In this special “new year” edition of Wealthy Retirement, we’re running a stock through the Safety Net model and The Value Meter… at the same time.

Using these two popular methodologies in tandem – one for dividend safety, the other for valuation – can give us a more complete picture of whether a stock is worth investing in.

Without further ado, here’s the first-ever combined edition of Safety Net and The Value Meter… featuring a company that just made a potentially industry-changing announcement.

Chief Income Strategist Marc Lichtenfeld

Safety Net

Now that the calendar has turned to 2026, lots of folks are making promises to themselves that they won’t keep. However, one resolution just got much easier.

Losing weight.

GLP-1 (glucagon-like peptide-1) drugs have been game changers for patients and the pharmaceutical companies that make them. Now, oral GLP-1 drugs will again move the needle significantly for customers and drugmakers.

Last week, Danish pharmaceutical giant Novo Nordisk (NYSE: NVO) received FDA approval for an oral version of Wegovy, which was previously available by injection only. The change to the company’s financial picture will be momentous.

We won’t have the full 2025 figures until next month, but free cash flow is projected to come in at $7.7 billion, a 28% decline from 2024’s $10.7 billion and 36% below 2023’s total.

However, because of the new approval, free cash flow is expected to jump 34% to $10.3 billion in 2026 and another 27% in 2027 to $13.2 billion.

The sharp decline in 2025’s free cash flow costs Novo Nordisk a couple of points on its dividend safety rating.

Another issue is the payout ratio.

Novo Nordisk is expected to have paid shareholders $7.1 billion in dividends in 2025. If free cash flow slid 28% as projected, the payout ratio would rise to 92%, which is way too high.

This year’s projected $8.1 billion in dividends would lead to a payout ratio of 78% based on the consensus cash flow estimate. That is also too high, but it’s within spitting distance of the 75% threshold for Safety Net. If cash flow is a little higher than expected (or dividends paid is a little lower) in 2026, the payout ratio may come in below the 75% level, and the company would not be penalized.

In 2025, American investors received two semiannual dividends totaling $1.73 per share, which comes out to a 3.3% dividend yield.

In its local currency, the Danish krone, Novo Nordisk has raised its dividend for 31 consecutive years – though American investors may have seen slight reductions because of currency fluctuations.

Due to falling cash flow and a too-high payout ratio, Novo Nordisk’s dividend safety rating is low. But this is an unusual situation with the company’s fortunes about to change dramatically due to oral Wegovy.

Combine that with a three-decade run of annual dividend increases and a likely upgrade this year, and the dividend should be okay despite the poor rating.

Dividend Safety Rating: D

Director of Trading Anthony Summers

The Value Meter

Sometimes the best businesses make only decent stocks – not because the company slips, but because expectations outrun what the cash can reasonably deliver.

That’s the situation with Novo Nordisk today. The business is still excellent. The stock, after a long reset, is finally being treated with more discipline.

The company is the unquestioned global leader in diabetes and obesity treatments. And Ozempic and Wegovy – overnight name brands, it seems – have reshaped how investors think about the company.

For a while, the market assumed that dominance meant inevitability. But recent results remind us that even great businesses have limits.

Over the first nine months of 2025, sales rose 12%, or 15% at constant exchange rates. Operating profit increased 5%, held back by roughly 9 billion kroner (roughly $1.4 billion) in restructuring costs tied to a companywide transformation. Free cash flow came in at 63.9 billion kroner (about $10.1 billion). That’s lower than the previous year, but still substantial.

Capital spending climbed as Novo expanded its manufacturing capacity. That spending isn’t optional. It’s the cost of staying competitive in GLP-1 therapies. Management also narrowed guidance and lowered growth expectations for diabetes and obesity treatments.

Novo trades at an enterprise value-to-net asset value ratio of 8.43, well above the universe average of 3.82. On that metric alone, the stock still looks expensive. The market continues to pay a premium for quality.

Cash flow is what keeps that premium from becoming a problem. Novo generates quarterly free cash flow equal to 11.28% of its net asset value. The universe average is just 1.12%. In plain terms, the company turns its assets into cash about 10 times more efficiently than the typical company. That matters.

Novo is consistent too. While the Safety Net model rewards year-over-year cash flow growth, The Value Meter prioritizes quarter-over-quarter growth. Over the past 12 quarters, the company grew its quarterly free cash flow 54.5% of the time, compared with 46.7% for peers. It also produced positive free cash flow in each of the past 12 quarters.

