Fundstrat Global Advisors co-founder and head of research Tom Lee earlier hinted that Bitcoin's bullish movement is a precursor to a strong stock market recovery.
Bitcoin has recovered to the pre-"Liberation Day" or Apr. 2 price level when President Donald Trump hiked tariffs on nearly all the countries. Its price action suggested a massive recovery in the stock market soon, Lee said in an interview on CNBC’s Squawk Box on May 5.
Prominent assets such as Tesla, the Magnificent Seven, or Bitcoin have begun recovering. Bitcoin's recovery is indicative of S&P recovering towards 5,800 points in the near term, Lee said.
Let's see if Lee's prediction came true.
On Apr. 2, Bitcoin was around the $87,000 price level, and the cryptocurrency couldn't scale back to the level until Apr. 21. It reached the $100,000 level on May 8 and was trading at $104,589 at the time of writing.
As far as the S&P 500 index is concerned, it was trading at 5,670 points on Apr. 2. But it soon slipped below 5,000 points in the aftermath of the "Liberation Day" announcement.
The index finally recovered to pre-Apr. 2 level toward the beginning of May before retreating again. It closed at 5,886.55 points — as Lee had predicted — on May 13 as the U.S. and China reached an agreement over the weekend.
It is possible for the S&P 500 index to reach new highs this year, Lee said in the interview. Companies have even survived shocks such as the COVID-19 pandemic, so it won't be difficult for them to survive the tariff war too, he added.
Madrigal Pharmaceuticals
The only FDA-approved medicine for MASH, Rezdiffra, belongs to Madrigal Pharmaceuticals. It earned this honor early last year, although the medicine is under accelerated approval; that means it will have to prove efficacy once and for all in confirmatory studies, or it could be taken off the market.
In the meantime, the drug is performing well. In the first quarter, its sales came in at $137.3 million, ahead of consensus analyst estimates; the medicine has made it a habit to top Wall Street's projections. It also speaks volumes about Madrigal. Plenty of drugmaking giants are looking to develop breakthrough therapies in this field. So far, only Madrigal has succeeded.
Though another company will eventually challenge Madrigal, the future still looks bright. The biotech is already treating 17,000 patients with Rezdiffra, but that's still just about 5% of the 315,000 the company is targeting.
Also, its crown jewel is approved for MASH patients with moderate to advanced liver fibrosis (scarring). Madrigal will seek label expansions in the most advanced form of scarring, cirrhosis. The biotech estimates that this indication could double its target market. And that's before we consider the fact that the number of people with MASH is increasing and, according to some estimates, will continue to do so well beyond the next 10 years. Even with potential competition on the way, Madrigal Pharmaceuticals has a massive addressable market. That, together with its first-mover advantage and potential clinical progress for Rezdiffra, could allow it to generate superior returns in the next 10 years. The company could be on the way to establishing itself as a biotech leader.
This article has been published in motleyfool.com via Yahoo News.
