Hi Wolf,
Still haven't given up the ghost after the recent flush, this has been the both hands on the wheel ride that you're explaining. Asbestos underwear well in order.
An interesting note, biotechs always become cash ladened in bear markets because of there immunity of shrinking earnings during such times.
We are in a bear market, one I believe will last for quite sometime. I take this stance because of two simplistic catalysts.
One being oil prices.
In 1980, you could buy a share of all the stocks in the Dow Jones Indusrial Average with the money you would get from selling 25 barrels of oil.
Today, even after oil's spike and the Dow's plunge , it would take 325 barrel's to do the same.
Things are still very pricey.
Secondly, we are at still, near all time margin debt incurement with these markets which could ultimately induce a nasty sell-off of mutual fund redemptions.
Big ticket items of the year past have to be paid for and these dwindling markets are putting every investor on edge.
Still, people will need our product to help quell those aches and pains, the very reason of my steadfastness of holding on to my shares.
Keep up the good work Wolf, your very informative and musing at times.
Regards Tom G. |
