David, some people look at a can of Miller Lite and see a can of beer. Others look at a can of Miller Lite and see a thing of beauty. Fortunately, I see both!
What I mean is that you see a bunch of mutual funds and index funds that give distributions before December. I look at Fidelity mutual funds and index funds and see massive distributions thru-out the first few weeks of December.
The distributions do not have to be from biotech funds. Just the fact the investors are getting hit with them is causing tax worries.
So...... What is the unhappy investor to do with all these taxable gains? Ho haaaaaa! He currently holds this stupid little biotech stock that's down about 15% or more. So, he unloads the little fellar, and then the next guy does the same thing. And so on, and so on, until the biotechs, or any other downtrodden sector, gets beaten into the ground!
The bottom line: Some people are unloading biotechs for tax loss selling. Others are backing up the truck (hmmmm, small truck) and loading up on them. I'm buying into this selling. However, I've loaded my garage with cases of beer and don't plan on eating next year. That is, unless we get a "Mother of ALL" biotech rallies!
Go LGND.
Happy Holidays, Bob
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