This ‘great medical leap’ could mint new millionaires

Wednesday, 27 June 2018
Melbourne, Australia
By Bernd Struben

  • Think several moves ahead of the pack
  • Last chance to sign up
  • It’s the interest rates, stupid

When you hear the word ‘blockchain’, do your eyes start to glaze over?

If so, you’re not alone. But that could be a costly mistake…

Not too long ago — say late 2016 — I felt the same way. This new word had no meaning. I knew it was tied into cryptocurrencies — another new word my brain struggled to make sense of — but that was about all.

Over the following months, working with crypto gurus like Sam Volkering and Ryan Dinse, I discovered there is far more to blockchain than the system that supports bitcoin.

I learned that it was a distributed ledger system (another term that can cause glazed eyes). One that’s spread across multiple computer networks and drives efficiency, privacy and security across our ever-expanding world of data.

Honestly, I still don’t know the ins and outs of how it all works. But then I don’t know what makes an iPhone tick either. I do know how to use one though. And I know the share price of Apple Inc. [NASDAQ:AAPL] is up 960.9% since 29 June 2007, when the iPhone was first released.

My point is, don’t let the wizardry behind blockchain keep you from investing in potentially lucrative companies that are putting this new technology to revolutionary new uses.

Now you’ve probably heard of blockchain’s potential to be a major industry disruptor.

One area that’s gotten a lot of focus is the financial markets. The ASX, for example, is going to replace its current Clearing House Electronic Subregister System (CHESS) for clearing and settling transactions with blockchain. That’s scheduled to come online by late 2020.

Blockchain also poses a threat to government control over money. The technology now supports over 1,500 different cryptos, directly challenging fiat currencies.

But how about the world of medicine?

You may not have heard much about the massive potential blockchain presents to the healthcare sector. That’s because it’s early days yet.

But according to Ryan Dinse, ‘No industry on earth is more desperate for more efficient and secure data sharing than healthcare.’

When you think about your own healthcare data, security likely tops your list of concerns. And when you globalise that data, then efficiency is a must.

That’s the idea behind a new global initiative called Project Shivom.

Ryan’s been following this project closely for the last six months. And he’s been scrutinising the Australian market for small-cap stocks that could ride the global project’s success to 10-bagger gains…or more.

We’ll get back to that after a look at the markets.

(If you’re feeling impatient, you can get the full details on Project Shivom and the four stocks Ryan expects to rocket on the back of this project here.)

Markets

Overnight the Dow Jones Industrial Average closed up 30.31 points, or 0.12%.

The S&P 500 gained 5.99 points, or 0.22%.

In Europe the Euro Stoxx 50 index finished down 0.49 points, or 0.01%. Meanwhile, the FTSE 100 rose 0.37%, and Germany’s DAX dropped 35.99 points, or 0.29%.

In Asian markets, Japan’s Nikkei 225 is down 27.41 points, or 0.12%. China’s CSI 300 continues its plummet and is down 1.74%.

In Australia, the S&P/ASX 200 is up 2.39 points, or 0.04%.

On the commodities markets, West Texas Intermediate crude oil is US$70.65 per barrel. Brent crude is US$76.53 per barrel.

Turning to gold, the yellow metal is trading for US$1,258.97 (AU$1,706.15) per troy ounce. Silver is US$16.28 (AU$22.06) per troy ounce.

One bitcoin is worth US$6,094.76.

The Aussie dollar is worth 73.79 US cents.

Think several moves ahead of the pack

Now, back to blockchain, healthcare and Project Shivom.

According to Ryan Dinse, phase two of the genomic revolution is dawning.

Phase one, by the way, was the Human Genome Project. That kicked off in 1990, when I was still in uni. I remember reading about this almost science fiction like plan to map out the entire human gene structure and thinking, ‘Good luck!’

In truth I didn’t think I’d live to see the day it was completed. Yet in 2003, a mere 13 years later, and the mystery of the entire human genome was revealed.

The payoffs in tailored medicine since then have already been huge. The payoffs for investors in a few select companies that capitalised on this medical leap boggle the mind.

Like Regeneron, whose share price went up 7,728% from trough to peak. Or Agilent Technologies, which soared 600%. Then there’s Celgene. The company’s share price rocketed an astounding 27,743%.

Invest a few thousand dollars in stocks like that and you’re talking truly life changing gains.

Today we’re in the early stages of phase two of the genomic revolution. A phase that could see even greater payoffs in the form of targeted medicines and healthier, longer lives. And one that could potentially see investors turn a $1,000 investment into $270,743…or more.

As Ryan writes:

Another great DNA project…another collision between high technology and biology…is underway.

Officially, it began on 3 May this year.

And if I’m right, another subset of “spin-off” stocks from this project could be about to mint a new generation of biotechnology millionaires.’

Now Ryan is well aware of the high level of risk involved with investing in small companies working far out on the edge of the bell curve. And he wants you to be too. As he notes:

Just like with the Human Genome Project, not every spin-off stock will be a winner.

There will be fakers and there will be failures.

You need to use your brain. Think big, think strategic, and think several moves ahead of everyone else.

But crucially, once you’ve picked your plays, you need to move now. This is not a story that will stay in the shadows for long.’

The story might not stay in the shadows for long, but it’s certainly done a fair job of it so far. I’d never heard of Project Shivom until I read an early draft of Ryan’s brand-new research dossier.

