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Six Stocks to Buy for Profiting Amid 2022 Challenges

Six stocks to buy for profiting amid 2022 challenges should be fueled by key investment themes.  The six stocks to buy for profiting amid 2022 challenges share characteristics of high quality, inflation-protected dividend yield, value rather than…

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Six stocks to buy for profiting amid 2022 challenges should be fueled by key investment themes. 

The six stocks to buy for profiting amid 2022 challenges share characteristics of high quality, inflation-protected dividend yield, value rather than growth, free cash flow (FCF) generation and more, according to BofA Global Research. Other factors that led to their recommendation include fund positioning, the investment firm’s analysts’ 2022 earnings outlook versus consensus forecasts, as well as other catalysts.

In addition, these six stocks are mostly neglected by active funds and benefit more from inflation, rising interest rates, heightened gross domestic product (GDP), increased oil prices and wage growth, compared to an equal-weighted 11 sector portfolio. The following six stocks to buy for profiting amid 2022 challenges were picked by BoA, which provided analysis for each of its choices. 

The Fed’s Jan. 5 release of the minutes from its December Federal Open Market Committee (FOMC) meeting indicated an increasingly aggressive plan to wind down quantitative easing (QE), raise the Fed Funds Rate and reduce the $9 trillion in debt on the Fed’s balance sheet, Bryan Perry wrote to his Cash Machine newsletter readers. The news impaired short-term investor sentiment and triggered heavy selling in the market’s favorite and dominant growth stocks in subsequent days, he added.

The only sectors holding up under the stress of broad market downside pressure are energy, financials, consumer staples and utilities, Perry opined.

Paul Dykewicz interviews Bryan Perry, who heads the Cash Machine newsletter, as well as the Premium Income, Quick Income Trader, Breakout Profits Alert and Hi-Tech Trader trading services.

Exxon Mobil Is One of Six Stocks to Buy for Profiting Amid 2022 Challenges

Exxon Mobil Corp. (NYSE: XOM) shares traded above $70 on Tuesday, Jan. 11, to reach a new 52-week high. The stock also pays a 5% dividend yield at that breakout level, said Perry, who has been watching the stock rise as an existing recommendation in his Cash Machine newsletter.

Exxon Mobil will stand as the only oil major to emerge from the last five years with capacity for growth in free cash flow, according to BofA Global Research. But while claiming a rich opportunity slate, its chosen pace of investment is perceived as having underestimated cyclical risks, the investment firm wrote.

XOM proved capable of navigating COVID volatility but at a price, adding $20 billion to its balance sheet, and overshadowing prudent management of prior cycles, in contrast to some peers that cut their dividends, BofA wrote. As BofA’s top Energy sector stock for 2022, Exxon Mobil is estimated to have the capacity to resume dividend growth on both an absolute and per-share basis, while restoring its balance sheet to pre-COVID levels.

Bob Carlson, who heads the Retirement Watch investment newsletter, said his top pick for conservative to moderate investors is Energy Select SPDR (XLE), featuring Exxon Mobil as the fund’s top holding among 21 stocks. Carlson, who serves as chairman of the Board of Trustees of Virginia’s Fairfax County Employees’ Retirement System with more than $4 billion in assets, said energy stocks finished 2021 strongly, and most of the factors that propelled those gains will continue in 2022.

“Inflation is likely to remain high for much of 2022 and perhaps longer,” Carlson said. “Energy stocks traditionally are a good inflation hedge.” 

Pension fund and Retirement Watch chief Bob Carlson answers questions from columnist Paul Dykewicz.

From discussions with certain investors, the preponderance of views suggests a big issue that gained support from enough shareholders to win 3 of 12 Exxon Mobil board seats was less about climate and more about capital discipline and continuing a sustainable and growing dividend for the stock, BofA wrote. There is little doubt dividend sustainability came under scrutiny through the cyclical trough of 2020 and the company’s payout may increase in 2022 for the first time since 2019, BofA added.

