IDNA - XBI And IBB: Sell Technology And Buy Biotech The Only Undervalued Non-Cyclical Growth Sector

• The macroeconomic backdrop of Fed interest rate hikes is rapidly deflating overvalued technology companies and "crypto-collectibles." We expect the technology sector to underperform value and biotech.
• After the sell-off, biotech companies' valuation is close to the 2018 level even though the companies are better financed and many clinical catalysts are lined up.
• With COVID19 abating, supply chain and operational disruption are improving; as such, we expect faster drug discovery and more clinical catalysts in due course.
• First time in history, Biotech became cyclical due to COVID19, and with COVID19 abating, we view Biotech to become an undervalued, non-cyclical growth.

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