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Strategies & Market Trends : MDA - Market Direction Analysis

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To: marginmike who wrote (48899)	5/2/2000 9:54:00 AM
From: Casaubon	Read Replies (1) of 99985

The only way interest rates effect biotechs is the guaranteed rate of return one gets buying bonds instead of stock. No matter how high the interest rate goes, if you need a drug to alleviate a medical condition, you will buy it. Interest rates don't effect disease statistics. One could argue that higher interest rates will cause a recession which would lead to unemployment, and that would result in more people who do not have health insurance, and therefore could not afford to buy the necessary drugs. However, I find that scenario to be ridiculous. The only way promising biotech companies will fall apart is if they have failures in the clinic or somebody beats them to the punch. All just my opinion, of course.

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