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Biotech sentiment is super bearish today, as the sector has been crushed over the last year. There’s blood in the water, especially for small and mid-cap players, and everyone’s looking for what caused the carnage.
There are many factors at work in the markets today, but one big factor over the last year or so has been the progressive drumbeat of negative catalysts, sending both individual stocks and sector sentiment cratering.
As the chart shows below, according to data from Morgan Stanley, the percentage of positive news events for SMID-cap biotech has gone from 60% in early 2020 down to below 30% in the first two months of 2022. But…