IBB - What's Next For Biotech And Healthcare

• Biotechs have sold off this year along with the broader market. Declines have been more pronounced than prior pullbacks. However, healthcare continues to outperform.
• Federal Reserve's interest rate policy will continue to place a heavy burden on biotechs through much of the third quarter.
• While the downside is limited after a sharp erosion in biotech stocks, gains will be selective with the best chance in the final quarter.
• Biotechs with mature programs and recent positive data releases will have a superior chance to deliver durable gains in the second half.
• Healthcare remains the preferred defensive sector with pharmaceuticals, insurance, and drug distributors well-placed. Growth-focused groups, like medical devices and services will likely take over later in the second half.

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