This isn’t a lucky stretch. It’s a durable pattern.

As we saw above, however, the stock has gone through a humbling year. Shares peaked in mid-2024 and slid through much of 2025.

That move wasn’t driven by collapsing fundamentals. It was driven by disappointment. Investors stopped paying for perfection.

That change is important. Novo is not cheap in absolute terms. You are still paying for elite assets. But you are no longer paying as if nothing can go wrong.

The business earns its valuation. The balance sheet is strong. The cash engine is real. What’s different now is the margin of safety. After the sell-off, it finally exists.

This isn’t a stock for traders chasing excitement. It’s for patient investors who want exposure to a world-class cash producer after expectations have cooled. The upside may be quieter from here, but it no longer depends on flawless execution.

The Value Meter rates Novo Nordisk as “Slightly Undervalued.”

The post Novo Nordisk: What’s Next for the Pharma Giant? appeared first on Wealthy Retirement.

Stoke’s mission is simple but bold: Use RNA science to “fix” diseases caused by missing or insufficient proteins.

The company’s approach works by boosting protein production only in tissues where the protein normally exists. It doesn’t alter DNA or insert new genes. Instead, it teaches the body to make more of what it’s already built to make.

In August, Stoke dosed the first patient in its Phase 3 EMPEROR trial for zorevunersen, which is a potential disease-modifying treatment for Dravet syndrome – a severe form of childhood epilepsy marked by constant seizures and developmental delay. Patients will receive four doses over a 52-week period.

The main goal of the study is a reduction in seizure frequency at week 28, with secondary goals related to cognition and behavior.

Current drugs can reduce seizures but don’t address the root problem. Zorevunersen might.

Early data have been encouraging. In long-term studies, patients on zorevunersen showed substantial seizure reductions and lasting improvements in cognition and behavior – signs that the treatment may truly modify the disease, not just mask it.

Results through 36 months have shown continued seizure reduction and steady gains in daily living, communication, and motor skills.

Beyond zorevunersen, Stoke is advancing another treatment called STK-002 for autosomal dominant optic atrophy (ADOA). Management confirmed that STK-002 has begun a Phase 1 study in the U.K. The company is also exploring other disorders such as SYNGAP1, expanding its reach across rare neurological conditions.

Now, the Value Meter test.

On valuation, EV/NAV stands at 2.13, about half the peer average of 4.20. Investors are paying less for Stoke’s assets than for similar companies, leaving room for upside if zorevunersen succeeds.

On cash efficiency, FCF/NAV averages -2.69%, compared with a peer average of 0.79%. That’s normal for a clinical-stage biotech. It signals steady spending, not waste.

On consistency, Stoke’s 12-quarter FCF growth rate of 45.5% nearly matches the peer average of 46.2%. For a company still in the clinic, that’s a quiet sign of control.

(The company expects its current cash to fund operations through mid-2028, helped by its collaboration with Biogen, which will handle commercialization outside the U.S., Canada, and Mexico.)

Together, these numbers reveal that the market is giving Stoke credit for the science and its strong balance sheet while still pricing in the risk of a binary trial outcome.

The stock reflects that balance. It built a long base over the past year, then broke higher into the fall. Shares recently traded in the high $30s after a strong run.

With Phase 3 now underway and results years away, volatility will remain part of the ride.

For investors, Stoke is a patient-capital story. If the EMPEROR study for zorevunersen delivers, today’s discount could vanish quickly. If not, the market’s caution will look wise. Until then, this one belongs on the watchlist, not in the “set-and-forget” pile.

The Value Meter rates Stoke Therapeutics as “Appropriately Valued.”

What stock would you like me to run through The Value Meter next? Post the ticker symbol(s) in the comments section below.

The post Stoke Therapeutics: A Biotech on the Verge of a Breakthrough appeared first on Wealthy Retirement.

In March, we’re heading to Las Vegas for four extraordinary days of insights, networking, and strategy. Chief Income Strategist Marc Lichtenfeld and our team of experts will reveal how to position yourself for the $13 trillion digital transformation – an investing opportunity that could shape your wealth for the next decade or more.

Early-bird registration is open now… but seats are limited! Don’t miss your chance to join us for this landmark event.

Click here to learn more and claim your spot now!

– James Ogletree, Senior Managing Editor

Each year, hundreds of Members join us for what has become The Oxford Club’s most anticipated tradition: the Investment U Conference.

Now in its 28th year, this gathering isn’t just another financial event… it’s where strategies are unveiled that have helped shape the wealth of our Members for decades.

