Biotech was one of the best-performing industries from 2012 to 2022. The iShares Biotechnology ETF and the SPDR S&P Biotech ETF markedly outperformed the S&P 500 over this period, thanks to an innovation boom spearheaded by the human genome project and ultralow interest rates.

However, in 2022, a pivotal moment occurred when the Federal Reserve shifted its stance on interest rates. As a result of the central bank's decision to ratchet up rates, biotech stocks experienced a sharp decline almost across the board, plunging the industry into a bear market.

Image source: Getty Images.

Continue reading

Source Fool.com