The S&P Select Biotech Index seems to be consolidating gains following the "fed pivot" rally that propelled the index from deep red to green for 2023.
Following half a decade of consecutive outperformance from 2011-2015, biotech has underperformed the Nasdaq from 2016-2023 for 8 years and the S&P 500 for 5 of those 8 years. Expectations for lower interest rates in 2024, sustained biotech M&A activity, continued new approvals of cutting-edge new therapies and resurgent capital markets activity appear to be converging to reverse biotech’s record relative underperformance.
Topics of conversation in the video:
Developmental stage companies
Follow-on flows and secondary investing
Cerevel Therapeutics (CERE)
Karuna Therapeutics (KRTX)
2024 Set-up
IPOs (Finally)