Tech Wreck Shows Need for Diversified Portfolio-Biotechs Hold

Nasdaq Plunges 1.8%

Energy, Financials and Industrials Gain in Sector Shift

The sector shift hit hard last Friday with money moving out of the big 2017 winners and moving into lagging energy, financial and industrial shares. High flying technology and “FAANG” shares took a break from rocketing momentum: Facebook (FB) down 3.3%, Apple (AAPL) down 3.88%, Amazon (AMZN) down 3.2%, Netflix (NFLX) down 4.73%, Alphabet (GOOGL) down 3.4% and Tesla (TSLA) down 3.4 % after hitting 62 week highs. Semiconductors up over 20% YTD sold off as well with the SMH down 3.87% and NVDIA (NVDA) down 6.47%.

On the winning side of Friday’s trades were the lagging energy sector XLE up 2.4%, financials XLF up 1.89% BAC up 3%,and healthcare showing stability XLV up 0.68% and 12.45% YTD.

Many large cap drug stocks did well: BMY up 1.7%, JNJ up 0.75%, MRK up 1.88% and PFE up 3.21%. Biotechs coming off a nice run through the ASCO Conference were slightly down IBB off 0.22% and the more volatile XBI down 0.38% although many small cap biotechs ran up.

Rayno Biopharma winners include : ABBV up 1.32%, GILD up 0.9%, and BLUE up 0.81%

So a big part of 2017 investing strategy will be picking the right sector. Healthcare appears to offer modest returns with a dividend play.