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
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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.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
AXA Framlington Biotech R Acc247.22 GBP0.91Rating
Candriam Eqs L Biotech C USD Cap762.99 USD0.48Rating
Pictet-Biotech R USD768.90 USD-1.28Rating

About Author

Karen Kwok

Karen Kwok  is a Reporter for