'US rate cut trade' begins! With the decision of the Federal Reserve, the biotech stock counteroffensive begins!?
The Federal Reserve is expected to implement a rate cut in September. As Wall Street looks for the sectors that will benefit the most from the rate cut, Morgan Stanley is focusing onbiotechnology.imminent rate cut in the US,attractive valuationand a series of positive catalysts make biotechnology stocksIn the coming quarters, we are aiming to achieve high performance.That's right.
In early 2021, biotechnology stocks soared to their highest levels due to expectations for new coronavirus vaccines and treatments. However, as the pandemic subsided, biotechnology stock prices also declined. In the latter half of 2023, investors expect that the Federal Reserve will cut interest rates in early 2024, causing biotechnology stocks to temporarily surge. However, due to higher-than-expected inflation rates at the beginning of the year, the Federal Reserve decided not to cut interest rates, dampening the enthusiasm. With inflation rates steadily declining and a potential interest rate cut by the US Federal Reserve in the near future, analysts believe it will be a tailwind for the biotechnology sector. Since mid-July when the US Consumer Price Index (CPI) dropped to an annual rate of 3%, biotechnology stocks have outperformed the overall stock market.the Federal Reserve is expected to cut interest rates in early 2024biotechnology stocks temporarily surgeddue to higher-than-expected inflation ratesthe Federal Reserve decided not to cut interest ratesSince mid-July, when the US Consumer Price Index (CPI) dropped to an annual rate of 3%, biotechnology stocks have been outperforming the overall stock market.Criticism.
Looking at the overall market trends this year, not only the 7 super large US tech companies,Multiple biopharmaceutical stocks are updating their all-time highs one after another.Among them, the leading US pharmaceutical company $Eli Lilly and Co (LLY.US)$and $Novo-Nordisk A/S (NVO.US)$, a leading provider of surgical robots $Intuitive Surgical (ISRG.US)$, a leading US healthcare institution $HCA Healthcare (HCA.US)$, Strong in cardiovascular treatment $Boston Scientific (BSX.US)$, a major immunotherapy company $Regeneron Pharmaceuticals (REGN.US)$, major pharmaceutical company $AstraZeneca (AZN.US)$, $AbbVie (ABBV.US)$, $Novartis AG (NVS.US)$, a world leader in the field of orthopedics $Stryker Corp (SYK.US)$and others hit record highs this yearwith a growth range of 18%-64%is recorded.
When interest rates are low (especially when interest rates are still high but starting to decline),M&Aや統合活動の活発化、
The interest rate cut by the US Federal Reserve has a positive impact on the biotechnology industry.It has a positive impact on the long-term investment trends.、Improvement in the funding environment,Increased M&A and integration activities,Improved risk preference of investors,The increase in research and development investment,Improvement in market liquidity, andImprovement in market confidencewill promote the sustainable growth and innovation of the biotechnology industry. Therefore, against the backdrop of the Fed's interest rate cuts, the biotechnology industry is expected to become an area of focus as a medium- to long-term investment opportunity.
モルガン・スタンレーは、重要な臨床試験結果を控えているバイオテクノロジー企業に注目している。金利が低下する中、これらの臨床試験でポジティブな結果が出れば、There is a possibility of obtaining a stronger market response than usual.There are 'Clinical Catalyst', which are called these securities. Morgan Stanley has established stable and firm positions in commodities and imminent catalystsThe so-called 'Clinical Catalyst' securitiesThe securities called 'Clinical Catalyst'
●個別株
Clinical Catalyst:Morgan Stanley is paying attention to biotechnology companies that are awaiting important clinical trial results. With interest rates declining, positive results from these clinical trials could lead to a stronger market reaction.Established stable and firm positions in commodities and imminent catalystsIdentified stocks to hold. This provides a safety net through established business foundations, allowing for risk mitigation in tough times while also enabling the pursuit of high-risk, high-return projects. This strategy ismore defensive than other strategiesand becomes a more suitable option if the market environment deteriorates.are high risk, but offer high returns to match..
Clinical Catalyst:Morgan Stanley is paying attention to biotechnology companies that are awaiting important clinical trial results. With interest rates declining, positive results from these clinical trials could lead to a stronger market reaction.Established stable and firm positions in commodities and imminent catalystsIdentified stocks to hold. This provides a safety net through established business foundations, allowing for risk mitigation in tough times while also enabling the pursuit of high-risk, high-return projects. This strategy ismore defensive than other strategiesand becomes a more suitable option if the market environment deteriorates.are high risk, but offer high returns to match..
Stocks with both value and growth characteristics: ：IBBはバイオテクノロジー・セクターの株価加重インデックスに連動するETFで、資産規模は7 billionドルを超える。 このETFは、大型株の安定性と小型株の高収益をバランスよく兼ね備えており、、、などの大手バイオテクノロジー企業を保有している。 バイオテクノロジー・セクター全体に投資したい幅広い市場参加者に適している。
Biotechnology ETF
Bio-pharmaceutical companies usually have significant upside potential, but also come with higher risk. For general investors, it may be wiser to choose a biotechnology ETF with high liquidity and a long-term excellent performance, as evaluating individual stocks is difficult.
IBB is an ETF linked to the stock price-weighted index of the biotechnology sector, with assets exceeding $7 billion. This ETF effectively balances the stability of large-cap stocks with the high returns of small-cap stocks. $Regeneron Pharmaceuticals (REGN.US)$, $Amgen (AMGN.US)$, $Gilead Sciences (GILD.US)$It is suitable for a wide range of market participants who want to invest in the biotechnology sector, including major biotechnology companies.
XBI is an ETF that tracks the performance of the S&P Biotechnology Select Industry Index, with assets under management exceeding 8 billion dollars. $Amgen (AMGN.US)$, $Gilead Sciences (GILD.US)$, $Vertex Pharmaceuticals (VRTX.US)$
Aims for an investment performance of 3 times (300%) the daily performance of the S&P Biotechnology Select Industry Index. Suitable for high-risk tolerant investors.
This article utilizes automatic translation in certain parts.
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Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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