Chart courtesy of www.stockcharts.com

Mondelez Joins Six Stocks to Buy for Profiting Amid 2022 Challenges

Mondelez International, Inc. (NASDAQ: MSLZ), a multinational confectionery, food, holding and beverage and snack food company based in Chicago, Illinois, is BofA’s top pick in the Consumer Staples sector. BoA described Mondelez as a high-quality stock that has positive gross domestic product (GDP) and interest rate betas.

Based on analysts offering 12-month price targets for Mondelez International in the last three months. The average price target is $72 with estimates ranging from a high of $76 to a low of $67, according to NASDAQ. 

However, Mondelez’s share price has soared recently, so the potential profit by investing in the stock now is not as large as it would have been a little more than a month ago. Nonetheless, Mondelez International gained a nod from BofA analysts.

Chart courtesy of www.stockcharts.com

Welltower Gains Spot With Six Stocks to Buy for Profiting Amid 2022 Challenges

Welltower Inc. (NYSE: WELL), a Toledo, Ohio, real estate investment trust (REIT) that invests in health care infrastructure, is BofA’s preferred choice in the real estate sector. BofA cited the REIT’s “attractive dividend yield” of 2.9% as a reason to own its shares.

The $94 price objective for WELL set by BofA accounts for depressed earnings due to the COVID pandemic, as well as expectations of a multi-year period of above-average earnings growth due to a rebound in senior housing as the pandemic wanes. The stock’s price may outperform that estimate amid better-than-expected senior housing or medical office building performance, higher-than-forecast dividend growth and reduced interest rates.

But risks remain. They include public-pay reimbursement cuts, a more competitive acquisitions environment, weaker-than-expected senior housing fundamentals, increased tenant credit risk and rising interest rates, BofA noted.

Welltower has been one of the top holdings of one of Carlson’s recommended funds, Cohen & Steers Realty Shares (CSRSX). Cell tower firms and data storage companies have benefited from increased use of mobile technology and will do so, he added. 

Chart courtesy of www.stockcharts.com

Six Stocks to Buy for Profiting Amid 2022 Challenges Include Eastman Chemical

Kingsport, Tennessee-based Eastman Chemical (NYSE: EMN), an independent global specialty materials company that produces a broad range of advanced materials, chemicals and fibers for everyday purposes, received an upgraded rating to a buy from neutral by BofA in August 2021. The investment firm boosted its earnings per share (EPS) and earnings before interest, taxes, depreciation and amortization (EBITDA) estimates, as well as its price objective on Eastman Chemical to $140, up from $130.

The company, BofA’s favorite choice in the Materials sector, offers an attractive dividend yield of 2.6%. Once a subsidiary of Kodak, EMN’s businesses today offer a highly diversified set of chemical products delivering exposure to various markets. This is accomplished through an expertise in four primary chemical chains: coal gasification and acetyls, para-xylene and polyesters, olefins, and methanol and alkyamines. EMN then markets these products to customers across the product chain, starting at upstream commodities and moving down to highly differentiated chemical derivatives, BofA wrote.

Chart courtesy of www.stockcharts.com

Eastman Chemical Should Not Be Overlooked, BofA Wrote

Eastman Chemical has executed well both through and in the wake of the COVID recession, building on innovation-led initiatives while adding additional avenues for growth, BofA wrote. Supplementing the revenue story is a transition in cash deployment from debt pay down to more direct shareholder value creation. With its shares trading below its highs, BofA sees an attractive value and entry point for investors.

BofA’s $140 price objective is based on the average of its enterprise value to 2022 estimated earnings before interest, taxes, depreciation and amortization (EBITDA) valuation of $147 and its price to 2022 estimated earnings per share (EPS) valuation of $134. The price target is based on 10.5x and 13.5x multiples for BofA’s 2022 EBITDA and EPS estimates, respectively, near the high-end of historical five-year peak valuations of 11.0x forward EBITDA and 14.5x forward P/E. BofA described that level as appropriate due to Eastman Chemical’s expected return to normal profit level, consistent free cash flow generation and positive earnings momentum.

