No one knows what will become of biotech

Yesterday, we pointed out that biotech hit its 2018 low in the days before Christmas and then ended the year on the upswing. So we asked readers: Was that just a blip in a bear market, or did biotech hit a bottom from which it will only rise?

And the results were basically split. About 52 percent rejected the idea that the worst was over, figuring biotech will at some point trade below its 2018 low in 2019. The other 48 percent were more optimistic, betting that the winter solstice set a floor on the industry heading into the New Year.

For whatever it’s worth, the XBI biotech index was up yesterday. On the other hand, the sector’s last big correction, which also worsened in winter, lasted well into the spring.