IN THIS ISSUE
This is an ETF that holds companies that are working on CRISPR technologies which is a direct way to edit genes. This will be the next generation of biotechnology. Recently a company within this ETF named Regeneron released the first clinical efficacy and safety data points to the FDA. This is the first concrete proof that these technologies do work and will continue to enhance healthcare tremendously. The ETF is a long term play in our opinion.
What the flip is "the flippening?"
ARKG is an ETF that we have covered before and we believe that this will triple in value over the next 3-5 years. Cathie Woods, who called the Tesla bull run is also the head manager of this ETF. Below is a photo of her top 10 picks in this ETF.
Regeneron Pharmaceuticals was the first company ever to release phase 1 data (there are 3 phases total, so they still have a long way to go) that showed successful treatment of TRANSTHYRETIN (ATTR) AMYLOIDOSIS which is a rapidly progressive disease. This is extremely promising for the other Crispr technologies. We expect more money to funnel in within the next few years.
The bear thesis is that these companies won’t be able to make money after they cure the patients since they will no longer have a disease. So some are reluctant to invest because they see it as a one stop shop for medicine. I disagree with this as the CRISPR technologies will most likely make the treatments extremely expensive and the health insurance will have to take the cost. However, this will be ok, as in the long run it will save the health insurance companies money and will overall help our economy. We think CRISPR will have many benefits beyond just curing diseases. I am personally excited for CRISPR and their work on curing type 1 diabetes. Insurance companies would most likely be happy to have a reduction in diabetics because the high cost of everyday use insulin really eats into their profits. Personally, this is something I am rooting for because I am a type 1 diabetic myself.
Some other thoughts:
The idea of curing disease is amazing, I think money will flow in for that reason.
Efficacy is being proven, therefore your risk is being reduced a bit now as you can see that these technologies are feasible.
Much more innovation will come into this space.
This stock is down from its all time highs. It could come down further but we are invested in this on a recurring basis or dollar cost averaging.
Current Price: $82.5
Price Target in 6 months: $100
Final thought on ARKG: As Cathie Woods says, and I agree with her, “Be ahead of the change.”
Disclosure: We do own ARKG securities/shares at the time of publication.
Back on some cryptocurrency. It got a little shaky for a bit but if you were smart and held, the loss shouldn't be too terrible. We are still not at the highs we were seeing, but the upward movement and recovery is a very good sign.
Let's take a look at ETH. It just had a huge update, called the London Hard Fork. We will do our best to explain what that means for traders and the future of ETH, but it could be absolutely crucial to the success of Ethereum going forward. The price of ETH has risen 63% in the last month.
“Ether traders are acutely focused on data from the underlying Ethereum blockchain’s recent upgrade, known as the London hard fork – and the potential for the refresh to reduce the cryptocurrency’s supply growth.” The last part of that is the most important to highlight. The upgrade includes something that will decrease the supply of ETH and we all know… decreased supply means increased demand which will create a huge increase in value. “These increased gas fees are now burned instead of going to the miners, thus leading to the destruction of some Ether tokens from the network’s economy. This burning impact of the EIP-1559 adds deflationary pressure on the token.” Without going into too much detail about gas fees and miners, basically the new upgrade causes the gas fee(the cost to mine ETH) to be more stable and will help to keep the price down during bull runs. ETH is not becoming a deflationary crypto just yet, but the inflation rate did drop and it could be moving to a deflationary path.
Current Price: $3,263
Six Months: $4,000
One Year: $6,200
Three Years: $10,000
The next major upgrade to ETH will be the move to ETH2. “Eth2 refers to a set of interconnected upgrades that will make Ethereum more scalable, more secure, and more sustainable. These upgrades are being built by multiple teams from across the Ethereum ecosystem.” When ETH2 rolls out, ETH will be fully POS(Proof of stake). Probably the most appealing thing about ETH2 is the fact that it will be much more eco friendly. This update could potentially cause the price of ETH to increase by 90%. We don't know exactly when that will happen, but it's said to be planned for sometime in 2022.
The last thing that should be highlighted is the "flippening." The idea that Ethereum will overtake bitcoin as the number one valued cryptocurrency. “Goldman Sachs also released a recent report naming Ethereum as the crypto with the highest real-world use potential.” Bitcoin just doesn't have the versatility that ETH has, which is the reason Ethereum has the upper hand. Currently, the only negative we see to any crypto’s is the talk about how they will be monitored by the government and any other regulations that may be placed on them.
All stocks talked about we have invested in, and do not intend to give advice nor recommend acting upon the information.
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Until next week,
and the Optifinancial Team
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