It was one of our most “unluckiest” trades at RiskHedge. We recommended this trade to our premium subscribers on February 19, which was the exact day the US stock market peaked before the “corona crash,” as you can see here:
The next morning all hell broke loose. The S&P 500 began a 34% plunge. This set a new record for the fastest 30% decline in the history of the US stock market.
In other words, we recommended a stock on the worst possible day to buy a stock since 2008. The company was Livongo Health (LVGO). It has all the ingredients to become one of America’s most important healthcare companies.
Still, timing wasn’t on our side. We bought Livongo on the eve of a stock market crash for about $27 per share. But our premium subscribers still collected a 124% profit when its share price surged to over $61!
And it’s all because Livongo is at the forefront of a lucrative “microtrend.”
Most Investors Think of Stocks in Prepackaged Labels Like “Tech Stocks” or “Gold Stocks”
There’s nothing wrong with these groupings. Everyone thinks about stocks this way. But these groups are too broad, too obvious, and too “picked over” by the investing masses. And if you invest like everyone else, you’re doomed to get mediocre results at best.
On the other hand, if you can shift your mindset, you’ll discover countless overlooked moneymaking opportunities. See, Livongo is a healthcare company that uses artificial intelligence (AI) and other cutting-edge technologies to help people with diabetes live healthier lives. When it popped up on our radar, we knew it was a “screaming buy.”
Diabetes stocks were arguably the hottest stocks on the planet.
Here’s Dexcom (DXCM), which makes glucose monitoring systems:
Here’s Insulet (PODD), which sells insulin pumps:
Here’s Tandem (TNDM), which also makes insulin pumps:
Every one of these diabetes stocks went ballistic. In the case of Tandem, you could have made 2,270% in just two years. That’s enough to turn every $5,000 into nearly $120,000!
You see, there are only a handful of “diabetes stocks” out there. There are no diabetes stock ETFs. No one talks about “diabetes stocks” on financial TV like they do with “energy stocks” or “social media stocks.” As far as I know, no one’s ever even put the words “diabetes” and “stocks” together before.
They’re a “microtrend” in every way possible!
From going through hundreds of charts, we discovered that “diabetes stocks” were pumping. We knew Livongo would be the next diabetes stock to go parabolic.
And the best part about all this is that new explosive “microtrends” are being born all the time.
Here Are Two Other “Microtrends” That I’m Watching Closely
The first is “edge computing” stocks. Edge computing is the next evolution of computing. Breakthrough technologies like 5G, self-driving cars, the Internet of Things (IoT), and augmented reality simply cannot happen without it.
It’s easily one of the best investing opportunities I’ve seen in my entire career. I suggest you read up on this opportunity before it becomes a buzz word.
“AI healthcare stocks” are another exciting microtrend. In short, a small group of companies is figuring out how to merge artificial intelligence with medical technology. Big breakthroughs are coming in this space soon.
The takeaway: you won’t read about these categories of stocks in the news or anywhere else. But don’t let that stop you from hunting for microtrends.
If you can think outside the box and invest in the right microtrends, not even terrible luck can stop you from making money.
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