The stock trading software is probably one of the greatest advancements of recent times. It particularly helps people to learn to trade from their home, giving access to the market and providing insight on the various stocks out there. With free commission stock trading, the risk is significantly reduced.
Risk is indeed the key factor in any investing decision. Some industries are prone to risk, but the risk can be overhyped as well. If some of the risk can be borne, the attainable growth can be significant.
Underperforming Biotech Provides Value
The biotech industry is underperforming significantly, and that gives it greater value. In spite of the stock market having boomed following Trump's victory in the US presidential elections, biotech has been underperforming. The NASDAQ Biotech ETF ($IBB) did surge right after Trump's victory, but has been losing ground in the past few months. That lends great value to this ETF, making it appear like a significant bargain. Buying $IBB appears logical when you consider what's keeping the sector down, and that has to do with the political climate. Trump did make certain negative remarks about the biotech industry in his early Presidency that made investing in this sector a nervous proposition. But by Trump's various decisions, it has been reasonably clear that his statements and actions are not always related. That would indicate that biotech would not be hemmed in.
Fear of Regulatory Restrictions Unfounded
The major concern is that since Trump has not succeeded in replacing Obamacare, now finally admitting the enormity of the task, and there is a great deal of complicity involved in the process, regulating therapy costs is seen as the easiest manner to keep costs in check. However, that's easier said than done. The replacement bill for Obamacare came under opposition from the traditional Republicans in the House who believe in the free market. They aren't likely to accept any kind of governmental control of pharmaceutical companies.
With that political solution, it is unlikely for any means of government regulation of the biotech industry to take effect. While there are risks involved, investing in a diversified manner in the industry through IBB is cheap. And biotech does have a lower forward P/E than the overall healthcare industry. That takes away a good deal of the risk.
And while the risk factor and the volatility won't totally desert biotech stocks, IBB offers investors biotech exposure which at these levels is a great value option.
The right stock trading software can go a long way in helping you make the right decisions when you're trading stocks online. TradeZero offers you all the tools you need. Get in touch with us at +1 954-944-3885 or email firstname.lastname@example.org.
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