The Daily Interview: The Outlook for Biotech Stocks

Biotech investors: Fasten your seatbelts, severe turbulence ahead.

Monday's almost 8% drop in the biotech sector suggests that investors don't have the stomach anymore for high-risk investments, says Stefan Loren, managing director and biotech analyst at Legg Mason Wood Walker. While Loren still believes a sector recovery is inevitable, many of the old rules just don't apply anymore.

We talked to Loren about his reaction to Monday's trading and his thoughts on what biotech investors can expect in the next few days and weeks. ...