4Q14 Financial Markets Preview: 'Perfect world' - for now

Even as the major biotech indices creep toward new all-time highs, buysiders are hard-pressed to identify any major risks that could cause a downturn in the fourth quarter. At the same time, there are few major milestones before year end, leading investors to scout ahead for catalysts in 2015.

The recovery of the biotech indices from their spring swoon was driven almost entirely by the large cap names. Buysiders will therefore look to add to returns before year end by cherry-picking in the small- and mid-cap space, where prices have continued to drift...