It has been another good four weeks not just for the market as a whole, but for both of the newsletter's portfolios as well. I like the abrdn Life Sciences Investors (HQL) fund here, writes Nate Pile, editor of Nate’s Notes.
What is especially encouraging about the numbers is that they are being driven by not just solid performance from the big-name tech stocks that have been leading the market higher for quite some time now, but by sizable moves in a number of smaller stocks as well.
While it remains to be seen whether the strong outperformance of smaller cap stocks that has been taking place over the past couple of days will prove to merely be a short-term blip or the start of something more meaningful, it is hard to not be excited about the turn of events. We will have to wait and see what the next few days and weeks bring.
abrdn Life Sciences Investors (HQL)
In the meantime, everything we are seeing on the economic front suggests that a “soft landing” is still the most likely (but certainly not guaranteed!) outcome following the Fed's unprecedented interest rate hikes over the past couple of years.
As for HQL, you can see it has been on a tear after bouncing sharply off the near-term low it hit back in late May. It looks like there might be some nice tailwinds developing in the overall market that could help it move even higher in the weeks and months ahead.
As discussed often, you can probably get more bang for your buck by owning individual biotech stocks. But for those of you who are more risk-averse or like the idea of owning a bunch of up-and-coming biotech stocks with a single purchase, I believe this closed-end fund is a great way to go.
Recommended Action: Buy HQL.
