With rates rising, widespread tax-loss selling and fund manager’s either closing the books for 2021 or just closing down altogether, the market has entered a major risk off phase and biotech stocks are the ultimate whipping boy, explains John McCamant, biotech sector specialist and editor of The Medical Technology Stock Letter.
Other than the leading vaccine stocks which have boosters and the omicron variant on their side, there are very few sector stocks even flat for November. Forced liquidation has led to many stocks trading under their cash levels — usually a sign that things cannot get much worse. It should be understood there is a 30-day waiting period before stock sold for tax purposes can be re-purchased.
Technically, biotech stocks have officially entered “oversold” levels and may remain there until the tax-loss recoup periods are over…
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This post originally appeared at MoneyShow.com.