The stock market has been booming for years, and bears have been warning of its imminent collapse the whole time, and yet everything has been fine. Irritably condemning people warning of bubbles has even become its own bubble! Still, nervous and trauma-wracked financiers continue studying the markets for any sign of danger. Worrying about the value of tech stocks? That is so 2013. Today, let us obsess over another sector that could hold riches... or peril! The Wall Street Journal reports:
The Nasdaq Biotech Index is up about 240% since the beginning of 2012. That dwarfs the 82% gain logged by the Nasdaq-100 tech index of the largest technology companies...
However, biotech stocks often are viewed as a gamble for investors: high-risk and high-reward propositions that can drop like a rock if a drug trial fails or funding runs out. Biotech shares have been hammered en masse several times, notably in 1990, 1993 and 2000.
Everything will be fine, as long as none of these experimental drugs fail.