4Q Financial Markets Preview: Wing and a prayer

As might be expected in a volatile and nervous economic climate, biotech investors aren't sure where the markets are going, and prognostications for the fourth quarter reflect their uncertainty. The hope is for a 4Q in line with the trend for the last six years, but whether this quarter will follow or buck the trend is up for debate.

On one hand, many investors don't see anything in their environment - not the slowing economy, not spillover from the subprime mortgage crisis - that would prevent biotech from having its traditionally good fourth quarter. They are thus hopeful that upcoming milestones, along with the prospect of renewed M&A activity and the attraction of the sector as the rest of the economy slows, will propel the group to a strong finish (see "4Q Bounce," A2) ...