$XBI: Biotech Sector's Potential Outperformance in 2024, Especially Pre-Election Volatility in 1H

The biotech sector faced challenges in the previous year, mainly attributed to high inflation and interest rates, particularly impacting small-cap biotech firms in the difficult fundraising environment of summer 2023.
As a consequence, numerous companies experienced a significant drop in their market caps, with some even falling below the 100 million mark, a rarity for phase 2 oncology companies. In extreme cases, valuations plummeted to as low as 30 million.
Several biotech entities persist in trading under their cash value.
Looking ahead, 2023 marked the peak of interest rates, and there's a possibility of rate cuts in 2024. This scenario presents an opportunity as the low valuations currently observed can be considered deep discounts. Positive outcomes from pending catalysts could transform these low valuations into golden opportunities in hindsight.
The key lies in meticulous selection from the multitude of biotech companies. Positive results from pending catalysts can lead to significantly rewarding valuation gaps, particularly in the fields of Oncology, CNS, Unmet Need, and rare diseases.
Personally, I am focusing on stocks with pending catalysts and current valuations, including $PDS Biotechnology (PDSB.US)$ , $eFFECTOR Therapeutics (EFTR.US)$ , $Tempest Therapeutics (TPST.US)$ , $Relmada Therapeutics (RLMD.US)$ , $Amylyx Pharmaceuticals (AMLX.US)$ , $Inozyme Pharma (INZY.US)$ , $Corvus Pharmaceuticals (CRVS.US)$ , $Ocular Therapeutix (OCUL.US)$ $MDxHealth (MDXH.US)$ $Checkpoint Therapeutics (CKPT.US)$ $Reviva Pharmaceuticals (RVPH.US)$ $Day One Biopharmaceuticals (DAWN.US)$ $Mereo BioPharma (MREO.US)$ $X4 Pharmaceuticals (XFOR.US)$ , and $Sera Prognostics (SERA.US)$ . These stocks are poised for potential gains, given favorable catalyst outcomes and their current valuation positions.