Hey Income Traders,
There's a line I keep coming back to.
AI has been about chips, infinite compute needs, and the build out. But most certainly, the benefits will accrue to the users of this incredible tool.
That's the next trade. And it's already starting.
The setup. For two years, the AI trade has lived inside the data center. Chips, power, cooling, fiber, racks. Everything physical that AI needs to exist. That trade worked. It still works. But every dominant theme eventually has to answer the same question… who actually benefits from the tool we just built?
The most obvious answer? The people doing real R&D.
Look at where the smart money is going.
Isomorphic Labs, Demis Hassabis's spin-out from AlphaFold, raised over $2 billion to reimagine drug discovery. Lila Sciences raised $550 million to build autonomous AI "science factories." Retro Biosciences raised $1 billion. NewLimit, another longevity name, raised over $280 million.
These aren't tinkerers. These are autonomous research engines built to compress drug discovery from a decade to a quarter.
Hassabis himself has said it plainly. The number one application of AI should be to improve human health. That's where Google's deepest AI talent is going.
Why biotech has been dead money. Three years of rate pain. Patent cliffs. Funding droughts for early-stage names. Biotech has been one of the worst-performing pockets of the cycle. That's exactly why the setup matters now. When a sector has been left for dead, the upside isn't linear when the narrative flips. It's reflexive.
We saw it with quantum. Nothing… nothing… then everything, almost overnight. The optimism didn't show up because the science suddenly worked. It showed up because the market started asking, "which one's next?"
That's the trigger I'm watching for in biotech.
ARK Genomic Revolution ETF (ARKG) is the cleanest way to express this without picking a winner. You don't need to know which company gets the breakthrough. You need exposure when the news hits.
This is a turbo-style play. ARKG is high beta. It's a basket of high-conviction, high-volatility biotech names. This is a defined-risk, asymmetric shot at a thematic re-rating, not a portfolio anchor.
The cost of being early on a sector that hasn't moved is low. The cost of being late on a sector that re-rates in two weeks is high. The Turbo trade gives us some great flexibility.
We're not buying lottery tickets. We're putting on positions with known timeframe and known sizing. The turbo trader doesn't bet the farm. He places multiple small, well-structured bets on themes that could re-rate the world.
Bottom line. AI's first trade was chips. The second trade is discovery. We are one discovery away from this sector turning into a moonshot for investors. Size appropriately given the risk… and be on the board before the board lights up.
For those who join Turbo Income with this phenomenal HALF OFF your first month – you’ll get the trade during Monday’s class at 1pm ET. Don’t miss it!
Trade smart, stay hedged.
May the income be with you,
Hans