The stock market has certainly seen ups and downs in late 2018 and the first few weeks of 2019. One sector that has consistently seen more increases in stock values is biotech. As a frequent guest on CNBC, Fox Business News and Bloomberg TV, Paul Mampilly is a biotech and stocks expert who follows the trends and educates everyday consumers on how to make the most of them. He predicts that a massive time of growth is on the way for the biotech sector of the economy. Mr. Mampilly notes that the big-time investors are taking a close-hard look at biotech companies and their public stock offerings, while everyday or “Main Street” investors have been overlooking these high-performing stocks. According to Mr. Mampilly, now is the time for smaller investors to get serious about biotech stock investments.
A Fresh Biotech Rally for 2019
Over the past five years, biotech firms have managed to raise an astounding $400 million through their public stock offerings. That is twice the amount of money raised during the previous five years. In 2018 alone, biotech firms developed and released 59 molecular entities, which are products that could yield high profits for them in the future. While pharmaceutical companies have taken a hit because of pricing scandals, biotech companies may be able to reap some of their growth in value and trading volume as investors look for fresh opportunities in 2019. Paul Mampilly, who is the founder of Extreme Fortunes and True Momentum investment groups, explains that this 2019 biotech stock rally does not surprise him. He has been watching small biotech firms achieve astounding success for years, and he knows how to predict which firms are the most likely to succeed.
Benefits of Investing in Small Biotech Firms
One reason why biotech firms may be a wise investment choice is that they are experts at partnering their assets. Small firms do not have enough capital on their own in order to achieve their goals, so they seek out partnerships. These partnerships can be put to the advantage of the everyday investor. A partnership makes it possible to sell an idea rather than a product. Selling the capability rather than a quantity of items is a more tenable goal. Small firms have an easier time delivering and fulfilling their promises. The achievement of goals results in a positive perception from investors who might have been iffy about investing in biotech stocks.
As a Senior Editor at Banyan Hill Publishing who specializes in helping main street investors build wealth and grow it, Paul Mampilly suggests that investors get in early on the right things. Individuals who are interested in making biotech investments should take a look at companies that have a clear mechanism of action. He also recommends that investors with small amounts to invest focus their efforts on biotech firms that have a long-term company-building approach written into their public offerings and statements.
Timing When to Invest in Biotech
Most investment and growth experts such as Mr. Mampilly recommend that companies remain private as long as possible. The best time to get in on biotech stocks is shortly after the IPO. Two to three years after the IPO seems to be the riskiest time for investing in a biotech firm. However, a lot of growth could be achieved by taking a big risk. The venture capitalists will also be flocking to biotech firms around this length of time after an IPO. In some cases, the small investor could get priced out of the market by waiting too long.
— Paul Mampilly (@MampillyGuru) January 8, 2019
How Politics Could Affect the Biotech Sector
Politics could make a big impact on the biotech sector over the next year. While there has been a lot of political discussion about medication prices and implementing price controls so that people who need medicine can afford it, the government has not yet taken any action on it. However, the discussions alone have been enough for many investors to be weary of investing in big pharma. The biotech sector is not quite the same as big pharma. Small biotech firms may not be the target of politicians or angry members of the public who cannot pay for their prescription medications, hospital bills or medical devices.
In fact, the biotech sector could be putting forth ideas and capabilities that make devices and medicine less costly and easier to deliver to the people who need them. Main Street investors should keep a close eye on hearings before the Senate or the House of Representatives. Mr. Mampilly also suggests that investors take a look at the reputations of the CEOs of the small biotech firms. For example, convicted felon Martin Shkreli, who was the founder and CEO of multiple biotech firms, drew much ire for his actions. His behavior at public hearings scared investors, causing his firms to lose a lot of their stock value in a brief amount of time.
Predictions for 2019 Biotech Growth
With more than 25 years of investment experience at places as diverse as Bankers Trust, the Royal Bank of Scotland, Deutsche Bank, Sears and private hedge funds, Paul Mampilly knows how to grow money. He took one hedge fund and turned its $6 billion in assets into $25 billion in just two years. He managed to do this during the worldwide financial crisis of 2008 and 2009 without shorting the stocks. After years of making money for the ultra-rich, Mr. Mampilly now focuses his expertise on helping everyday investors grow their money. He suggests buying biotech stocks now, and he is bullish about their potential.
How to Follow Biotech Stocks
Paul Mampilly quit his Wall Street career at the young age of 42. While he did not retire, he did shift his focus from corporate growth to helping average people invest their funds and make money for retirement. Mr. Mampilly identifies growth investing, technology, small-cap stocks and other types of special opportunities that apply to the typical American worker who has some money to invest for the future. In his current work at the Extreme Fortunes service, Mr. Mampilly notes that biotech stocks are some of the highest performers in the portfolio. He suggests that everyday investors select a few small biotech firms and trace their stock history. Consumers should also go to the websites of those firms and to the FDA’s website in order to see what is in the works for those companies. Doing this research could help investors select a few biotech stocks to add to their portfolios.
What an Average Investor Can Do Today
An everyday investor can begin by investing in one or two firms now while the market is getting ready for a big boom. Mr. Mampilly also suggests that investors take a look at the SPDR S&P Biotech ETF (NYSE: XBI), which is where the small biotech firms have their stocks. He notes that you do not have to be part of one of his services or funds in order to make use of this great advice. If you do the things that Mr. Mampilly suggests now, you could be a part of the massive boom that is brewing in the biotech sector of the stock market.