Biotech Stocks 2024 Second Half Outlook - Buy Biotechs

(9min)

Summary

  • Biotech indexes lagged broader market indexes in the first half of 2024, and trade at the same level as in early 2022.
  • Biotech valuations are closely tied to the Fed's interest rate policy and are highly correlated to the 10-year yield.
  • Inflation is likely to trend lower, and, along with rising unemployment, should persuade the Fed to cut rates this year in September.
  • An attractive opportunity for biotechs at the turn of an interest rate cycle that augurs well for above market returns over 2024 and beyond.
  • Looking for a portfolio of ideas like this one? Members of Prudent Healthcare get exclusive access to our subscriber-only portfolios. Learn More »

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Biotech Pulse

During the first half of 2024, biotechnology indexes lagged as broader market indexes reached new highs. The Nasdaq (QQQ) and S&P 500 (SPY) indexes increased by 18% and 15%, respectively. The Nasdaq Biotechnology Index (

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This article was written by

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I have gained extensive experience as an Analyst, working in both Buy (Asset Management) and Sell (Investment Brokerage) side roles, as well as holding positions in Strategy and Finance within the technology services sector. Over the years, I have focused on publishing quantitative model portfolios that prioritize risk-adjusted returns.

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Analyst’s Disclosure:I/we have a beneficial long position in the shares of XBI either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Although there are no personal account positions, SOME STOCKS MENTIONED CAN ALREADY BE PART OF THE PORTFOLIOS OF FAMILY AND ASSOCIATES and retirement accounts like IRAs and can be bought/sold in the next 72 hours. The stocks mentioned may already be part of the Prudent Biotech, Prudent Healthcare, or Prudent Small Cap model portfolios. As always, kindly do your due diligence. Biotechs and small caps carry a higher risk of losses than the broader market. Opinions can change with time and additional data, with no obligation to update. Companies mentioned here may not be favored in the future as market trend changes and/or new information emerges, and no relevant portfolio updates will be provided unless you are a model portfolio subscriber. PrudentBiotech.com, PrudentHealthcare.com, PrudentSmallCap.com, Graycell Advisors, or any other associated names and entities are not registered investment advisors (RIA) and publish quantitative-driven model portfolios for investors and RIAs. Stocks mentioned in the article may be in the past, present, or in the future, be part of the various model portfolios for subscribers. Past performance is not a guarantee of future results. The information here is only provided for a general informational purpose and not as a recommendation and is not guaranteed to be complete or accurate.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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