CVS Captures Place Among Six Stocks to Buy for Profiting Amid 2022 Challenges

CVS Health (NYSE: CVS), of Woonsocket, Rhode Island, is one of the largest health care companies in the United States, providing retail, mail and specialty pharmacy dispensing services and pharmacy benefits. CVS is one of the most vertically integrated publicly traded healthcare companies and ranks as BofA’s favorite health care stock. 

CVS Health has been taking share across its three businesses and continues to generate a significant amount of cash flow to support the ongoing growth strategy, BofA wrote. Thus, BoA affirmed its buy rating on CVS and boosted its price objective from $112 to $115.

BofA increased its fiscal year 2021 EPS from $8.00 to $8.04, maintained its fiscal year 2022 E0PS at $8.23 and cut its fiscal year 2023 EPS from $9.08 to $8.98. The latter change stemmed from incremental investments tied to different service buildouts, which are not expected to aid profit materially until at least fiscal year 2024. Share buybacks are expected, with potential mergers and acquisition (M&A) action tied to the company’s growth initiatives to offer near-term catalysts aside from sustaining ongoing operational strength.

Chart courtesy of www.stockcharts.com

Walt Disney Snares Spot in Six Stocks to Buy for Profiting Amid 2022 Challenges

Despite near term COVID pressures and higher direct-to-consumer (DTC) expenses, BofA expect Disney to grow stronger due to robust Disney+/Hulu/ESPN+ subscriber growth and long-term theme park margin potential, among other reasons. Key catalysts incl Disney+ video price increases and more widespread launch in Japan, theme park re-openings and capacity increases and resumption of feature film/TV releases. 

BofA wrote on that it maintains a Buy rating and a $192 price objective on the stock. The investment firm also trimmed its earnings outlook for Disney to reflect slower vaccine rollout leading to more gradual theme park and hotel re-openings, causing temporary delays in production due to a resurgence in COVID cases, theatrical film delays and increased investment in DTC initiatives.

Disney also has been slowed by closures of Disneyland in California and Disneyland in Paris on Oct. 30, along with Disneyland in Hong Kong on Dec. 1, BofA wrote. Those shutdowns led to employee furloughs and other cost-saving measures.

Chart courtesy of www.stockcharts.com

Single-Day Hospitalizations in America Hit New High

U.S. hospitalizations due to COVID-19 surpassed last winter’s peak, proving the virus is becoming increasingly prevalent as the highly contagious Omicron variant spreads across the country. The U.S. Department of Health and Human Services reported that 142,388 people were hospitalized nationwide with the virus as of Sunday, Jan. 9, exceeding the previous single-day record of 142,315 reported on January 14, 2021.

As an indicator of how the virus is spreading, the seven-day average of daily hospitalizations hit 132,086, up 83% from two weeks ago. In addition, the Biden administration called for U.S. insurers to cover eight at-home tests each month.

The holiday season of 2021 marked the second straight year that COVID-19 has interfered with the travel plans of families and friends hoping to gather. Canceled flights keep growing by the thousands due to rising COVID cases, as workers at airlines, airports and related retailers call in sick.

Scientists have confirmed the new Omicron variant of COVID-19 is spreading much faster than the Delta version. However, the severity of the Omicron variant seems weaker than Delta, according to early reports.

Omicron recently has become the dominant variant of COVID-19 in the United States by a wide margin. That version of the coronavirus is blamed for causing the Mid-Atlantic region of Washington, D.C., Maryland and Virginia to set records for daily cases. Many other regions are reporting new peaks for COVID-19 cases, too.

COVID-19 Concerns Mount Along With Cases and Deaths

The Omicron variant of COVID-19 is combining with the Delta version to trigger renewed calls for people in high-risk locales to obtain vaccinations, wear masks indoors and even stay home. Government and public health leaders in the United States also are urging people to receive booster shots, if they are eligible.

The Centers for Disease Control and Prevention (CDC) reported that the variants are spurring people to obtain COVID-19 boosters. However, nearly 62 million people in the United States remain eligible to be vaccinated but have not done so, said Dr. Anthony Fauci, the chief White House medical adviser on COVID-19.

As of Jan 11, 247,321,023 people, or 74.5% of the U.S. population, have received at least one dose of a COVID-19 vaccine, the CDC reported. Those who are fully vaccinated total 207,954,605, or 62.6% of the U.S. population, according to the CDC.