And I’m delighted to invite you to join us March 22-25, 2026, at the award-winning Four Seasons Hotel Las Vegas – where we’ll explore the next great wealth-building opportunity: the $13 trillion digital transformation.

And let me tell you… you do not want to miss it.

Why? Because what’s happening in the markets right now isn’t just another cycle. It’s the start of a decade-long digital boom – one that experts predict could surge from $1.4 trillion in 2025 to more than $13 trillion by 2035.

That’s not just growth… That’s transformation.

Artificial intelligence is no longer science fiction – it’s diagnosing diseases, coding software, and trading stocks. Robotics are reshaping warehouses, operating rooms, and even kitchens. And blockchain? It’s spawning entirely new industries as we speak.

I don’t say this lightly: The moves investors make in the next few years could shape their wealth for the rest of their lives.

And that’s exactly what our Investment U Conference is designed for – helping you spot these seismic shifts early… and positioning your portfolio to capture the biggest gains.

Over four unforgettable days in Las Vegas, you’ll hear from nearly two dozen of the world’s top financial minds as they reveal…

• Which technologies are set to lead the $13 trillion digital transformation.
• Which sectors may soar… and which could vanish.
• The smartest strategies to grow and protect your wealth as disruption accelerates.

And of course, this isn’t just about sitting in a ballroom with a notebook.

It’s about joining hundreds of like-minded Members who share your passion for wealth building… enjoying world-class food and entertainment in one of America’s most exciting cities… and leaving with an investing game plan designed to help you make the next decade your most profitable yet.

But here’s the thing…

Because this is our flagship event, space fills up quickly – and early-bird pricing ends October 15.

So if you’re thinking about joining us, I encourage you to act now and secure your seat before prices rise.

I can’t wait to welcome you personally in Las Vegas.

Good investing,

Rachel

P.S. If history has taught us anything, it’s that the biggest fortunes go to those who move before the crowd. Don’t wait. Secure your early-bird seat today and join us for an unforgettable event in Vegas.

Reserve Your Spot at Investment U 2026

The post A Decade-Long Digital Boom appeared first on Wealthy Retirement.

Chief Income Strategist Marc Lichtenfeld is a huge fan of companies with strong and growing cash flow. Anyone who’s spent just a few minutes around him knows that.

If you think I’m exaggerating… think again.

Marc recently told me a story about a salesman coming to his house to sell a certain company’s products. When Marc heard the name of the company, he replied, “Oh, I’ve heard of it. Great company. Generates a ton of cash flow.”

(The salesman, of course, wasn’t sure how to respond.)

Last week, Marc sat down for an interview with our friends at MarketBeat to discuss why investors should pay much more attention to cash flow than earnings.

He also gave away the names and tickers of two potential diamonds in the rough to buy now and two “ticking time bomb” stocks to avoid:

• An established drugmaker whose free cash flow is projected to triple this year
• An under-the-radar way to get exposure to the AI space
• A household name (literally) that has been bleeding billions of dollars for the past decade
• A company that he says is “complete garbage” and whose earnings are “a joke”!

Click the image above to watch the full interview and get the details on all four stocks!

The post 2 Stocks to Buy That Are Swimming in Cash appeared first on Wealthy Retirement.

The company recently achieved a significant milestone with the approval of Casgevy, the world’s first CRISPR-based therapy, which treats sickle cell disease and beta thalassemia. (CRISPR, short for “clustered regularly interspaced short palindromic repeats,” is a type of genetic sequence and was the namesake of Crispr Therapeutics.)

Beyond its flagship product, Crispr Therapeutics maintains a diverse pipeline with five clinical programs and 10 preclinical programs.

The stock has experienced dramatic price swings over the past year. Since climbing from below $40 in late 2023 to a peak near $90 in early 2024, shares have dropped sharply.

Currently trading around $40, the stock has fallen over 50% from its highs, reflecting investor uncertainty about the company’s path to profitability despite its cutting-edge technology.

From a financial standpoint, Crispr Therapeutics is still in its early commercial phase. The company has spent heavily on research and development while building out its pipeline across four therapeutic areas: hemoglobinopathies, an immune cell therapy called CAR-T, in vivo approaches, and Type 1 diabetes treatments.

With a robust cash position of approximately $1.9 billion, the company has a runway to advance its clinical programs, but revenue will likely remain limited until Casgevy and other potential therapies gain wider market adoption.

