Biotech grabbed the headlines this morning with its standout weakness while the market otherwise entertains a 40 point Dow day aka real calm.
That’s because everyone wonders what the implications of our next under-the-surface correction might be. Now that the basic material (oil) patch has already been incognito corrected, our methodical market can turn its attention to biotech—correcting their flamboyant valuations.
“The short answer is YES.” – Raul
In the 09/20/15 Issue of the Exodus Strategy Session, we looked closely at the Biotech industry’s market cap. If you include the all Drug Industries into the equation the market cap equates to just below 9%. Biotech as a standalone industry equals a mere 0.68% of the equity complex, almost paltry in size. The rest of the data is presented below:
Data source: Exodus Market Intelligence
