Biotech Values

[zipjet]

FWIW: I have some family money invested in an intermediate-duration muni-bond fund, which I would certainly have sold by now if not for the tax hit* on the unrealized gain.

Of course you can wait until they drop enough that there is no capital gain.

Muni's present two interesting issues. Will the tax exemption be eliminated? (My bet is it will as the Federal government gropes around for more revenue.) Will GO muni's be determined to be dischargeable in bankruptcy in the absence of the pledge of specific assets that generate the revenue? That one could go either way and likely goes to the SCOTUS a couple of times before we know the answer.

Given the low returns and higher risks that these issues raise, I would avoid them.

On the FED. I too think they are too optimistic. My bet is they will still be buying in 4Q2014.

PSEC is HY and undervalued IMO - with FV at 11.25.

ij