Mart- NP - In your spot in time, July 2011, the bio sector had a far worse% drop than did the general market. It was more of a Sector Drop at that point in time vs what I was originally posting about, a general decline.
In your instance the bio sector was hit by a 27% drop and the General was only hit by a 15% drop/correction. That is why I chose 2008 instead; it was a general market crash with all sectors hit, banking, real estate, bios etc., Not a sector crash and general dip.minor correction.
- **IMO we are just not speaking of similar circumstances with similar historically significant general market conditions, so it is not really the same. In your case the bio index performed far worse than the general market and in mine it was the other way around. Just depends what you are looking at, dramatic general market decline, or a minor correction.
I took **2008 since that crash was, by far, the most dramatic general market crash lately and compared the bio dip to that. The general market being off 50%, or near it, and the bio sector being off 30-40% depending on time points, *hence my conclusion of "somewhat insulated"
I noted on the charts originally the correction you refer to; but the General Market correction was only from Dow 12.9k to Dow 10.9k approx 15%. One was a crash 2008 with near 50% lost and one was a dip with a large sector correction where the general market lost 15%.
*In your case/example there is definitely no mitigation of drop, but it also shows the bios having a beta of almost 2 with the Dow and I am not sure that is the case, but I will see if I can find it somewhere for the heck of it.
Just think we are speaking a bit of apples and oranges, all perspective and what you use as a chart basis.
BOL my friend,
T2m
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