Byron Wien's Update On Correct Predictions: Watch Biotech, Junk Bonds And Oil

Byron Wien, vice chairman of Blackstone Group LP (NYSE: BX)'s Blackstone Advisory Partners, wrote in his list of "10 Surprises" for 2015 that "high yield becomes the best performer of the various asset classes as the U.S. economy continues to grow with no recession in sight."

Now that his prediction has come true, Wien shared his outlook for the junk bond market going forward on the latest edition of Wall Street Week. While on the show, Wien also shared his outlook for crude oil prices.

Be Selective In Junk Bonds

"I think it's come a long way back, but I still think there are opportunities in the junk bond market," Wien said. "Most of it is in technology and energy. You have got to be selective. One of my biggest areas right now is biotechnology; everybody tells me it's a bubble, but if you really look at it, biotechnology companies are changing the world.

"I don't know if they will cure cancer, but they will certainly help in the treatment of cancer."

Related Link: Byron Wien On What He Got Wrong: Annual "10 Surprises" Predictions Update

He continued, "They are going to definitely improve overall circumstances for heart disease, juvenile diabetes, multiple sclerosis – god knows how many. I mean, people are going to live a long time. There are social and financial implications to that. But, I think we are making major progress in medical technology, and I think there are a number of companies that are going to do well. I have made 100, in some cases 1,000, times my money from biotechnology stocks."

Oil

Wien was asked about his outlook on oil. He replied, "I think oil is going up. Maybe not a lot, maybe only to $70. But, when it was $43, I thought it was going to $70 and that was in the '10 Surprises.'

"I think the developing world is going to be using more of it. I think we are going to be producing more of it. But, I think the consumption is going to outrun the lifting."

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