The Market’s Safest Sector Also Has Enormous Potential to Rise

Considering we’ve just had the worst credit crisis in 80 years, and one of the worst-ever bear markets in stocks, the new “defensiveness” shown by biotechnology stocks is extraordinary.

Biotech is typically a wild sector. Most people don’t think of it as place to find safe stocks. But have a look at the accompanying chart, which tracks the SPDR S&P Biotech ETF (XBI) over the past...