SEE MORE: Clinton Delivers Poison Pill To Biotech ETFs
During the presidential campaigns, biotechnology and pharmaceutical companies like EpiPen allergy shot maker Mylan NV and Valeant Pharmaceuticals International have come under fire over their high drug prices, following Hillary Clinton’s censures.
While Trump was expected to be a proponent to free-market health care, drug company executives and observers warned that the President-elect could scrutinize prices as a populist issue.
“What to do if this sector breaks down? Stock investors should watch what other technology sectors do, for instance by following the growth index ETF (IVW). In case most other sectors are not breaking down, there would not be too much risk of ‘contagion’. Specifically to biotech investors we can only say to examine the biotech stocks in their portfolio, and ensure their biotech positions only cover sector leaders,” adds ETF Daily News.
For more information on the biotech sector, visit our biotechnology category.