Eric Fry’s “Next-Gen Stocks” – 2024 Tech Panic

Eric Fry is back with a dire warning…

He's calling it the “2024 Tech Panic“, which is set to pummel popular stocks, wipe out years of investor gains, and send one small pocket of “Next-Gen” stocks soaring to new highs.

 

The Teaser

Eric starts off the video presentation by saying “if you have an uneasy feeling that something big is on the horizon, then you're dead on.”

In the past, Eric has said he doesn’t make hard predictions frequently and when he does, he doesn’t make them lightly.

We have covered some of his past predictions here at Greenbull, including How to Profit from Elon Musk's Neuralink and his “A.I. Code Red” Stocks.

Now, Eric is predicting an “unprecedented market panic” sending stocks like the Magnificent Seven crashing, along with most of the market, wiping out trillions of dollars worth of value.

He even has a scary chart to help make his case:

But what is supposed to trigger such a cataclysmic event?

According to Eric, it may just be a case of plain-old over-valuation.

The current price/earnings ratio of the S&P 500 is just a clip over 28, which is well below the all-time high made in 2009, but also well above the mean of 16.

However, there's another indicator that is also showing signs of turbulence ahead.

The Great Cash-Out

Eric calls it “The Great Cash-Out” because insider selling is now at a three-year high and some big names, such as Jeff Bezos, Mark Zuckerberg, and others are all unloading part of their stakes.

All told, no less than 31 billionaires have been selling stock in their own companies.

Ominously, similar levels of insider selling took place right before the infamous dot-com crash almost exactly 24 years ago today.

Back then, the hottest tech stocks at the time were names like Microsoft, Intel, and Cisco Systems, among other internet darlings.

These stocks took an absolute trouncing, tumbling by 60%, 80%, and 87%, respectively,  while the general market fell by more than 50%.

It took the market a whole 15 years to get back to where it was before the crash.

But Eric isn't the only one who believes we're on the precipice of another tech meltdown, as some fund managers are also saying we're headed for another decade-long dead zone.

The silver lining is, money is shifting into a class of “next-gen” stocks that Eric has the inside track on.

 

The Pitch

There's one “next-gen” stock in particular that stands head and shoulders above the rest and Eric reveals it exclusively in a special report called: The #1 Next-Gen Stock

In predictable fashion, the report is only available to subscribers of Fry's Investment Report, which costs $49 to join.

The offer includes 1-2 new investment recommendations per month, mainly in high-growth stocks, full access to the report's archive of past picks, and a second second special report called the “1,000% Next-Gen Portfolio“, which contains a few more picks.

 

The Largest, Most Resilient Corner of the Market

Surprisingly, Eric isn't referring to artificial intelligence, crypto, gold, energy, or any of the other usual suspects.

Instead, he's talking about businesses that all Americans use on a regular basis and which tend to flourish under all economic conditions.

This class of stocks even clocked 40% gains during the 2000 dot-com bust, while tech stocks cratered by 50%

So what the heck are “next-gen” stocks?

Eric is talking about healthcare stocks, which in his estimation currently have the highest upside, while also carrying the lowest downside risk.

He even throws in a hockey analogy, saying we should “skate where the puck is going, not where it's been” like Wayne Gretzky.

The Tipping Point

Eric rightly admits that no one knows when a crash will begin, but that we are closer than ever to the tipping point.

The convergence of Artificial Intelligence with Healthcare, which will be one of the biggest disruptions of the 21st century.

According to some working in the sector, AI will automate many routine admin tasks, which presently take up 70% of healthcare professional's time.

AI will also improve the speed and accuracy of healthcare services, resulting in better care outcomes, think more prevention and less false diagnosis.

At the same time, even with automation taking up much of the slack, a global shortage of 10 million workers is anticipated in the sector by 2030.

With 1 in 4 people about to be over the age of 65 in North America and Europe by 2050, it's easy to see the huge supply/demand gap and why some big money is now moving into healthcare.

Eric and his team have scoured the entire sector and have found their favorite stock. 

One which they believe could 10x from it's present price, let's find out what it is.

 

Revealing Eric Fry's Favorite “Next-Gen” Stock

Eric's long, drawn-out video presentation, the kind with no playback feature, provided some clues about his favorite “next-gen” healthcare stock:

• Think of this company like a toll road, with every innovation in the sector possibly passing through it.
• It provides financing for new innovations, in exchange for permanent royalties.
• This business already has the largest royalty portfolio in the healthcare sector.
• Blackrock, Vanguard, and Morgan Stanley are among it's largest shareholders.

It sounds like Eric is describing Royalty Pharma plc (Nasdaq: RPRX). The clues match-up like an over-the-counter prescription.

• Royalty Pharma is the “largest buyer of biopharmaceutical royalties.”
• It has amassed a portfolio of more than 45 therapies, giving it a 60% share of the pharmaceutical royalty market.
• Morgan Stanley, Blackrock, and Vanguard are three of it's top four shareholders.

 

A Healthy 10-Bagger?

Long time readers will know that I'm a sucker for royalty stocks.

The low expense, high cashflow model is one of the best that exists for investors.

However, I have some serious questions about Eric's top pick.

Generally, drug patents last for about 20 years, give or take a couple years.

Patent holders can take steps to renew it, but it's not given that they will be able to do so. This is shorter than the typical mine lifespan of 50-70 years.

However, this isn't my main concern.

Royalty Pharma owns a diversified portfolio of royalties, so it's less exposed to the patent lifecycle than a typical drug maker.

But it is more exposed to what Artificial Intelligence is about to do to the drug discovery process.

The median time it takes to develop a new drug currently stands at 10-15 years and costs north of $2 billion. Half of this time and money is spent on clinical trials.

This is the primary reason Royalty Pharma's model works so well, because drug developers require lots of upfront capital to get through the process of bringing a new drug to market.

Now, thanks to generative AI, this is about to change.

AI is starting to be used to manage clinical trials, including automating tasks such as writing trial protocols, determining trial participant recruitment criteria, and analyzing data.

This is expected to knock years off the drug discovery process and save hundreds of millions of dollars.

As AI becomes more proficient, it could eventually streamline the entire trial process.

Overall, there will be less and less need for Royalty Pharma's capital as time goes on.

As for a stock market panic Eric is predicting, it reminds me of a Peter Lynch quote: “Far more money has been lost by investors preparing for corrections or trying to anticipate corrections, than has been lost in corrections themselves.”

 

Quick Recap & Conclusion 

• Eric Fry is calling for a “2024 Tech Panic“, which is set to plummet popular stocks back down to earth, wipe out years of investor gains, and send one small pocket of “Next-Gen” stocks soaring to new highs.
• The pocket Eric is predicting will soar is Healthcare stocks, which have historically done well during market downturn.
• There's one “next-gen” stock in particular that Eric likes and he reveals it exclusively in a special report called: The #1 Next-Gen Stock. The report is available only to subscribers of Fry's Investment Report, which costs $49 for the first year.
• Fortunately, we were able to reveal Eric's #1 pick for free as Royalty Pharma plc (Nasdaq: RPRX).
• Royalty Pharma may be a good business today, but just like the aging process itself, it will become weaker and weaker over time, thanks to AI speeding up the drug discovery process.

In what ways do you see AI impacting healthcare? Tell us all about it in the comments.