COVID-19 deaths worldwide, as of Jan. 11, topped the 5.5 million mark to hit 5,503,857, according to Johns Hopkins University. Worldwide COVID-19 cases have zoomed past 313 million, reaching 313,353,216 on that date.

U.S. COVID-19 cases, as of Jan. 11, jumped more than 5 million in the past week to total 62,308,132 and caused 842,141 deaths. America has the dreaded distinction as the country with the most COVID-19 cases and deaths.

The six stocks to buy for profiting amid 2022 challenges are recommended by BofA to purchase and hold for the full year. Investors open to accepting that commitment may be rewarded for their patience in what could be a volatile year for the markets.

Paul Dykewicz, www.pauldykewicz.com, is an accomplished, award-winning journalist who has written for Dow Jones, the Wall Street Journal, Investor’s Business Daily, USA Today, the Journal of Commerce, Seeking Alpha, GuruFocus and other publications and websites. Paul, who can be followed on Twitter @PaulDykewicz, is the editor of StockInvestor.com and DividendInvestor.com, a writer for both websites and a columnist. He further is editorial director of Eagle Financial Publications in Washington, D.C., where he edits monthly investment newsletters, time-sensitive trading alerts, free e-letters and other investment reports. Paul previously served as business editor of Baltimore’s Daily Record newspaper. Paul also is the author of an inspirational book, “Holy Smokes! Golden Guidance from Notre Dame’s Championship Chaplain,” with a foreword by former national championship-winning football coach Lou Holtz. The book is great as a gift and is endorsed by Joe Montana, Joe Theismann, Ara Parseghian, “Rocket” Ismail, Reggie Brooks, Dick Vitale and many others. Call 202-677-4457 for multiple-book pricing.

The post Six Stocks to Buy for Profiting Amid 2022 Challenges appeared first on Stock Investor.

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EUR/AUD bearish breakdown supported by additional China fiscal stimulus and AU inflation

Weak PMI readings from the Eurozone, an increase in China’s budget deficit ratio, and renewed inflationary pressures in Australia may trigger a persistent…

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  • Weak PMI readings from the Eurozone, an increase in China’s budget deficit ratio, and renewed inflationary pressures in Australia may trigger a persistent bearish sentiment loop in EUR/AUD.
  • Watch the key short-term resistance at 1.6700 for EUR/AUD.
  • A break below 1.6250 key medium-term support on the EUR/AUD may trigger a multi-week bearish impulsive down move.

The Euro (EUR) tumbled overnight throughout the US session as it erased its prior gains against the US dollar recorded on Monday, 23 October; the EUR/USD shed -104 pips from yesterday’s intraday high of 1.0695 to close the US session at 1.0591, its weakest performance in the past seven sessions.

Yesterday’s resurgence of the USD dollar strength has been attributed to a robust set of October flash manufacturing and services PMI data from the US in contrast with weak readings seen in the UK and Eurozone that represented stagflation risks.

Interestingly, the Aussie dollar (AUD) has outperformed the US dollar where the AUD/USD managed to squeeze out a minor daily gain of 21 pips by the close of yesterday’s US session. The resilient movement of the AUD/USD has been impacted by positive news flow out from China, Australia’s key trading partner.

China’s national legislature has just approved a budgetary plan to raise the fiscal deficit ratio for 2023 to around 3.8% of its GDP which was above the initial 3% set in March and set to issue additional sovereign debt worth 1 trillion yuan in Q4. This latest round of additional fiscal stimulus suggests that China’s top policymakers are expanding their initial targeted measures to address the ongoing severe liquidity crunch in the domestic property market as well as to reverse the persistent weak sentiment inherent in the stock market.

In addition, the latest set of Australia’s inflation data surpassed expectations has also reinforced another layer of positive feedback loop in the Aussie dollar which in turn may put Australia’s central bank, RBA on a “hawkish guard” against cutting its policy cash rate too soon.

