Biotech stocks, particularly those focusing on a COVID 19 vaccine, are in my sights for today and for the long term. The only question is which of the pharma companies will develop the vaccine and see its value rise tenfold or even a hundred fold, and which companies will fail to reach the finish line and lose value. The answer is…we don’t know.
So to hedge your bets, my advice would be to invest in a biotech ETF. In this way you will probably pick the winner within the larger group of companies the ETF invests in. My prediction is that, even given the downside of other companies within the ETF, the large rise of the key companies will more than compensate your investment and mitigate your risk. My specific biotech ETF recommendations are BBC, IBB, and BBH.
DISCLAIMER – The author of this article has an extensive background in finance and investment, but is currently not employed by any bank, brokerage house, investment firm, or publicly owned company. His practice is to fully disclose if any recommended individual stock, bond, ETF, mutual fund, private partnership, private REIT, or annuity is in his financial portfolio.