Biotech Values

[poorgradstudent]

OT: Demand

The New Orders Index registered 65.1 percent, an increase of 4.7 percentage points from the January reading of 60.4 percent.
The Production Index registered 62.9 percent, 1.5 percentage points higher than the January reading of 61.4 percent.

Well, I thought we were talking about the "Trump Rally" that began the day after the election. I don't think consumer demand increased overnight simply because Trump was elected.

Trump , if nothing else , has been successful in minimizing the growth of regulation ( remember the decree ..for every new regulation 2 old ones need to be removed )

Perhaps? But hard to say this has any bearing on the economic indicators as of February. He got into office in late January. Are you saying that he made large changes to regulation that immediately registered as of February?

My point is not to make this political. I just don't see that an overnight fundamental change in the economy occurred on election day to cause the SPY to increase 10%+ until now. There seems to be a common pre-election theme in the US where election of a democratic president is bad, republican president is good. I see this rally as part of that quirky phenomenon.

All signs are they will now focus on some degree of tax reform including repatriation of funds held over seas.....all of which is good for Biotech.

By and large, I don't believe that makes a difference for our sector. I'm not convinced that the firms who hold money overseas are limiting their domestic R&D spend due to financial limitations. And those that could use the extra dollars to run trials likely don't have profits squirreled away overseas. Your mileage on this topic may vary.


As for PLSE, I don't follow it.