If you missed the first biotech run, the market is giving you another chance to get in. Clearly the biotech revolution is upon us, however, the leading stocks in the sector got way ahead of themselves during the first few months of the new year. The biotech stocks are now correcting and the drop has reached a point of capitulation. This is the time investors should want to buy, when there is blood in the streets. The stocks will rise again, due to the fact that the breakthrough technology will be tremendous over the next several years.
Some stocks are down way too far to ignore.
Still, buying individual stocks like these can be very risky. Because of this risk, trying to pick the winners may be quite difficult. Unless you know the biotech world well, I instead suggest playing the sector via mutual funds. After I wrote my first piece on the biotech sector earlier this year, the stocks and funds I mentioned as good bets soared. Recently they have come back to Earth, giving those who missed the first run another chance to get in.