iStock Analyst -- “World stock indexes have struggled to continue the rally that began in 2009. Investors have begun to question the validity of the rally. However, there are small pockets of strength through the first two months of 2010, and the one sector that may be poised for a big year is the biotech stocks. Through February 19th, the Dow Jones US Biotech Index is up 6.1% versus a loss of 0.5% for the S&P 500. Granted this is a short timeframe to base any type of long-term investment decision on, but the last few years also indicate the biotech sector is setting up to beat the benchmarks in 2010. As the S&P 500 gained over 23% in 2009, the Biotech Index was only able to manage a gain of 5%, making it one of the worst performing sectors in the US market. The yearly rotation of money can be traced back another year as the Biotech Index gained 3% in 2008 as the S&P 500 lost 38.5%. If the pattern continues, the biotech stocks should continue the early outperformance throughout the entire year,” Matthew McCall Reports From Investopedia.
