helping as well. The stimulus hasn’t had a chance to take effect yet, and we’re not out of the woods with the virus, but the market sure has rallied.
That’s not to say there won’t be more volatility. We know there will be more ups and downs in the coming weeks and months, but I hope you’re more confident in the ultimate recovery. And I hope you’ve been buying stocks at these low prices we may not see again for a long time, if ever.
The best opportunities are in innovative small caps operating in the hypergrowth trends of the future. Some of these trends have gained momentum out of necessity arising from the coronavirus crisis, including biotech.
The VanEck Vectors Biotech ETF (BBH) has regained everything it lost in the sell-off and then some. It is now positive for the year (+7.2%) and at all-time highs.
I said before the coronavirus hit that I thought 2020 would be the Year of Biotech and perhaps the Decade of Biotech. Seeing how quickly scientists decoded the coronavirus’ genome, identified possible treatments, and got 70 vaccines in development shows us how far biotech has come and how essential the industry is for our future.
If another virus were to surface 10 years from now, I really believe the threat of a global pandemic will be small. I bet it will be solved within a few weeks.
Much of the speed we’re seeing is due to the use of artificial intelligence to analyze piles and piles of data faster than was ever possible before. This is just a glimpse of what’s to come, and one hypergrowth trend you should be investing in now.
Stay safe, and keep your eyes on the future. Better times and big profits are ahead.
P.S. The new stock I just added to our Crisis and Opportunity Portfolio is one of the best positioned I’ve come across when it comes to harnessing the power of artificial intelligence to discover and develop breakthrough new drugs faster and cheaper.
Billionaire Bill Gates has a personal stake worth over $275 million in this company.
This stock could easily become my next 1,000% winner in a few years.
You can learn about my powerful new research and be among the first in line to get this brand-new stock pick by going here.
Matt McCall’s MoneyLine Podcast
Click here to listen to Matt McCall’s MoneyLine podcast! This week, Matt highlights the top sectors in the market right now that will only continue to grow in the future. Biotech stocks represent some of the best opportunities as these companies search for vaccines and treatments for the coronavirus. But there are many other great buys out there, too…
You can subscribe to this podcast on iTunes, Stitcher, Spotify, or wherever you listen to podcasts.
Learn where Matt McCall sees
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