Typically when the stock market goes into ‘risk-off’ mode, biotechnology companies get hit harder than most. Not this year.
The Nasdaq Biotech Index is down year-to-date but outperforming the broader market by a decent margin. The unusual bear market alpha stems from a variety of factors, including depressed valuations heading into 2022 and, in recent months, a string of favorable drug development headlines.
The headlines have been particularly good for a trio of small cap biotechs. And with their stocks starting to move off lows, the momentum may have staying power.
This post appeared at Dynamic Wealth Report.