When analyzing Crispr Therapeutics through the Value Meter framework, some interesting metrics emerge. The company’s enterprise value-to-net asset value (EV/NAV) ratio sits at 0.97, meaning investors could theoretically acquire all of Crispr’s assets at a slight discount to their book value. This looks quite attractive compared with the average EV/NAV of 7.89 for similar companies.

However, the company’s cash flow situation tells a different story. Crispr’s free cash flow-to-net asset value (FCF/NAV) ratio stands at -2.52%, with the company having generated negative free cash flow in three of the last four quarters. This is slightly worse than the -2.23% average for companies with similar cash flow situations.

Crispr’s stock price seems to reasonably reflect both the enormous potential and the significant risks that lie ahead as the company works to transform its scientific breakthroughs into commercial success.

Balancing the company’s groundbreaking technology, diverse pipeline, and attractive EV/NAV against its negative cash flow and earnings, I’m hesitant to call this stock undervalued. And so is the Value Meter system.

The Value Meter rates Crispr Therapeutics as “Appropriately Valued.”

What stock would you like me to run through The Value Meter next? Let me know here.

The post Crispr Therapeutics: A Gene-Editing Pioneer at a Crossroads appeared first on Wealthy Retirement.

So when he talks, I – and his thousands of readers – listen.

Today, he’s sharing a story about a time he narrowly avoided a catastrophic biotech investment… and learned several valuable lessons in the process.

– James Ogletree, Managing Editor

“It’s either water, or it’s not water. And we know it’s not water.”

That’s what the CEO of a small cap biotech company once said to me in a hotel suite during the J.P. Morgan Healthcare Conference.

He was talking about his company’s groundbreaking cancer drug that was in clinical trials. He was basically telling me that the drug worked.

The CEO was a Harvard grad, and he was energetic and charismatic. I believed him.

I was early in my career covering biotech stocks, and this drug tackled a difficult-to-treat cancer. I wanted the medicine to work for patients, and I wanted the recommendation to work for my readers, as we were getting in early.

My readers made a tiny bit on the stock, but not a ton, as we got stopped out when the stock started to slip after an initial gain.

I was disappointed to get stopped out, but I stuck to my discipline and recommended selling the stock when the stop was hit.

Boy, am I glad I did.

It turns out that the CEO was right. The drug wasn’t water.

It was poison.

Not only did the Phase 2 data show that the drug did nothing to treat cancer, but patients who took it actually had a higher death rate than those not taking it.

You can imagine what happened next. The stock fell off a cliff. It dropped from about $15 to below $1 and eventually became a zero.

As I said, this was very early in my days covering biotech, about 15 years ago. I learned three valuable lessons…

Lesson No. 1: Fine-tune your BS detector.

CEOs of publicly traded companies are typically measured in what they say about their companies – or, in the case of biotech and pharmaceutical companies, what they say about their drugs.

They’ll tell you what the data shows and will of course be bullish, but they won’t say definitively that a drug is safe and effective until the FDA says it is.

The guy I talked to was so cocky about his drug, alarm bells should have been ringing.

If you ever hear a biotech CEO talking exuberantly and definitively about a drug that has not finished clinical trials yet, be wary.

Lesson No. 2: Look at the data.

When it comes to clinical trials, understand what the data shows. A drug may have shown effectiveness in an early trial, but if the number of participants was low or if the study wasn’t double-blind (where neither the patients nor the doctors know who is getting the drug), the data may not be accurate.

That doesn’t mean the drug doesn’t work. Many successful blockbusters started with a small trial. But you should temper your expectations until a larger, more rigorous trial is conducted, because lots of failed drugs started with a small trial too.

Lesson No. 3: Stick to your stops.

I’ve always been disciplined when it comes to trading. When a stop is hit, I sell – no matter how bullish I am. (In some cases, after I sell the stock, I may look for a better opportunity to buy it again later.)

When you’re upset about potentially getting stopped out, it’s too easy to make excuses and justify why you should stay in a trade. Stops take the emotion out of trading, and that’s the single most important thing you can do to improve your results.

Honor your stops.

The Cost of Learning

Everyone makes mistakes and pays “tuition” – the cost of learning – when they start trading. I certainly have.

Luckily, this one wasn’t costly at the time. But the lessons I learned helped shape the way I invest and trade – especially in the biotech and pharma sectors.

The next time you hear a CEO talking about their company, ask yourself whether the statement is equivalent to the “it’s not water” declaration. If it is, don’t just walk away – run.

