The biotech industry on the whole was on a massive winning streak in 2012, and it has started 2013 in a similar fashion. In fact, the iShares Nasdaq Biotechnology index is already up 13% since the start of this year, and there have been a few biotech stocks, such as Keryx Biopharmaceuticals, that have more than doubled.
However, for every biotech success there are a plethora of failures. Poor clinical trial data or drug recalls are some of the things that can cause stocks to plunge virtually overnight. For investors thinking about retirement, it's best to stay away from the smaller players in this speculative and complex industry. Instead, more diversified dividend stocks like Johnson & Johnson (NYSE: JNJ ) are typically much safer investments. Health care analyst Max Macaluso sheds light on this topic in the following video.
The best investing approach is to choose great companies and stick with them for the long term. The Motley Fool's free report "3 Stocks That Will Help You Retire Rich" names stocks that could help you build long-term wealth and retire well, along with some winning wealth-building strategies that every investor should be aware of. Click here now to keep reading.
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