FYI: The Nasdaq Biotech Index has gotten out of the gate fast for the second year in a row. As 2015 enters the first turn, though, investors are increasingly concerned that biotech will suffer a similar fate to what it saw last year around this time. The chart below compares the YTD returns of the Nasdaq Biotech Index throughout 2014 to its returns so far in 2015. Just like last year, biotech stocks have been hot to start the year, gaining more than 20% as of last week. The concern for investors now is that the sector has gotten ahead of itself and is due for a fall. That has shown up in biotech stocks over the last few trading days as the index has pulled back more than 7% from its early Friday morning highs to today’s level.
Regards,
Ted
https://www.bespokepremium.com/think-big-blog/relapse-for-biotech/
