Citibank urges for caution on biotech stocks
Medicine is currently one of the most promising sectors in terms of growth, but investors are advised to be cautious when looking to increase holdings of biotech stocks this year, said Citigold Wealth Management ( ).
Over the last 12 months, 109 of the 150 firms listed on the Nasdaq Biotech Index lost money, said Citicorp Vice President Spencer Wang ( ) at press event earlier this month.
Among the 41 profitable companies, only five had income over US$1 billion, Wang said, adding that these five accounted for 83 percent of total earnings generated in the Nasdaq Biotech Index.
Wang said investors should be wary as biotech continues its popularity streak and focus on the dollar-denominated big-cap performers.
Tokyo stocks are also a wise investment, as many listed firms have stabilized after rocky trading in 2012 and may offer safe financial results, he said.
Citi is a leading global financial services company with 200 million customer accounts in over 160 countries and jurisdictions.
It offers financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services and wealth management.