Interest rate cuts are currently scheduled, and
LABU strategy.
Lower interest rates:
Interest rate cuts are currently scheduled, and there is a high possibility of additional rate cuts in the event of an economic downturn. Interest rate cuts will have a positive effect on biotech prices. Interest rate cuts have a positive effect on biotech companies that need to invest a lot of money in R&D. Discount rates on future value are lowered. Lower interest rates are likely to attract more investors seeking high-risk, high-returns to biotech. Biotech is one of the sectors representing high risk and high-returns.
Patent Cliffs:
Patent cliff refers to the risk of declining sales of existing blockbuster drugs due to patent expiration. Therefore, demand for mergers and acquisitions (M&A) of new drug development biotech is increasing. Demand for M&A is likely to lead to soaring stock prices soon.
Conclusion:
It is advantageous not to sell at the moment, and it is strategically advantageous not to sell biotech stocks given the interest rate cuts and the looming patent cliff. This is because interest rate cuts have the potential to drive the rise of biotech stocks, and patent cliffs can cause a surge.
Biotech Stock Has Large Short-Term Volatility, But It Has Big Growth Potential In The Long-Term. Let's Hold It Up To 28.