In a nutshell the project aims to use blockchain technology to enable scientists across the globe to collaborate. It’s intending to become the largest genomic data-hub on the planet. This will provide biotech researchers with a treasure trove of data. And importantly that data will be secure.

Here’s what Ryan writes about it:

It’s the unique fusion of blockchain technology and big data that allows flexibility in storing, managing and modelling data that make this project special.

In my opinion, it will revolutionise the entire biotech sector. And if it lives up to even half of its promise, it could send the speed of biotech research into overdrive. And certain stocks into the stratosphere.’

Ryan has identified four ASX listed stocks he believes are set to ride the crest of this new revolution in biotechnology. Perhaps all the way into the stratosphere.

You can get all the details right here.

Last chance to sign up

Today is day three of our publisher Kris Sayce’s four-part masterclass series titled, ‘How to Make Money from Shares That Are Going Down’.

If you didn’t sign up yet and missed out on the first two days, it’s not too late. You’ll find the first two parts of the masterclass archived so you can get up to speed with today’s session.

Tomorrow Kris wraps it all up. Meaning this is your last chance to get onboard and learn how you could be pocketing gains even as the wider stock market crashes. And Kris is convinced the market will crash within the next 18 months.

As a reminder, this isn’t a method everyone will be comfortable with. And it’s not without risk. You can find out if it’s something that might suit your investing style by clicking here.

It’s the interest rates, stupid

Speaking of crashing markets, yesterday we looked at some of the fallout from the building global trade tensions.

While some markets inched back up today, investors remain skittish. And with good reason. You never know which way Hurricane Trump is going to blow next.

I don’t have the inside scoop here. No one really does. But I expect the next month or two to remain tumultuous when it comes to global trade. And I expect Trump to move to resolve most of the issues by September.

Why September?

Because that’s strategically ahead of the US mid-term election on 6 November. If he resolved the trade ructions too early, the fickle voters will have forgotten that and moved on to focus on Trump’s latest boondoggle. Whatever that will be.

But September is just about right for Trump to claim credit for a market rebound and victory in levelling the playing field for international trade. When November rolls around, it will still be circulating in the media, and in voters’ minds.

A far greater peril for Australia’s stock and property markets lies in interest rates. Namely that they’ve been kept too low for too long.

The Australian Financial Review (AFR) offered the following insight from former Reserve Bank economist and board member Warwick McKibbin:

As Professor McKibbin puts it, the Reserve Bank is backing itself into a corner by mechanically clinging to its previously successful 2-3 per cent target for consumer price inflation. As goods and services inflation has remained stubbornly below target, the Reserve Bank has kept its cash rate accordingly low. But, as Professor McKibbin worries, this cheap money is simply fuelling growth in asset prices elsewhere and exposing the economy to a potential capital outflow shock.’

The RBA is not immune to the actions of other central banks, like the US Fed, raising rates in international markets. And while governor Philip Lowe can keep the official cash rate at the historic low of 1.5%, he can’t dictate the rates commercial banks charge.

And commercial banks are inexorably hiking rates.

This headline comes from the AFR, ‘AMP, BOQ, IMB join lenders hiking rates as the cost of money rises’. The article continues:

Five lenders are increasing mortgage rates by up to 40 basis points amid warnings they can no longer absorb the impact of rising funding costs on net interest margins, which is their main driver of profits…

That is tightening over-stretched household budgets and increasing use of pay-day lending and demand for debt relief counselling…

Borrowers’ funding costs have increased by about 35 basis points because of cash rate increases by overseas’ central banks, particularly the US Federal Reserve, and rising competition for funds as the world economy continues to improve.’

Rising interest rates are not going to come as welcome news to Australia’s already slipping housing market.

As we covered last week, Sydney dwelling prices are now down 4.2% over the past 12 months, according to CoreLogic. Brisbane has held up a better, with prices still up 0.9% over the year.

But that could be changing. Also from the AFR:

Lendlease says Brisbane’s unit oversupply will peak this year and is bracing for rising defaults on settlements in the short-term as buyers fail to complete purchases.

The developer, Australia’s best-performing real estate company over the past year, also said in an investor presentation on Friday the royal commission had driven a tighter lending environment but it was too early to estimate the effect on its residential portfolio.’

If the Aussie housing market continues to slide, it will almost certainly take the ASX down with it.

If that happens, are you prepared to sit back and watch your portfolio shrink? Or would you prefer to make money from shares that are going down?

You can learn exactly how Kris Sayce recommends you do that here.

Questions or comments? Send them to letters@portphillipinsider.com.au. If we publish your letter we’ll only use your first name.

Finally, here’s the latest in the US–Iran standoff, from The Australian Tribune:

Iran’s Rial Collapses Under Trump’s Threats’

Iranian President Hassan Rouhani had plenty of tough talk to offer in the face of renewed US economic sanctions imposed by US President Donald Trump.

But even before the sanctions resume, Iran’s currency, the rial, is falling off a cliff. And protestors have taken to the streets.

Rouhani has promised Iranians the government will…’

If you’re fed up with sanitised, politically correct dogma cut and pasted from one mainstream source to another, then The Australian Tribune is for you.

And it’s absolutely free.

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Cheers,
Bernd