The less lagging monthly CPI Indicator has risen to an annualized rate of 5.6% in September, above consensus estimates of 5.4%, and surpassed August’s reading of 5.2% which has translated into a second consecutive month of uptick in inflationary growth.

In the lens of technical analysis, a potential bearish configuration setup has emerged in the EUR/AUD cross pair from a short to medium-term perspective.

Major uptrend phase of EUR/AUD is weakening

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Fig 1: EUR/AUD medium-term trend as of 25 Oct 2023 (Source: TradingView, click to enlarge chart)

Even though the price actions of the EUR/AUD have been oscillating within a major ascending channel since its 25 August 2023 low of 1.4285 and traded above the key 200-day moving average so far, the momentum of this up movement is showing signs of bullish exhaustion.

Yesterday (24 October) price action ended with a daily bearish reversal “Marubozu” candlestick coupled with the daily RSI momentum indicator that retreated right at a significant parallel resistance in place since March 2023 at the 65 level which suggests a revival of medium-term bearish momentum.

EUR/AUD bears are now attacking the minor ascending support

Fig 2: EUR/AUD minor short-term trend as of 25 Oct 2023 (Source: TradingView, click to enlarge chart)

The EUR/AUD has now staged a bearish price action follow-through via the breakdown of its minor ascending support from its 29 September 2023 low after a momentum bearish breakdown that was flashed earlier yesterday (24 October) during the European session as seen from the 4-hour RSI momentum indicator.

Watch the 1.6700 key short-term pivotal resistance (also the 50-day moving average) for a further potential slide toward the intermediate supports of 1.6460 and 1.6320 in the first step.

On the other hand, a clearance above 1.6700 invalidates the bearish tone to see the next intermediate resistance coming in at 1.6890.

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GigXR partners with NUS Medicine to deliver holographic clinical scenarios for gastroenterology training

GigXR, Inc., a global provider of holographic healthcare training, announced today its partnership with the Yong Loo Lin School of Medicine, National University…

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GigXR, Inc., a global provider of holographic healthcare training, announced today its partnership with the Yong Loo Lin School of Medicine, National University of Singapore (NUS Medicine), one of the world’s leading medical schools, to introduce a new gastrointestinal module for the award-winning HoloScenarios application. Created to better prepare medical and nursing students in diagnosing and treating acute gastrointestinal diseases, HoloScenarios: Gastrointestinal delivers evidence-based, robust clinical simulations that present hyperrealistic holographic simulated patients and medical equipment to be used in any physical learning environment, accessed anywhere in the world.

Credit: Yong Loo Lin School of Medicine, National University of Singapore (NUS Medicine), and GigXR

GigXR, Inc., a global provider of holographic healthcare training, announced today its partnership with the Yong Loo Lin School of Medicine, National University of Singapore (NUS Medicine), one of the world’s leading medical schools, to introduce a new gastrointestinal module for the award-winning HoloScenarios application. Created to better prepare medical and nursing students in diagnosing and treating acute gastrointestinal diseases, HoloScenarios: Gastrointestinal delivers evidence-based, robust clinical simulations that present hyperrealistic holographic simulated patients and medical equipment to be used in any physical learning environment, accessed anywhere in the world.

Going beyond linear step-based training traditionally seen with virtual reality (VR), HoloScenarios: Gastrointestinal uses mixed reality (MR) to simulate the entire patient journey, while including branching logic to catalyze variance in learning experiences. From taking basic medical history to performing invasive testing and emergency procedures, the new module empowers learners to master vital medical decision-making and manual skills as they would see them in real-life clinical scenarios and patient care.

HoloScenarios: Gastrointestinal is created in collaboration with renowned medical professionals and educators from NUS Medicine who specialize in the fields of Gastrointestinal (GI) Surgery and holographic medical training. The module is delivered by the Gig Immersive Learning Platform, the enterprise-scale platform enabling the creation, curation, and sharing of immersive training applications and modules made by the world’s preeminent healthcare institutions and MR developers.

