Biotech Drop: Neither A Bubble-Burst Nor A Growth-Warning

Wednesday, March 26, 2014

As biotechnology stocks have fallen, visions of a bubble bursting have risen. After all, as The Wall Street Journal reminds us, “What goes up must come down….” Then there are those sky-high valuations and all those IPOs. Clearly, a disaster was waiting to happen, and now investors (again, per the WSJ) are “…learning the hard way” the lesson of messing around with fast-climbing stocks. Search for “biotech bubble,” and you can see the popularity of this viewpoint.

Not content with focusing on biotechnology, some pundits are attempting to spread the fear that the biotech drop is a precursor of worse to come to growth stocks everywhere. You know – the old slippery slope, domino theory logic.

This article is published on Forbes.com


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