The post Avoid These Pitfalls of Biotech Investing appeared first on Wealthy Retirement.

Often called MindMed, the company is developing novel therapies derived from psychedelic compounds to treat brain health disorders, with a focus on anxiety and addiction.

Like cannabis-based medicine before it, psychedelic medicine has garnered quite a bit of attention, and the hype has pumped up MindMed’s stock.

As you can see in the chart, shares skyrocketed from their late 2023 lows of around $2.50 to a peak above $11.50 earlier this year – an incredibly fast 360% gain in under six months.

The stock has since retreated to about $7.50, but it’s still up significantly from its lows. The question is… has the stock’s valuation gotten a bit too trippy?

Let’s run this biotech through The Value Meter to find out.

MindMed’s enterprise value-to-net asset value (EV/NAV) ratio of 5.78 is well below the average of 10.95 for companies with positive net assets. Not bad at first glance.

The real red flag is MindMed’s cash burn.

The company has recorded negative free cash flow in each of the past four quarters. On average, it’s burning through the equivalent of 15.32% of its net assets each quarter.

While that’s better than the 24.19% average for firms with similarly poor cash flow, it’s still concerning.

MindMed’s first quarter financials also seem to paint a clear picture.

The company reported a net loss of $54.4 million, more than double its $24.8 million loss in Q1 of 2023. Research and development expenses totaled $11.7 million, while general and administrative expenses jumped to $10.5 million.

To be fair, though, biotech is notoriously cash-hungry, and MindMed’s lead candidates are still in the clinical trial phase.

Without approved products generating revenue, the company relies on investor capital to fund operations.

MindMed raised approximately $175 million in Q1 through an offering and private placement. This significantly boosted its cash position to $252.3 million as of the end of March, which provided some breathing room, but it came with the cost of significant share dilution.

MindMed’s supporters tend to argue that its potential psychedelic-derived treatments justify its current valuation. For example, the company’s lead candidate, MM-120 (a proprietary form of LSD), recently showed promising results in treating generalized anxiety disorder during a Phase 2b trial.

The thing is, drug development is a long, expensive, and risky process. Even with positive early results, there’s no guarantee MM-120 or other candidates will make it to market. The road from Phase 2 to FDA approval is littered with once-promising drugs that didn’t pan out.

When we balance the company’s intriguing yet unproven pipeline against its precarious finances, the current valuation looks hard to justify. The market seems to be pricing in a best-case scenario with little room for setbacks.

That doesn’t seem very wise.

For risk-tolerant investors who believe in the long-term potential of psychedelic medicine, MindMed might be worth watching, but I’d wait for a significant pullback before considering a purchase. While the company’s research is fascinating, the stock price has gotten way ahead of the fundamentals.

The Value Meter rates this one “Extremely Overvalued.”

What stock would you like me to run through The Value Meter next? Post the ticker symbol(s) in the comments section below.

The post Are Mind Medicine Investors Tripping? appeared first on Wealthy Retirement.

To make sure you’re caught up on Alex’s latest insider updates and recommendations (or to learn how to get access to them), click here.

– James Ogletree, Managing Editor

Over the past decade, investing in biotech stocks with insider buying has tripled the S&P 500’s return.

Tandem Diabetes Care (Nasdaq: TNDM) and Exscientia PLC (Nasdaq: EXAI) are prime examples of some I’ve recommended. The former was a particularly big winner, allowing my readers to lock in up to a 1,795% gain in less than one year.

Needless to say, I’m bullish on the industry.

But there’s one big problem faced by most biotechs: Drug discovery.

More specifically, how long drug discovery takes and how much it costs. Drug discovery hasn’t changed much in the last century. It still takes up to a decade or even more in some cases to develop a new drug.

It’s a long, manual process with lots of trial and error (not to mention government red tape) that can be performed only by highly trained resources. Because of that, it’s also astronomically expensive. The average cost to develop a new drug is $2.6 billion…

That’s a lot of money to shell out for a drug that may not even make the cut – a full 9 out of 10 drugs entering Phase 1 clinical trials never make it to market. They get shot down by the Food and Drug Administration (FDA), often for good reason. But by that point, it’s already cost billions of dollars to develop them.

That’s changing, though. And it’s changing fast. Artificial intelligence (AI) can make drug development a faster and cheaper process with fewer costly failures.

It can shorten drug development times from a decade-plus on average to just a few short years and give us better, longer, healthier lives in the process.