“Gastrointestinal pathologies can be complex and challenging to diagnose. This module will allow learners to form a deeper understanding and appreciation of the gastrointestinal tract, especially the three-dimensional understanding of anatomy and body functions,” said Associate Professor Alfred Kow Wei Chieh from the school’s Department of Surgery and Assistant Dean (Education) at NUS Medicine. “We believe mixed reality is the next evolution in healthcare training, and collaborating with immersive platform innovators like GigXR helps us to bring this vital content to more learners globally and, ultimately, improve patient care.”

With international medical and surgical credentials that include MBBS (S’pore), M Med (Surg), FRCSEd (Gen Surg), FAMS, and FACS, Associate Professor Kow has trained thousands of healthcare professionals and advanced surgical fellows. He received the 2023 REAL Advancing in Liver Transplantation Award for his contributions to global liver transplantation education and is a founding member of The Holomedicine® Association.

“GigXR has one of the most advanced and comprehensive platforms in mixed reality, especially in medical training, and enables the exchange of developments, innovation, and expertise with a wider community across Asia and beyond,” added Associate Professor Kow. He is also the Head and Senior Consultant of the Division of Hepatobiliary & Pancreatic Surgery, Department of Surgery, at Singapore’s National University Hospital (NUH), the teaching hospital of NUS Medicine.

The new module also delivers enhanced realism in training learners to more accurately diagnose and treat acute gastrointestinal diseases. Whereas VR has been widely used in gastroenterology training for linear step-based skills, such as in endoscopic procedures, it is limited in its ability to simulate fully realized clinical scenarios. Holographic patient simulation in MR merges hyper-realistic holograms in physical learning spaces that accurately reflect the clinical environment and tools with which learners will care for real patients.

With HoloScenarios: Gastrointestinal, learners can interact with the holographic simulated patients, holographic medical equipment, instructors, and each other. This allows them to master both technical and soft skills, such as patient empathy and team communication, in hyper-realistic, safe-to-fail environments that reduce cognitive load. If the holographic patient displays the need for further care, such as a definitive surgery, learners can discuss a definitive treatment plan.

To gain a deeper evaluation of outward symptoms, co-located learners can safely walk around the patient hologram that is displayed on top of their real-world surroundings. Whereas VR locks learners into a virtual “box,” MR enables clear visibility and awareness of physical surroundings. This allows learners to move freely without fear of physical collisions and safety so they can fully focus on learning key gastrointestinal treatment, diagnostic, and communication skills with peers and instructors.

“In healthcare, educators are not only trying to help learners master and retain vital knowledge, but recall and apply it when a patient’s life may be at risk,” said Dr. Gao Yujia, MBBS (S’Pore), MRCS, FRCSEd, Consultant and Assistant Group Chief Technology Officer at Singapore’s National University Health System, and Vice Chairman of The Holomedicine® Association. “With HoloScenarios: Gastrointestinal, learners will have the ability to not only visualize the presentation of a given disease in 3D but better understand how to apply key learnings in the clinical context and within team environments.” Dr Gao is also the Director of Undergraduate Medical Education for Surgery at NUS Medicine.

With scenarios across gastrointestinal pathologies that include gastrointestinal bleeding, intestinal obstruction, and chronic liver failure, learners can master complex and potentially critical situations. They can learn, for example, how to stabilize patients who are dehydrated, bleeding, or septic, as well as the types of diagnostic procedures that may then be required to get a definitive diagnosis. Using mixed reality headsets or any Android, iOS smartphone or tablet, learners can access HoloScenearios: Gastrointestinal from anywhere for remotely distributed, yet highly immersive simulation.

“Immersive technology has accelerated the sharing of expertise for teaching, training, and simulation. Mixed reality, with its natural propensity to facilitate hyperrealistic, safe, and collaborative learning, continues to accelerate both the quality and scale of training outcomes,” said Jared Mermey, CEO of GigXR. “We are immensely proud to partner with NUS Medicine which has been at the forefront of adopting mixed reality in both clinical and educational use cases. By bringing their esteemed expertise onto our platform with the co-creation of HoloScenarios’ newest module, we believe clinical breakthroughs in diagnosing and treating gastrointestinal diseases will take a giant leap forward.”

