That is what I have walked into this morning with the workload I've got at the office today.
I read a piece by Jim Cramer about biotech having had a rough go for a few weeks but may now be coming back to life. He is probably talking about short term trading.
Most clients have exposure to biotech. As I was talking about Japan this morning being a theme that is tough for me to grab onto, biotech is part of an easy theme. The population is getting older and medical technology is advancing at an accelerating rate.
Biotech stocks, in general, will benefit from these trends. The stocks are volatile and periods of aggressive selling will go with the territory. If you have felt some pain from biotech of late but are diversified then you should have also taken in some gain with some other parts of the market.
This is a great example of what I write about a lot, some things are working and some are not. There should always a couple of things not working in a diversified portfolio.
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2 comments:
Which do you think is the better way to go in biotech, indiv. stocks or etfs? Can you suggest any names, and what portfolio percentage do you suggest?
Michael
Roger,
Try to minimize those things that are not working in your portfolio :).
I do not try to create my portfolio by arbitrary diversification into different sectors. I try very hard instead to allow the strongest stocks that are percolating to the surface of the market morass to identify themselves to me so to speak.
The inability to move with the sectors that are moving higher has led to the accepted dogma of diversification of portfolios. Just as you say, most investors plan on having some stocks working and some not. When stocks decline, I get out of them. I only buy stocks that are working at the time of my purchase.
I am sure I have stocks that are not always successful, but I try hard not to limit my individual picks by some predetermined distribution among various sectors.
Just my approach :).
Bob
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