Biotech sector breaking out

Xbi S&p biotech sector just broke out of a 2 year consolidation pattern. Last all time high was around 88 back in September 2015. Good things come to those that wait in the stock market.

From a fundamental standpoint, healthcare is going to be huge. Baby boomers seem pretty bent on living as long as they can and they have plenty of cash to do it. Medicine is only going to get more complex and costly, especially since universal healthcare (ie government) is writing the check. Throw in some cancer, heart disease, and a few epidemics, and this spells only good times.

My only beef is that this sector is heavily regulated, initial capital is costly, and time to get drugs down the pipeline is extremely lengthy. Most companies are in the red, and a single drug can make or break a company. Rather than have all my money in one basket, I’d rather have it in an etf.

I also like a bit of leverage so I am in Labu at around 75. It is bigly volatile so I may sell it around the 105-115 level, depending on the tea leaves in my cup. As always, this is just my opinion and what I’m doing with my money.