Biotech stocks, which have beaten down over the past couple years, seem to make a selective comeback. Over the past few weeks, I've had a few biotech stocks pop 15-25% in one day. In absolute terms, the gains are small, since many have low single digit prices.
Over the years, I have dollar cost averaged down on several positions. As the biotech resurgence is taking place, I will use the opportunity to sell the lower priced shares at a profit, while holding the high cost shares for longer term gains.
That way I will reduce my cost basis for positions I keep, mitigating the downside pain if the biotechs should fall again.
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This is not financial advice. Please consult a professional advisor.
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