As a contrarian, I love nothing more than seeing an entire sector of stocks fall deeply out of favor. When sellers overwhelm buyers, fundamentals are forgotten and stocks can become incredibly mispriced. Today, my contrarian focus is locked in on the biotech sector. Investors are fleeing biotech stocks. In 2021, the SPDR S&P Biotech ETF (NYSE: XBI), an exchange-traded fund (ETF), dropped 35% from its February peak through the end of the year. After that dismal performance, many folks thought that 2022 would be a rebound year for biotech stocks. |
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