A Growing Biotech Company Poised for Up-list and Growth Coming Tomorrow
Inflation May Not Be as Bad as Pundits Make it Seem
Good day everyone,
The American economy is still looking strong. The major stock indices are near their all-time highs, even cryptocurrencies are looking strong. This is the type of economy that investors need to realize gains. I’ve said before that the NASDAQ seems to indicate resistance at 15,000 and the DJIA seems to indicate resistance at 35,000. Today we are beyond those resistance levels, and I hope that a breakout for both indices is forthcoming.
Inflation is a worry for some investors with the current rate at 5.4%. Everything seems to be going up in price including housing, autos, food, gasoline and more. The pressure of rising labor costs and supply chain shortages are real contributors as well and the reality is, we may see inflation hovering near 6% in the near term.
While the coronavirus won’t go away, it will certainly become more controllable and its impact on the American economy will wane. Consumers have cash to spend and as they become more confident in their health they will want to spend, particularly on travel and leisure activities they’ve been avoiding for the past 18 months. This upcoming spending spree will edge inflation a bit higher. But I want you to know that’s ok.
In a recent Kiplinger forecast they projected that inflation will fall to 3% next year. The supply chain will resume its normal state of operations, wages will settle at whatever level they are going to, and housing will go back to a more affordable level. I am reminded of an immutable law of commerce taught to me by a mentor years ago:
Competition will bring any product or service closer to its cost.
It will be this fact that settles down the inflationary boil we are currently in. The Fed will likely hike interest rates as well. Money is still incredibly cheap, looking at historical levels, with the Fed rate still hovering near zero. A modest increase in interest rate could be well tolerated.
I want to talk about a company I’ve been watching with real potential for a near term swing. I started watching this biotech company earlier this year when a catalyst resulted in a short-term spike in the company value of 100%. Looking at the chart set-up, the company’s growing revenues, and the potential of their tech makes me believe another catalyst is coming soon that may result in a bounce like the one from earlier this year.
As you read about the tech platform this company has you may be surprised, as I was, by its low market value. All the hot biopharma players are looking at this company’s patented technology, including many of the big pharma companies.
And this company has a tiny share structure that could churn a rally in its market value.
Stay tuned and stay informed.
The Traders News Group
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