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Biotech Investment: Where to turn in a stock market crash

Posted February 21, 2008

“As all of us have learned the hard way, if you’re not looking in the right place it can be almost impossible to find winners. That’s why today we’ll turn our attention to a sector that didn’t just survive every recession in the U.S. over the past two decades… it handsomely outperformed the major indexes.” — Andrew Mickey

by Andrew Mickey

Baltimore – (TFN):  It’s getting tougher and tougher to find safety. The tech sector is getting hit. Formerly high flying overseas are giving back some of their handsome gains. Even with oil prices hitting $100 a barrel again yesterday, the entire oil sector is off about 10% for the year.

The bears have had their way. And, frankly, there aren’t too many drivers out there to help get things turned around. However, that doesn’t mean there aren’t opportunities; they’re just getting tougher to find.

But as all of us have learned the hard way, if you’re not looking in the right place it can be almost impossible to find winners. That’s why today we’ll turn our attention to a sector that didn’t just survive every recession in the U.S. over the past two decades… it handsomely outperformed the major indexes.

Investing in Biotech: How bad can a recession be?

There have only been two recessions in the past 20 years, according to the National Bureau of Economic Research. The first lasted three quarters from July of 1990 through March of 1991 and the second started in March of 2001 and ended November later that year.

It wasn’t that long ago, was it? Do you remember how truly bad a recession was for your portfolio?

Chances are it wasn’t too bad at all. During the recession of the early 1990s, both the Dow and S&P 500 increased 1% and 3.5%, respectively. During the recession that kicked off the new millennium, the Dow fell 11.7% and the S&P 500 was off 12.6%.

All in all, nothing too extraordinary for a recession in the overall markets. Yet, there was one sector that almost tripled the returns of the major indexes during both recessions: biotech. Read on to learn where you can find the best biotech deals in the current market.

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Posted by Andrew Mickey · Filed Under US Stocks and Markets 

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