Designed specifically for pedagogy, the Gig Immersive Learning Platform is trusted by over 70 enterprise-scale healthcare institutions across four continents to build full immersive curricula utilizing a robust content catalog – all of which is managed from a single dashboard. Third-party content developed by leading 3D medical partners, including DICOM Director, 3D4Medical by Elsevier, and ANIMA RES, seamlessly integrates with the platform to provide complementary, in-depth anatomy applications that empower learners with a broader physical context for the pathologies that they study.

“The Gig Immersive Learning Platform has quickly become the premier educational, social network for sharing healthcare training expertise in the immersive format, spanning global healthcare institutions and the Department of Defense to content developers and enterprises large and small,” said David King Lassman, Founder of GigXR. “HoloScenarios: Gastrointestinal marks the latest milestone in our rapidly expanding catalog, which now boasts a dozen different licensable training modules that span holographic simulated patients, clinical scenarios, anatomy, pathophysiology, and 3D medical imaging.”

NUS joins the University of Cambridge and Cambridge University Hospitals (CUH) NHS Foundation Trust, University of Michigan, and Morlen Health, a subsidiary of Northwest Permanente, P.C., as the world-class institutions partnering with GigXR to co-create holographic healthcare training. These simulations include modules centered around Respiratory diseases, Basic Life Support, Advanced Cardiac Life Support, Neurology scenarios, and now, with NUS, Gastrointestinal diseases.

GigXR and NUS Medicine plan to launch HoloScenarios: Gastro in Spring 2024. For more information on GigXR, visit GigXR.com or email sales@gigxr.com. For more information on NUS, visit nus.edu.sg.


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Public support for extending the 14-day rule on human embryo research indicated by foundational dialogue project

The findings of a foundational UK public dialogue on human embryo research are published today, Wednesday 25th October 2023, as part of the Wellcome-funded…

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The findings of a foundational UK public dialogue on human embryo research are published today, Wednesday 25th October 2023, as part of the Wellcome-funded Human Developmental Biology Initiative (HDBI). The HDBI is an ambitious scientific endeavour to advance our understanding of human development. The dialogue project, which was co-funded by UKRI Sciencewise programme, engaged a diverse group of the public to consider how early human embryo research can be used to its fullest, the 14-day rule and the fast-paced field of stem cell-based embryo models.

Credit: Dr Matteo Molè (Babraham Institute)

The findings of a foundational UK public dialogue on human embryo research are published today, Wednesday 25th October 2023, as part of the Wellcome-funded Human Developmental Biology Initiative (HDBI). The HDBI is an ambitious scientific endeavour to advance our understanding of human development. The dialogue project, which was co-funded by UKRI Sciencewise programme, engaged a diverse group of the public to consider how early human embryo research can be used to its fullest, the 14-day rule and the fast-paced field of stem cell-based embryo models.

Headline findings include:

  • Appetite for review of the 14-day rule: Participants recognised that extending the 14-day rule could open up ways to achieve benefits in fertility and health, with participant support for reviewing this, including national discussion.
  • Confidence in regulation: There was a high level of confidence in how human embryo research is regulated, despite a low level of awareness of the regulators and statutes themselves. This included strong desire to see robust regulation governing any changes to the 14-day rule and further regulation for the use of stem cell-based embryo models.
  • Support for improved fertility and health outcomes: The strongest hopes for future human embryo research were where new knowledge would deliver improvements in understanding miscarriage, preventing health conditions such as spina bifida and raising the success rates of IVF procedures.
  • Concerns about genetically engineering humans: The public expressed concerns on the application of developments in this field to genetically alter or engineer humans.

The dialogue engaged a group of 70 people broadly reflective of the UK population in over 15 hours of activities including a series of online and face-to-face workshops with scientists, ethicists, philosophers, policy makers and people with relevant lived experience (such as embryo donors from IVF procedures).

Dr Peter Rugg-Gunn, scientific lead for the HDBI and senior group leader at the Babraham Institute, said: “Recent scientific advances bring incredible new opportunities to study and understand the earliest stages of human development. To ensure this research remains aligned with society’s values and expectations, we must listen and respond to public desires and concerns. This public dialogue is an important first step and as a scientist I am reassured by the findings but there is still a long way to go to fully understand this complex issue.” 

