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The “Trump trade” is on. Banks, oil producers, and manufacturing stocks are rocketing higher.
Markets increasingly seem to think Trump has the election in the bag. Keep two things in mind:
#1: Prices often rise more on speculation and anticipation of an event than after the event occurs.
Remember how everyone thought solar and wind stocks would go parabolic if Biden won in 2020? The largest clean energy ETF—the iShares Global Clean Energy ETF (ICLN)—nearly quadrupled heading into the election. But it’s been cut in half since Biden’s inauguration.
Don’t be surprised if “Trump stocks” surge into November and top out soon after.
#2: Buy companies that’ll win regardless of who’s president.
If Trump wins, big tech companies will spend tens of billions of dollars on artificial intelligence (AI) infrastructure.
If Biden wins, big tech companies will spend tens of billions of dollars on AI infrastructure.
Buy great businesses profiting from disruptive megatrends, and the rest will take care of itself.
That’s how we’re investing in Disruption Investor. (Upgrade here.)
1. CRISPR is knocking diseases down like skittles.
Last week, gene editing cured a hemophiliac.
This week, it’s healing sufferers of angioedema, a debilitating rare disorder that triggers crippling bouts of swelling. Some even die when their throats swell shut. Horrific.
And there was little we could do to help these folks… until now.
Intellia Therapeutics (NTLA) just announced its gene-editing treatment slashed angioedema attacks by an average of 98% in trials!
Often referred to as “CRISPR,” gene editing allows scientists to “cut” out bad genes that cause disease and replace them with healthy genes.
Doctors essentially infused a regular IV drip with CRISPR technology. This sent tiny, engineered viruses flowing into patients’ livers. These viruses “rip out” the bad genes causing the swelling and replace them with working copies.
Two diseases down, 10,000 to go.
A recent Pew Research survey found a record number of teens find it “hard to have hope for the world.” Someone should tell them we have a magic new technology that’s curing the uncurable.
RiskHedge readers know we’re entering a golden age for biotech. It’s the next big transformational disruption, as Matt Ridley (the original Rational Optimist) told me.
Continue to invest in world-class biotech businesses.
2. The first Ethereum ETFs launched.
Will you be buying?
I already own plenty of Ethereum (ETH), and our research suggests crypto is gearing up for another leg higher.
Wall Street has steadily bought bitcoin ETFs since they launched in January. Over $1 billion poured into these funds last week alone.
The same will happen for Ethereum. The “infinite bid” is coming to crypto.
And remember, Ethereum is only about one-third the size of bitcoin (BTC). That means it takes less money to move its price.
I think Ethereum could attract around 20% of the inflows bitcoin got. What will happen when billions of new dollars flow into Ethereum? Much higher prices, I expect.
Congratulations to RiskHedge Venture members who tripled their money on the Grayscale Ethereum Trust (ETHE) since we bought it last August. This was a bet on the ETH ETF getting approved, and it’s paid off nicely.
The biggest mistake investors make with crypto is thinking you must be “all in” or “all out.”
Total skeptic? True believer? Doesn’t matter.
What matters is crypto has been the best-performing asset in the world over the past few years. All you have to do is own a little bit.
Hedge fund legend Dan Tapiero recently told me about the time he convinced a school endowment to put just 1% of its fund into crypto.
That small investment more than 5X’d and is now a meaningful amount of money.
If you’re interested in joining Venture, membership is now open again. In last week’s issue, I laid out where we are in the crypto cycle and which cryptos are poised to outperform over the coming months. See if Venture’s a good fit for you here.
3. Today’s dose of optimism…
My friend knows the editor at one of the UK’s most popular newspapers. Management at the newspaper disliked how corporate media uses alarmism and despair to attract an audience.
This newspaper decided to run an experiment: only report positive news for one week.
Result: Readership dropped 70%.
Like it or not, we’re addicted to bad news.
The corporate media will continue to give people what they want. To understand the real state of the world, you must seek out the truth. Fortunately, there’s plenty of good news too:
- In 1800, 40% of kids died before they hit puberty. Today, it’s less than 4%.
- Two hundred years ago, Belgium had the world’s highest life expectancy, at 40. Even the poorest countries have higher life expectancies today.
- Drownings of kids under the age of five have plunged by more than two-thirds since 1990.
Pessimists sound smart; optimists make money.
That’s all for today.
Related: Cubicle Jobs Will Be First To Go