SEE MORE: Resisting the Temptation of Biotech ETFs
Investors who are closely watching the presidential race will want to keep an eye on Democratic nominee Hillary Clinton in the coming months. If Clinton makes her way to the Oval Office and implements more regulation on pharmaceutical drug pricing, biotech companies may underperform the broader market.
“Thus, while biotech has been a star sector for the better part of a decade, one might not want to be married to the sector given that its uptrend is hanging in the balance here. Because if these trendlines are in fact snapped, we assure you that it won’t be so fashionable to own biotech stocks anymore,” adds See It Market.
Active traders looking to bet against biotech stocks have options, including the Direxion Daily S&P Biotech Bear Shares (NYSEArca: LABD) takes the -3x or -300% daily performance of the biotech sector, ProShares UltraPro Short NASDAQ Biotechnology (NasdaqGM: ZBIO) tracks the -3x or -300% daily performance of the Nasdaq Biotechnology Index and ProShares Ultrashort Nasdaq Biotechnology (NasdaqGM: BIS) tracks the -2x or -200% daily performance of the biotech space.
For more information on the biotech sector, visit our biotechnology category.
iShares Nasdaq Biotechnology ETF (NasdaqGS: IBB)