The report is exceedingly timely, following notable scientific advances in human developmental biology presented at conferences and in leading scientific journals in recent months. As well as generating excitement in scientific fields and with the public, announcement of these breakthroughs also prompted some concerns and criticisms, with the view that these findings raised significant ethical issues. The dialogue provides insight into public considerations following deliberation on early human embryo research. The hope is that it will act as a foundational reference point that others in the sectors can build upon, such as in any future review of the law on embryo research.

Professor Robin Lovell-Badge, co-chair of the HDBI Oversight group, senior group leader and head of the Laboratory of Stem Cell Biology and Developmental Genetics at the Francis Crick Institute, said: “We have learnt a lot about human development before 14 days, but there are areas of investigation that could change how we understand development, and associated diseases, that lie beyond our current window of knowledge. Despite low awareness of current laws, members of the public quickly recognised many of the critical issues researchers are keenly aware of when it comes to growing embryos beyond the current limit. This dialogue also reinforced the fact that the public are in support of research that will yield better health outcomes, and in this case, increase the success of IVF procedures.

Other countries will be looking to the UK to see how we deal with the 14-day rule; we are not there yet with any mandate to make a change, but this does give a strong pointer. The next step will be to delve deeper into some of the topics raised through this dialogue as they apply to specific areas of research, as well as feeding into policy changes.”

The 14-day rule and the regulation of stem cell-based models

When considering the regulation of research involving human embryos, the dialogue explored participant’s views on the 14-day rule. Introduced in 1990, the 14-day rule is a limit enforced by statute in the UK. It applies to early human embryos that are donated by consent to research and embryos that are created for research from donated sperm and eggs. It limits the amount of time early human embryos can be developed in a laboratory for scientific study to 14 days after fertilisation. Due to technical advances, it is now possible to grow embryos in the lab past 14 days, but researchers are not allowed to by the law. If the law changed, it would open up this ‘black box’ of development with researchers able to investigate this crucial time in development from 14-28 days after fertilisation.

Professor Bobbie Farsides, co-chair of the HDBI Oversight group and Professor of Clinical and Biomedical Ethics at the Brighton and Sussex Medical School, said: “It has been a fascinating experience to support HDBI in the undertaking of this exercise.  I commend the participants for the care and mutual respect they have shown throughout. Their engagement and commitment to a subject few of them had previously considered allowed for a wide range of views to be expressed and considered. I hope the scientists involved will be encouraged by the high level of interest in their work, and will want to keep the public conversation going around these important subjects.”

The dialogue included participant discussion on what a change to the 14-day rule might look like, and identified points that should be considered, such as defining what the benefits of extending the rule would be and potential mis-alignment with human embryo research regulations in other countries.

Participants acknowledged the astonishing possibilities of stem cell-based embryo models. The majority of participants would like to see these models further regulated. Work in establishing potential governance mechanisms is already underway. In recognition of the need for additional guidance and regulation in this area, the Cambridge Reproduction initiative launched a project in March 2023 to develop a governance framework for research using stem cell-based embryo models and to promote responsible, transparent and accountable research.

Future steps

A key outcome from the public dialogue is the identification of areas for further exploration, with participants proposing how future national conversations might be shaped. It is hoped that the project acts as a reference base for both widening engagement with the subject and also prompting deeper exploration of areas of concern.

Dr Michael Norman, HDBI Public Dialogue coordinator and Public Engagement Manager at the Babraham Institute, said: “This dialogue shows that people want the public to work closely with scientists and the government to shape both future embryo research legislation and scientific research direction. It is crucial that others in the sector build on these high quality, two-way engagement methodologies that allow for a genuine exchange of views and information to ensure that the public’s desires and concerns are listened to and respected. Transparency and openness around science is vital for public trust and through this we, as a society, can shape UK research in way that enriches the outcomes for all.”

Public Participant (Broad public group, south) said: “I do think that an extension of this public dialogue, and educating a wider society has a benefit in itself. This is really complex and sensitive and the wider you talk about it before decisions are made, the better.”


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