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Three 100% + Gainers Already In 2014: Can You Say Healthcare & Biotech
Do you think people who have missed this rally should pile on now because you think there is still upside or people should take profits if they are already in it?
Reply to @cman: There may be upside potential in biotech and healthcare in general but rallies like these can also go the other way very quickly. Most would agree that a small percentage in these sectors is prudent.
Reply to @JohnChisum: That was the point I was trying to make. Performance chasing with these kinds of headlines never end well. Even people who use TA would never pile on with such a runup because the risk/reward is not compelling.
Also unless one times the bottom and top perfectly with buy and sell, nobody realizes these kinds of gains. A very similar thing happened with BioTech and Airline sector last year but the realized gains would have been much less. It is usually too late to get in by the time these kinds of headlines come out.
Either one has to develop the type of intuitive/seat-of-the-pants investing Ted seems to do or rely on some technicals to detect trends early enough to get in and have an exit plan. Getting in with headlines like this with no exit plan is a recipe for disaster regardless of what might happen to these sectors going forward.
Reply to @cman: We see eye to eye on this. Investors should also not discount the potential of biotech especially in the future so having some exposure for the long haul is a good idea. Chasing individual rallies however is another story. I would also separate biotech and healthcare. Healthcare is too general and most index funds cover that quite well. Biotech and life sciences in particular are a sector that should be looked at. Advances not only in drugs but bionics, prosthetics, etc are going to be big going forward. Just my opinion.
Comments
Regards,
Ted
Also unless one times the bottom and top perfectly with buy and sell, nobody realizes these kinds of gains. A very similar thing happened with BioTech and Airline sector last year but the realized gains would have been much less. It is usually too late to get in by the time these kinds of headlines come out.
Either one has to develop the type of intuitive/seat-of-the-pants investing Ted seems to do or rely on some technicals to detect trends early enough to get in and have an exit plan. Getting in with headlines like this with no exit plan is a recipe for disaster regardless of what might happen to these sectors going forward.