If You Gotta Buy, Buy Biotech

Earnings can go down in a recession, but biotech is at the bottom of its historic price-to-earnings range. Conversely, energy and commodity stocks are vulnerable if commodities turn down and prices drop because investors have priced in rising commodity prices and earnings. Biotech investors have priced in a drop in earnings.

I'm sure there are other assets out there worth buying, but this looks like one of the most attractive for a reversal in the market both long or short term. I don't expect a long-term bull market, but it's always a good idea to have a plan if you're wrong. Chart is from Yardeni Research.

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