Biotech Values

[poorgradstudent]

OT: Market

When you look at the gains in some small-cap names (including several biotech stocks) since the US election, it seems that investors are expecting more than a token reduction in the US corporate-tax rate.

Agree. The whole market run seems to be one of anticipation on the part of some investors.

I don't think smart businesses make any meaningful financial decisions on the expectation that a new President will hopefully come through on X and Y campaign pledges. Plus, no meaningful change in demand took place in the last 2 months.

I'm leery of this run. I read many bio investors getting excited about the money they're making in small cap bios, and everyone is looking like a genius lately. And in an informal manner, I've been getting more random twitter DMs lately with people asking about different small cap bios and asking, as an aside, if I'm also in Bio X which just went on a run for them. Sounds like retail investors in biotech are feeling confident and expanding their portfolios. I think all this is a prelude to a correction for our sector.