Biotech Straddling the Lows For the Year; Baker Bros Racked With Losses

The number one go to sector for risk and growth, biotech, has been ripped to shreds in 2016, down 29% and counting.

As markets have lifted in recent weeks, sending the Dow higher by 2,000 points, biotech has done nothing. As a matter of fact, this once loved sector, filled with promise, is trading near the lows for the year.

Much of the negative press is political risk. H. Clinton and D. Trump have both criticized the healthcare industry for excessive profit margins, which come at the expense of the infirmed. Also, the Valeant debacle has offered nothing but negative headline news, preventing new, stupid, investors from entering the fray for some good old fashioned speculation.

My take: this sector is doomed until after the election, or until VRX doubles from here.

According to recent filings compiled by Exodus, the once mighty biotech hedge fund, Baker Bros, is down in the order of 35 some odd percent for 2016.

Cataclysmic.