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Closed-End Fund Market Commentaries


Biotechnology Stocks Have Not Been This Cheap In A Decade

Jan 31, 2017
Click here to access Biotechnology Stocks Have Not Been This Cheap In A Decade

View from the Observation Deck

1. From 12/31/06 through 12/30/16,the S&P 500 Biotechnology Index posted an average annual total return of 13.92%, compared to 9.57% for the S&P 500 Health Care Index and 6.94% for the S&P 500 Index, according to Bloomberg.
2. Over that 10-year period,the average year-end P/E ratio on the S&P 500 Biotechnology Index was 19.00.As indicated in the chart, the year-end P/E estimates for 2017 and 2018 are significantly below the period average.




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