|Thanks, Jim! Oh, my..... then you're not going to enjoy today's ISIS news. Up 10% last I saw.|
The sector, 2015?
>> That oil money has to go someplace <<
Strong dollar and a sexy sector.
Over valuation has really only stopped the sector once, about a year after it dealt a near-lethal blow to tech. Confusion (and Franklin et al.'s heavy finger) regarding valuation stopped it another time, but I'm not particularly concerned about "bubble"... feel that the sector's strong-science companies are highly levered with good balance sheets and competitive advantages to pharma.
Feuerstein, not too long ago? He was rejoicing as the sector came back violently, twittering about bubble. Sobered sector freaks were silent, and he and his won the next few days. He's respected for good reason, and those few days showed how fragile sector sentiment can be. Many of the newbies have never lost shirt, and it showed.... we had some violent selling.
And then the sector just took off again. Hiccup.
What does stop the sector? Rapidly increasing interest rates. What are the chances that interest rates will increase rapidly in 2015? Pundits say snowball in hell.
This year is special, however, risk-wise. We have price erosion and it's all AbbVie's fault.
When I look around, I'd say that all that oil money has to go someplace!