Biotech investors have been here before.
Stocks are lower on Wednesday and the high-flying biotech sector is leading the way down, with the iShares ETF that tracks the sector falling more than 3%.
And as the sector has weakened over the last several days, this sell off is starting to look at lot like the sell off we saw in the sector last year.
The folks over at Bespoke Investment Group wrote a post on Wednesday comparing the move in the sector over the last two years, and after the second straight year of a 20% move to start the year, the sector looks to be taking a breather.
The Nasdaq Biotech Index has gotten out of the gate fast for the second year in a row ... Just like last year, biotech stocks have been hot to start the year, gaining more than 20% as of last week. The concern for investors now is that the sector has gotten ahead of itself and is due for a fall ...
In fact, from late February through mid April of Ď14, the Nasdaq Biotech Index gave up all of its gains from the first two months and was even down on the year for a brief period, falling a total of 21%. Although the index quickly recovered and finished the year well above its early year highs, investors in the sector certainly donít want to see a repeat of last spring.
Here's the chart from Bespoke.
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