Reported 11 months ago
The biotechnology industry relies heavily on funding for innovative research and development, making it highly sensitive to interest rates. With expectations of a rate cut by the US Federal Reserve in September, the market believes the biotech industry may benefit. Historical data shows that biotech stocks typically perform well after the first rate cut, with potential gains of almost 30% if held for a year. Lower rates ease funding costs, leading to increased IPOs and investor confidence. Overall, the outlook for the medical industry is positive, advising investors to focus on innovative small to mid-sized biotech companies specializing in gene therapy, gene editing, and new drug delivery technologies.
Source: YAHOO