Is the Rally Over for Biotech Funds?

After five years of considerable returns, biotech stocks gains have been halted by the stock market turmoil. We take a look at the stats

Karen Kwok 21 January, 2016 | 1:02PM

Turmoil has returned to global stock markets, and investors are struggling to see a way through the market volatility. The pessimist predict that the rest of 2016 will be just as rocky as these first few weeks; but is the reality as grim as all that?

“Markets are still struggling with falling earnings and deteriorating conditions in credit markets, although there was at least some stabilization in China's currency,” said Russ Koesterich, BlackRock’s Global Chief Investment Strategist.

“But the losses were widespread — and brutal. U.S. small caps have now entered a bear market; biotech, a popular momentum trade, is down more than 30% from last summer's high; and stocks in China have suffered a mini bear market, down 20% in just two weeks.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
AXA Framlington Biotech R Acc172.52 GBP-3.46
Candriam Eqs L Biotech C USD Cap552.09 USD-4.03
Pictet-Biotech R USD610.98 USD-1.48

About Author

Karen Kwok

Karen Kwok  is a Reporter for Morningstar.co.uk

Audience Confirmation


By clicking 'accept' I acknowledge that this website uses cookies and other technologies to tailor my experience and understand how I and other visitors use our site. See 'Cookie Consent' for more detail.

  • Other Morningstar Websites