Most investors are waiting for the day when they can finally close their positions and make big winnings. I think everyone has heard inspiring stories about young traders who were able to grow their trading accounts from thousands to millions in a few years.
Biotechnology is a brand-new sphere where investors seek out significant profits. For smart ones, Biotech can provide a great area of opportunity. Still, for traders who do not enjoy doing their homework, it can be unlikely to happen. In this article, we want to show real-life examples to explain why biotechnology can be so attractive and what problems investors should consider before putting their capital at risk.
Biotechnology is simply new technologies that make use of biological systems, several organisms, and parts of this to craft unique products.
Baking bread is a first life example that falls within the biotechnology concept. This traditional process uses living organisms. However, when talking about a brand-new form of biotechnology usually involves advanced modification of the biological system.
As for now, biotechnology took various spheres ( genetics, biochemistry, investing, molecular biology, and many more.). Such technologies and products are modernized with each year.
Most biotech-based companies are involved in long-term research and development on modern drugs, vaccinations, and diagnostics. The world’s most well-known biotech companies are Amgen, Regeneron Pharmaceuticals, and Biogen.
This is obvious that the focus of the biotech sphere exceeds just healthcare. Such factors as boosting agricultural efficiency to improve the situation in emerging countries and creating biofuels to reduce the energy needed for manufacturing illustrate the diversity and rapid growth of the biotech sector in the world.
Traders are now looking to generate high returns, thus turning to the biotech sector. However, the field is volatile and usually involves high risks. Investors should conduct research, find their risk tolerance, and have experience in trading before considering investing in biotech companies.
Several well-profit biotech companies that offer stocks today are Amgen (AMGN), AbbVie (ABBV), and Gilead Sciences (GILD). While they are prevalent players in the biotech investment sector, many traders are choosing other opportunities.
With a current value of this market around $179 and a yearly return of over 79%, LGND seems to have more potential than others.
Traders who are looking to invest money in the biotech sector but are afraid of the high risks involved in individual stocks are turning to many biotech ETFs available on the market today.
Due to highly dynamic relationships between different industry subgroups, investors will be safer to consider a diversified health care innovation (ETF) to invest in. Investing experts advise the ROBO Global Healthcare Technology and Innovation ETF (HTEC) to start with. This strategy is based on research and is usually updated to guarantee the inclusion of the most prospective companies in health care.
One of the ETFs that should be considered is the iShares Nasdaq Biotechnology ETF (IBB). The company has a cost ratio of 0.46%, and the market carries a market value of $159 per share. Also, traders can consider the Fidelity MSCI Health Care Index ETF (FHLC), which carries a ratio of 0.08% and a value of the market of $59 per share.
Just like all technologies in the modern world, Biotech offers the potential of a large plate of benefits but also potentially high risks.
Biotechnology is here to help fix many global problems. These include climate changes, an aging society, lack of food, energy security, and infectious health problems, to name a few.
Today many more exciting things are happening due to the inclusion of advances in biotechnology.
For instance, genome editing of living organisms, such as plants, microorganisms, and even animals, can be included in many potential applications. Considering this impact, people can significantly enhance bio-based chemical production, boost food production, and craft a more nutritious diet. In addition, scientists and medical practitioners have the opportunity to manufacture organs for transplant.
Metabolic engineering and synthetic biology are also gaining popularity today. Again, this is because of the maintained production of chemicals and materials from renewable biomass rather than using traditional fossil resources.
In upcoming years we are expected to see amazing developments in the health and wellness industry. For example, doctors are now able to use complex natural elements from bio-sources. Additionally, stem-cell therapy, ICT-integrated technologies, and much more are here to change issues caused by an aging population.
The significant growth of biotech purposes is the reason for its popularity. Moreover, since the market will grow in future years, many investors are turning to it to grow wealth.
Experts think that further development of biotechnology coupled with the latest scientific achievements and lab operations would potentially become the world industry’s core in many sectors. This will also boost interest in investing in Biotech.