What's Behind the Biotech Crash?

What's the real story behind the rise and fall of the biotech bubble?

Apr 23, 2014 at 7:00PM

Biotech investors aren't used to seeing shares of their favorite companies tumble, but that's exactly what's been happening so far this year. The iShares Nasdaq Biotech Index, the ETF that tracks the performance of this sector, has started to rebound in recent days. However, the index is down almost 4% year to date.

IBB Chart

Source: IBB data by YCharts

To gain more insight into why this sector is underperforming the broader market this year, and reasons why big pharma company Sanofi (NYSE:SNY) could be one way long-term investors may get exposure to this sector, analysts Matt Koppenheffer and Max Macaluso discuss the recent tailwinds that drove up biotech stocks in 2013, and the headwinds that the industry is now facing. The video below, from The Motley Fool's show Where the Money Is, also covers the reasons behind big biotech Gilead's recent poor performance, and challenges that the company is currently facing.

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Matt Koppenheffer has no position in any stocks mentioned. Max Macaluso, Ph.D. owns shares of Celgene and Gilead Sciences. The Motley Fool recommends Alnylam Pharmaceuticals, Celgene, Gilead Sciences, and Isis Pharmaceuticals. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

A Financial Plan on an Index Card

Keeping it simple.

Aug 7, 2015 at 11:26AM

Two years ago, University of Chicago professor Harold Pollack wrote his entire financial plan on an index card.

It blew up. People loved the idea. Financial advice is often intentionally complicated. Obscurity lets advisors charge higher fees. But the most important parts are painfully simple. Here's how Pollack put it:

The card came out of chat I had regarding what I view as the financial industry's basic dilemma: The best investment advice fits on an index card. A commenter asked for the actual index card. Although I was originally speaking in metaphor, I grabbed a pen and one of my daughter's note cards, scribbled this out in maybe three minutes, snapped a picture with my iPhone, and the rest was history.

More advisors and investors caught onto the idea and started writing their own financial plans on a single index card.

I love the exercise, because it makes you think about what's important and forces you to be succinct.

So, here's my index-card financial plan:


Everything else is details. 

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