Zeev's Turnips Patch-No Politics (ZEEV)

[DlphcOracl]

Babylon: My two best candidates for shorts are:

.....the biotech index (BTK) and the German xetra dax index.

The biotech index is up an astonishing 65% since early March and nearly all of these companies are not profitable. The sector rocketed following Genentech's promising trial of an anti-colon cancer drug, a gross overreaction. Genentech will not be able to market that drug for several years and the other companies have little in their immediate pipeline to justify current valuations. It's the old "promise and hype" cycle that is part of the biotech sector.

The xetra dax is up nearly 45% since early March and the German economy is moribund, almost certain to slip into its second recession in two years, with a very high unemployment rate and recalcitrant labor unions that will not permit German industries to undertake the cost-cutting measures their industries desperately need to make them globally competitive. Germany is where Sweden was ten years ago --- addicted to a socialist "cradle-to-grave" welfare system for their workers that they cannot afford.

The biotech index can be shorted by using the ETF for it (IBB). Similarly, the xetra dax can be shorted using its ETF (EWG). They both look mighty juicy to me!!