Biotech Bottoming?

Articles From: Bullseye Brief
Website: Bullseye Brief



Biotech stocks have been hit hard on concern that rising rates lower the value of future profits, and that Washington may force Covid vaccine developers to make patent details public… so much for intellectual property rights. The S&P 500 Biotech ETF (XBI) has fallen 31% since March, and while weeks of selling have certainly tested my patience, historical data gives me hope that the selloff is nearly over. We have witnessed six notable drawdowns in the sector since 2011, with an average decline of 35%… at 31%, we’re pretty darn close. Critically, each of these nasty selloffs was followed by a sustained and significant rally. As for politicians and The Fed, I have a hard time seeing Washington trampling on decades-old IP protocols… especially in light of on-going negotiations with China… and Friday’s disappointing jobs data should keep rate hikes at bay. My fingers are crossed.

s&p biotech ETF XBI

As of 5/10/21, the author holds positions in:

Allakos, Inc., Applied Therapeutics, Arconic Corp., BioDelivery Int’l, Inc., Boeing Company, Boston Properties, Inc., CVS Health Corp. , Energy Transfer LP, Evofem Biosciences, Inc., Herman Miller, Inc., Inovalon, Inc., Iveric Bio, Inc., JAMF Holding, Inc., L3Harris Technologies, LifeSci Acquisition II Corp, Neoleukin, Nine Meters Biopharma, Nutanix, Inc., OMC Group, Inc., Ontrak, Inc., Progenity, Inc., Progyny, Inc., Rapt Therapeutics, Inc., Shift Technologies, Inc., SmileDirectClub, Inc., SOC, Telemed, Inc., Teladoc Health Inc., The RealReal, Inc., Trillium Therapeutics, Velodyne, Inc., Wynn Resorts, Ltd., Workhorse, Halliburton, NXP Semiconductors

Disclosure: Interactive Brokers

Information posted on IBKR Campus that is provided by third-parties does NOT constitute a recommendation that you should contract for the services of that third party. Third-party participants who contribute to IBKR Campus are independent of Interactive Brokers and Interactive Brokers does not make any representations or warranties concerning the services offered, their past or future performance, or the accuracy of the information provided by the third party. Past performance is no guarantee of future results.

This material is from Bullseye Brief and is being posted with its permission. The views expressed in this material are solely those of the author and/or Bullseye Brief and Interactive Brokers is not endorsing or recommending any investment or trading discussed in the material. This material is not and should not be construed as an offer to buy or sell any security. It should not be construed as research or investment advice or a recommendation to buy, sell or hold any security or commodity. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.