If History Repeats, Biotech Traders Will Have Fun Next Week. Here's Why.
As if healthcare investors need more reasons to pay attention to next week's J.P. Morgan Healthcare Conference, biotech stocks outperform the S&P 500, historically, during the week of the confab.
Take a look at the chart included in a preview note published by J.P. Morgan's analysts. The data, itself, come from Bloomberg.
We assessed BTK performance relative to the S&P 500 during the week of the J.P. Morgan Healthcare Conference over the past 13 years. We observed that 85% of the time (all but 2 years), the BTK outperformed the S&P 500. From Monday to Friday during the week of the conference, the BTK increased on average by 3.0%, vs. flat S&P 500. Thus, the BTK outperformed the S&P 500 by ~2.9% on average during the week of the conference over the past 13 years
I would have preferred to see the analysis conducted with the more inclusive Nasdaq Biotechnology Index (NBI) because the BTK tracks fewer stocks.
-- Reported by Adam Feuerstein in Boston.
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