Biotech Values

[jbog]

Dow 11k..............

Let’s think about it. After we get done popping the champagne and blowing our horns in celebration of the Dow hitting 11K let’s remember the 1st time it settled above 11k.

It first happened back in May 1999. If we can’t remember that time maybe it’ll be easier to remember that in 1999 Copper was 40 cents a lb, Oil was $18 a barrel, the Looney was worth 67 cents and Nickel was $1 a pound. Today, Copper is $3.60, Oil in the $80’s, the Looney in 98 cents and Nickel is over $10.

Even after the largest downdraft in our history our average house price is $179k today compared to $119k in 1999.

There is not one asset class that I can think of that has done worse than the Equity Markets over this timeframe.

Here’s something that defies logic. In 1999 Pfizer had a market cap of $189 Billion. Over the next 11 years Pfizer spent $210 Billion dollars to acquire Warner Lambert, Pharmacia and finally Wythe yet as of today Pfizer’s market cap is $140 Billion.