It’s been a rough couple of months in the stock market — especially for the Biotech stocks. In fact the Biotechs went down 20% during an 8 day period at the end of September.
The tailspin started when Hillary Clinton tweeted something about drug prices being too high. Then Bernie Sanders got into the mix, and then this month Valeant Pharmaceuticals (VRX) got some bad headline news for acquiring drug companies then raising the prices on some of the drugs.
Biotechs had been one of the top sectors the past few years, and from my angle it is still the top sector to be in. Look, all sectors correct at some point, and Biotech had the earnings growth, so the smart money managers invested in these stocks. When market corrections occur, managers have to sell stocks to get cash for redemptions. I feel that’s the main reason the stocks fell. Now earnings season is upon us and these Biotechs listed here could bounce back in a big way.
