It hasn't been a smooth ride. Health care funds peaked in early March and didn't regain their lost ground until June. By understanding how genes work, scientists hope to create new treatments for disease. In the past few weeks, however, the entire sector has suffered a relapse. Part of that is just Wall Street's usual reaction to a big rally.
Stocks often give back about half their gains after an outsized run-up.
They sell expensive drugs to sick people.'' Political fears could be hurting biotech stocks, too. It's costly to develop new drugs and nurse them through the Food and Drug Administration's approval process. They're scared of any prospect of price controls,'' says Carl Gordon, co-manager of the Eaton Vance Worldwide Health Sciences fund. Health care stocks fare well in the fall and winter, and often languish in the summer. Those are the months to own biotech,'' says Orbitex's Bepler.