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Biotech Gets Slammed - Game Over?

By Chris Rowe March 26, 2015 Facebook Logo Twitter Logo Email Logo LinkedIn Logo

What ever will we do?

Biotech got creamed yesterday!

The NASDAQ Biotech Index (Symbol: $NDX) was down 4.14%.   That means it’s "only" up 12.39% for the year (while the S&P 500 was up only 0.1% as of yesterday’s close).  Um.... excuse me?

2015-03-25_19-23-59

When we consider the S&P 500 returns compared to the various biotech indices, the only thing investors should be thinking about, when the sector gets slammed like this, is where we should step in and buy.

Yesterday, Peter Boockvar, chief market analyst at The Lindsey Group, called biotechs “the poster boy for stock market speculation”.  It never ceases to amaze me how descriptions used by analysts dramatically change from day to day.

Just a few days ago (when biotech was advancing), you couldn’t open a stock market publication without reading about how biotech is still undervalued with a great many having cleaner balance sheets than many big pharma companies.

I hope the sector comes down a bit more because we have new investors who's investment capital will be deployed shortly.  Thank you stock market gods for the gift.

Rowe Wealth Management is intensely focused on market analysis as we are approaching the end of the first quarter.  We are studying which sectors are doing what and at some point soon we will start revealing a few methods we use to come to our conclusions.

But in the meantime, that means we aren’t sending out our weekly True Market Insider this week.   Quality money management for clients comes first.

We look forward to writing for you again next week!

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