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While others get distracted by the noise on Wall Street, we're staying focused on our long-term objective of building wealth through tech investing.
I also said I'd bring you three stocks that can beat this whipsawed market. And in a moment, I'm going to do just that…
But first, let's me address something no one else in the mainstream media is covering – tech is still performing better than the overall market.
So far this year, the Dow Jones Industrial Average is down nearly 8%, and the Standard & Poor's 500 Index is off about 5%. By contrast, the Nasdaq Composite is just above breakeven.
Tech will continue to outperform this choppy market.
And these three tech stocks will lead the pack…
Getting Revved Up
Fed Chairwoman Janet Yellen is scheduled to meet with reporters on Sept. 16 to explain the central bank's policy stance. The Wall Street Journal says 82% of forecasters polled expect a rate increase at the September meeting.
I mention that to make sure you know I've factored a possible Fed-driven market retreat into my investment thesis.
Now that that's out of the way, let's take a look at why these three stocks are the ones you should add whenever Wall Street goes on sale…
Tech Investing Pick No. 1: Gilead Sciences Inc.
There's never been anything like the success Gilead (Nasdaq: GILD) has had with Sovaldi. This highly effective treatment for the blood-borne disease hepatitis C racked up $10.3 billion in sales last year – its first full year on the market.
But there's more to the story. Gilead launched a second hepatitis C drug, Harvoni, at the end of 2014 that did $2.1 billion in sales. That combined $12.4 billion is just slightly less than the $12.5 that AbbVie Inc. (NYSE: ABBV) brought in last year for Humira, an anti-inflammatory that is the best-selling drug ever.
Some investors are worried about Gilead's stock because the company is facing competition for hepatitis C drugs.
But Harvoni ranks as the most effective drug in its class and is targeting a large market. The Centers for Disease Control and Prevention recommend that all 76.5 million U.S. baby boomers get tested for hepatitis C.
Moreover, the company has at least 36 new drugs in its clinical pipeline, including three that are close to getting approval from the U.S. Food and Drug Administration.
The stock trades at $102, giving it a $158 billion market cap – and it offers sterling financials. It reported triple-digit earnings gains in four of the past six quarters. Over the past three years, it has grown per-share earnings by an average 91% and boasts a 99% return on stockholders' equity.
About the Author
Michael A. Robinson is a 36-year Silicon Valley veteran and one of the top tech and biotech financial analysts working today. That's because, as a consultant, senior adviser, and board member for Silicon Valley venture capital firms, Michael enjoys privileged access to pioneering CEOs, scientists, and high-profile players. And he brings this entire world of Silicon Valley "insiders" right to you...
- He was one of five people involved in early meetings for the $160 billion "cloud" computing phenomenon.
- He was there as Lee Iacocca and Roger Smith, the CEOs of Chrysler and GM, led the robotics revolution that saved the U.S. automotive industry.
- As cyber-security was becoming a focus of national security, Michael was with Dave DeWalt, the CEO of McAfee, right before Intel acquired his company for $7.8 billion.
This all means the entire world is constantly seeking Michael's insight.
In addition to being a regular guest and panelist on CNBC and Fox Business, he is also a Pulitzer Prize-nominated writer and reporter. His first book Overdrawn: The Bailout of American Savings warned people about the coming financial collapse - years before the word "bailout" became a household word.
Silicon Valley defense publications vie for his analysis. He's worked for Defense Media Network and Signal Magazine, as well as The New York Times, American Enterprise, and The Wall Street Journal.
And even with decades of experience, Michael believes there has never been a moment in time quite like this.
Right now, medical breakthroughs that once took years to develop are moving at a record speed. And that means we are going to see highly lucrative biotech investment opportunities come in fast and furious.
To help you navigate the historic opportunity in biotech, Michael launched the Bio-Tech Profit Alliance.
His other publications include: Strategic Tech Investor, The Nova-X Report, Bio-Technology Profit Alliance and Nexus-9 Network.