Top strategist Byron Wien thinks the economy will fare much better in the second half of the year, and says he is high on biotech stocks.
Wien tells Wall Street Week that he thinks the Federal Reserve will raise interest rates in September, but that the minor increase won’t do anything to derail the economy. In fact, he says the next recession is years away. While some have been concerned about a possible bubble in the biotech industry, Wien thinks there are plenty of very attractive companies in an industry that he says will continue to create great advances for the world. He says he has found some great winners over the years in the biotech industry – some of which have increased 100- or even 1,000-fold — but not by trying to make a quick buck. “The core of my investment philosophy is understand what you own, pick your stocks carefully, and hold them for a very long time. … You don’t make 1,000 times your money by trading,” he said. Wien also talks about the energy sector, saying he thinks oil prices are headed back up into the $70 range, and he discusses the importance of technical analysis.