Wednesday, February 05, 2014 10:22:22 AM
Cabos - The bio market is somewhat insulated depending on what you own butttt ifff the general market is tumbling the bio index will slide as well Last time the general was off 50% in 2008 and the BTK was off 30-40%. I guess we should remember that many of these smaller bio techs have to raise $$$$ to keep operating hence if the market is going south the stock offerings are not as easily sold. If the market reverts to cash and the sidelines then that effects all sectors though, albeit, some worse than others.
If you have a catalyst 2-5 months out then some/many stop losses, (depending on where they are set obviously), may well be triggered. I know many of mine have in the last 2 weeks.
Here is a chart showing the $BTK biotech index and if you overlay it with the DJI you will see the correlations. I am not saying it is a beta of 1 to the Dow but a fall in the Dow will generally result in weakness for all sectors.
Just pull up a chart of 2008 when the Dow imploded and take a look at the bios then. jmho
If you have a catalyst 2-5 months out then some/many stop losses, (depending on where they are set obviously), may well be triggered. I know many of mine have in the last 2 weeks.
Here is a chart showing the $BTK biotech index and if you overlay it with the DJI you will see the correlations. I am not saying it is a beta of 1 to the Dow but a fall in the Dow will generally result in weakness for all sectors.
Just pull up a chart of 2008 when the Dow imploded and take a look at the bios then. jmho
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