Posted January 05, 2022
By Jonathan Rodriguez
PREDICTION: 2022 Will Be Biotech’s Biggest Year
Happy New Year!
And I'm so happy to be back talking trades with you again this year.
Here's my first big prediction for the New Year...
2022 Is gonna be BIG for biotech.
And although the industry basically saved the world last year with mRNA vaccine technology...
But biotech stocks stalled out in the second half of 2021 when the broader market sold off.
I'm gonna let you in on a little trader's secret...
Last year's underperformers are often this year's outperformers.
And a major, yet little-known event takes place next week that should send battered biotech shares soaring.
In today's video, I'm going to tell you exactly what's going to kick this rally off...
And reveal my top breakout stock of the bunch…
Alright, still with me?
Next week, banking behemoth JPMorgan & Chase will host their 40th annual healthcare conference.
This is the largest, most informative healthcare conference on the planet for investors.
But because it's exclusive to the bank's clients, most people have no idea that this event even takes place!
Pre-pandemic, top pharmaceutical executives would fly out to San Francisco for this event on private jets...
Hoping to curry favor & investment with JPMorgan's deep-pocketed power players.
Successful presentations could easily turn into windfall cash infusions & closed-door dealmaking.
This year, money managers are flush with cash.
And they're hunting for the next big drug after the breakthroughs of mRNA technology in COVID-19 vaccines.
Here's why this should matter to you...
The stocks of the companies that present at the conference often pop solely on the news that they'll be there.
And if a biotech presentation lands big with investors, these stocks are often the biggest gainers of the year.
Here's one example.
Moderna, one of the two biggest COVID vaccine makers, presented at last year's JPM conference.
The stock rose nearly 20% in the weeks leading up to the conference.
And it gained another 50% in the month following the conference.
In fact, by August, Moderna had more than tripled.
That's how big of a deal this event is...
So how can YOU profit from the JPMorgan effect?
The easiest way to play it is with the SPDR S&P biotech ETF XBI which tracks some of the biggest drugmakers on the market.
Many of these firms present at the conference.
It's one of the market's top-performing funds in January.
And over the last ten years, XBI gained an average of 6% in the month... and ended the month green in 8 of the last ten January's, or 80% of the time.
Given the conference takes place in early January every year...
It's no surprise the ETF soars in the first two weeks of the month.
Now you can simply buy the ETF this week and hold through the month and do pretty well.
But if you really want to accelerate your income potential...
Take a look at my stock that rocks this week, Acadia Pharmaceuticals, ticker ACAD.
It's a $3.6 billion biotech firm specializing in central nervous system disorder treatments.
And, of course, they'll be presenting at the JPM conference next week.
Acadia's drug NUPLAZID is the first and only FDA-approved treatment for Parkinson's disease-related hallucinations and delusions.
And they're working on new drugs to treat a range of bad stuff...
Like psychosis in dementia patients, schizophrenia and Rett syndrome.
So the company's got a revenue-generating drug as well as several key drugs in the pipeline.
Their stock sank last March because of a hiccup with the FDA amid a proposed label expansion for Nuplazid to dementia patients.
But Acadia worked closely with the agency to move Nuplazid's expansion forward.
And since the stock bottomed out last year...
Shares have nearly doubled and retaken the 200-DMA for the first time since February.
Since November, the stock has smoked the S&P 500 and biotech stocks.
And last week, the stock just flashed a golden cross...
Which is a bullish chart pattern where a stock's 50-day moving average crosses above the 200-day average.
Given the massive potential for Acadia in the $12 billion dementia drug space...
I think the stock looks like a bargain, even at today's price... and has plenty of room to run higher.
So to sum up, if you want to take advantage of the bullish JPMorgan effect on biotech stocks...
Take a closer look at Acadia Pharmaceuticals, who'll be presenting at this year's JPM healthcare conference.
Or if you'd rather bet on the whole sector, consider adding the biotech ETF XBI to your portfolio.
With either play, you'll be set up for success in biotech for 2022.
Thanks for watching today's video.
If you dig the content, please hit the like button and subscribe to the Rich Retirement Letter YouTube channel...
So you never miss out on my videos.
And if you've got a question or comment, leave me a note below this video or shoot me an email at AskJRod@StPaulResearch.com.
And for Rich Retirement TV, I'm J-Rod and I'll see you next time.
Senior Analyst, Rich Retirement Letter