While pharmaceuticals, a defensive sub-segment of the health care industry, weathered the heart of the bear better than most areas, biotech has a history of volatility because of the hit-or-miss nature of their operations. Still, biotech has risk-reduction qualities as a diversifier in a person’s portfolio because biotech ETFs had the lowest correlation with the S&P 500 in the 2007 to 2009 bear market.
The question on many people’s minds is whether these ETFs can still do well in the shadow of health-care reform uncertainty. The answer is, “Yes”. To read more of Gary Gordon’s article, go to page 16 of the upcoming digital issue of EQUITIES Magazine. To access this issue of the magazine and more, sign up for a free one-year subscription to EQUITIES Magazine.
About EQUITIES Magazine:
Since 1951, EQUITIES has served both retail and institutional investors by examining industry trends, analyzing strategies and opportunities, and profiling financial leaders and emerging public companies. Its global audience increased dramatically after the launch of its European and digital versions, as well as its website, which provides free real-time market quotes and a free customizable, real-time portfolio-management interface. EQUITIES is also one of a select group of publications available on the Apple iPhone.
