The portfolios are doing "OK" during this snap back rally, not great. "2000" was up 3.7% today, while "2001" put on 3.2%. They're too laden with "hunker down" stocks to really rip during a period like this one.
Everyone has their own style. Mine is to sit in pop stocks with cushioned downside, hoping that you can rotate from a pop into a bargain.
The game in biotech always needs -- IMO -- to involve a healthy dose of asset conservation. Stay your course, diversify sufficiently, take some profit off the table as you let good stocks run, double down when and if appropriate, and avoid management teams that are arrogant or known for BS. Expect that you'll lose 50% of your net worth, knowing that you'll get it back and more.
If you get a pop with decent timing (while everything else is depressed), you make out like a bandit. If you get a pop with bad timing, you merely do great. Patience is the key, as one can stand to run through both scenarios.
"2000" is up 294%, and I love the components and weighting. "2001" is up 20%, and I'll let most components ride (have doubts about two, and I may blow them out..... maybe not). |
