[djk100]

(01-15-2017 02:23 AM)Kissinger2014 Wrote:  

I'm building up a position in IBB - the biotech index ETF. It got hammered last week on Trump's comments on high drug prices. Many of the largest components in the ETF are really cheap in P/E basis and earn tons of cash. I like this ETF because I think the downside is limited - maybe to $250.

Even if the PE is cheap, don't you think they are cheap for a reason? Such as the market priced in the fact the valuation got way ahead of themselves