I recently found a company that is using AI to support the entire biotech industry. Because, unlike many biotech companies that focus on only one specific segment of the drug development process, this company helps other biotechs make new breakout discoveries.

In fact, it has supported 80% of all FDA-approved novel drugs that have hit the market over the past five years. If you’re taking a new drug, there’s a good chance this company helped develop it.

I’m expecting big things for this company because its insiders are piling in at a breakneck pace…

I think the biggest growth is just on the horizon. That’s based on the fact that insiders have loaded up on $1.45 million worth of shares in the last 12 months – with some of the fastest buying happening as we were coming into the end of 2023.

Among the biggest purchases were those from the CEO, who bought 5,620 shares for just over $1 million, and the COO, who bought 1,322 shares for just under $250,000 – both in November 2023.

That’s a prime example of the cluster buying that I look for – and from two of the highest-ranking executives at the company to boot…

And when I see high-level insiders plunk down big money on their own stocks, I know something big is likely to happen soon…

Following the Insiders

This company sits at a crossroads of AI, biotech and insider buying: two industries growing at an incredible pace plus the single greatest indicator I’ve ever seen in the market…

All in one stock.

The company’s incredible technology and the niche it’s carved out in the biotech industry make it a great investment…

But considering two of its highest-ranking executives are eating their own cooking to the tune of $1.2 million, this goes from a great buy to an out-and-out incredible opportunity.

I’m bullish on the biotech industry, I’m bullish on AI and I’ve always been bullish on companies with massive insider purchases.

This is not an opportunity you want to pass up, and it’s my No. 1 insider stock pick for this year.

Find out more details here now.

This strategy has delivered gains as high as 1,163% in just 90 days. And today, I’m seeing signs that we could be on the verge of another massive winner.

Click here to learn how you could potentially target 10X gains by Labor Day.

The post Beat the Market by Following Biotech Insiders appeared first on Wealthy Retirement.

According to one of the leading voices on investing in biotech, “The biotech sector produces gains that would make a tech investor jealous. These stocks can absolutely launch when they receive positive news.”

Who is that expert, you ask?

Our very own Chief Income Strategist Marc Lichtenfeld!

Having studied biotech for over two decades, Marc has more knowledge of the inner workings of the sector than almost anyone else. And in this episode of State of the Market from last August, he goes over the three items on his checklist for uncovering winning stocks in the biotech sector.

The post The Top 3 Criteria for Uncovering Biotech Winners appeared first on Wealthy Retirement.

And we’re starting to see that happen.

As I told you on Saturday, some experts predict that by 2040, generative AI could result in $1 trillion in value for healthcare.

Nvidia CEO Jensen Huang said it will be “the next amazing revolution [and] one of the biggest ever.”

Those are powerful words coming from someone like him.

But let me be clear… This isn’t just biotech 2.0.

This revolution is so huge and so radical that scientists have come up with an entirely new word for it…

TechBio.

It’s more than just a buzzword. It’s a true paradigm shift.

Biotech typically starts with the biological elements – living organisms, biological molecules, genetic material, etc. – and then applies data analysis, engineering principles and technology to manipulate or harness those biological components for desired products or outcomes.

TechBio, on the other hand, often begins from an engineering, data science or technological standpoint. It leverages tools, devices, computational power and technologies first and then applies or integrates them with biological systems to study, measure or interface with those living systems.

TechBio signifies a uniquely sophisticated method of drug development.

And it can’t be done without AI.

Thanks to these innovations, we’re starting to see how AI can accelerate the whole process of discovery and testing new compounds. It’s taking a fraction of the time… in some cases making the process as much as 15 times faster.

A study by Carnegie Mellon suggests AI could ultimately cut costs by as much as 70%.

So AI is just the thing that will ignite a massive rally in these stocks. And soon.

But that’s not all…

A Perfect Storm Is Brewing

The cherry on top?

Morgan Stanley analysts point out that a Fed rate cut will also fuel these stocks, writing, “In our view, there have been green shoots pointing to the beginnings of a rally in the biotech industry.”

All year, I’ve been saying rate cuts wouldn’t come as quickly as most people expected, and I’ve been proven right. But one is coming eventually.

And when that happens, look for this corner of the market to really take off.

Why?

Low rates provide a favorable financing environment and increase the valuations of biotech firms’ pipelines, driving outperformance in the sector.

Add it all up, and there’s NEVER been a better time to jump into this market.

The post “TechBio”: A New Era of Innovation appeared first on Wealthy Retirement.