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The Financial Times reports that U.D. biotech stocks have reached a new high this week, with investors betting heavily on their continued growth.
The Financial Times reports that U.D. biotech stocks have reached a new high this week, with investors betting heavily on their continued growth.
As quoted in the article:
Nasdaq’s Biotech Index has climbed 30 per cent this year, surpassing last month’s record mark, with stock prices for many constituents soaring on the back of heightened merger and acquisition activity and positive drugs trial results.
This year’s stellar run for biotechs, with the broad S&P 500 only up 2.6 per cent since January, represents the latest leg of a mammoth 580 per cent gain since the bull market for US equities began in March 2009. Against the backdrop of low interest rates, moribund inflation and lacklustre US economic expansion, the high growth potential of biotechs has greatly appealed to investors, in turn justifying increasingly heady valuations.