Last Friday, I wrote to you about the Nasdaq reaching highs of old and warned that perhaps things aren’t all that different between today’s bubble and the bubble that obliterated so many investors back in the early 2000s.
Of course, this is contrary to what most analysts are saying right now. But that shouldn’t surprise you. As Pete DiOrio called me before I debated Peter Schiff at his St. Kitts conference, I’m a contrarian’s contrarian!
I focused particularly on the biotech sector, comparing it to the Nasdaq and asked the question: Will biotech stocks endure a smaller correction than the Nasdaq in the great reset ahead, or will it correct more given that it has outperformed by over 60% in the rally since early 2009?
The honest answer is, I don’t know yet. But biotech, like India and emerging markets, is something I’m watching keenly. In the long-term, there’s a lot of potential there, and here’s why…
Numerous emerging technologies are set to shape our future beyond what the PC, smart phone, Internet and broadband has done for us since the late 1980s. The four I’m most interested in are (in order of emergence):
- 3D printing.
What sets these particular emerging technologies apart in my mind is that they operate from the bottom-up. They embody the new network economy…
When you can create new medical cures down to the genes and cells, that’s bottom-up. It’s more targeted.
When you can create products from smaller and more local 3D printing factories, that’s bottom-up.
Nanotechnologies literally promise that you can create something from the energy in the air — that should result in much cleaner production and energy. That’s bottom-up.
Already our life expectancies are rising much faster than the 1.5 year average since the ’60s. In the next four decades, they could potentially rise even faster than the average four years we gained between the 1930s and 1960s. A recent cover of Time proclaimed that a baby born today could now live to be 142 years old. A cover on National Geographic last year told the same story. I think those claims are a little optimistic, but it is entirely possible that we achieve a 120-year life span in the next 40 to 50 years.
That is the one game changer we see for changing the dismal demographic outlook in developing countries in the decades ahead.
Again, we’re taking massive leaps forward in our ability to grow new organs, target cancers more precisely, change bad genes, clean out our arteries with nanobots, and even scrub the CO2 from our atmosphere.
Printing human organs is already a decade-old practice.
We will have increasingly intelligent robots to help us make products more cheaply in developed countries, putting us back in competition with emerging countries and their cheap labor.
Aging societies are moving inexorably towards a life filled with robots to care for the aged. Japan is leading the charge on this score.
Author of Sapiens, Yuval Noah Harari, even believes that thanks to our technological advancements, humanity will be unrecognizable by 2045. That is, how we are today will cease to exist and we will be something entirely new.
But the base of this next revolution, which my 45-Year Innovation Cycle shows will surge again from 2032 and mature around 2055, is biotech. It’s like the Internet of the future, but even it is still in in its infancy, like personal computers in the 1980s. And Ben Benoy has his finger on the pulse. (Or is it more accurate to say he has his finger on the human genome?)
Even better, he has found a way to use the revolutionary technology of today to play the revolutionary technology of tomorrow.
What strikes me as most powerful, however, is that his system doesn’t rely on the biotechnology sector moving up in a straight line. As I mentioned last Friday, this sector faces a rocky road ahead as we move across the 45-Year Innovation Cycle plateau between now and 2032. So the fact that Ben is able to play both sides of the market using his system makes it something you should consider adding to your investment strategies.