The COVID-19 pandemic has fueled the growth of biotechnology companies, driven by the growing prevalence of chronic diseases and rising expenditure on research and development. The increasing adoption of advanced technology, including artificial intelligence, is benefiting the biotech sector. And growth in the biotech sector is aided by the possibility of online and remote diagnosis and treatment of patients around the globe. According to a report by Precedence Research, the global biotechnology market is projected to reach $1.68 trillion by 2030, growing at a 8.7% CAGR.
Due to current macro headwinds, including the Fed's Hawkish tilt, surging inflation, rising U.S. Treasury yields, supply chain disruptions, and the Russia-Ukraine war, renowned institutional investor Cathie Wood's portfolio was hard hit. Wood's ARK Genomic Revolution ETF (ARKG), which holds a diverse portfolio of stocks in the biotech sector, took a thumping. However, we think the recent market tumult provides an excellent opportunity for long-term investors to add Cathie Wood stocks to their portfolios on a dip in their prices. Given the biotech industry's promising growth prospects, these stocks are well-positioned to weather the market fluctuations and grow handsomely in the near term.
