4Q Financial Markets Preview: Room to maneuver

The public markets are expected to be volatile at least until the November elections in the U.S., and, accordingly, safe haven biotech stocks - companies with profits - are performing better than their loss-making counterparts. Indeed, the profitable constituents of the BioCentury 100 Index began to separate themselves from the non-profitable companies at the end of April.

If defensive investing is the prognosis for the remainder of the year, biotech will not be shut out, as an increasing number of companies have turned the profit corner, or at least have a growing revenue stream (see "Performance by Profitability," A2). ...