Bloomberg contrarian signal http://www.bloomberg.com/news/2012-...o-quality-with-brutal-yen-repeating-1995.html
Bloomberg contrarian signal http://www.bloomberg.com/news/2012-...o-quality-with-brutal-yen-repeating-1995.html
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Biotech stocks have been relatively quiet (and impressively stable) even as the broad market volatility has picked up. The group has some interesting trading characteristics as the area can certainly be seen as a stable defensive sector (people are always going to need new medical developments), but also has some aggressive growth characteristics. Looking specifically at the iShares Nasdaq Biotechnology (IBB) ETF, the sector has posted significant gains over the past two years, but has consolidated enough in 2012 to resolve the overbought price action â even on a monthly chart. The ETF has a valuation premium above 20 times expected earnings â which is a relatively high number, but also representative of the long-term growth prospects for the industry. Rather than take positions in small individual biotech stocks which have major risk associated with regulatory approvals for one or two specific drugs, weâre more interested in picking up exposure to well-heeled biotech companies with a number of established product pipelines. Read full commentary here...