Good assessment and I like your low numbers and believe we'll see under 80s soon. But I think the situation will be less tricky. I don't put much long-term weight on the words of the "most important person in finance" when painting a broad brush swipe at an entire market sector.
Investor memories are often short-lived and most have well-researched why their money is in a particular stock, not spread out over an entire sector. Combine that with a great PR of a significant medical advance or FDA approval for a company and those investors won't remember Yellen's words.
Much like when people point to poor poll numbers of Congress, but incumbents still manage to get re-elected. Nobody goes into a voting booth to cast a ballot for or against some fellow named "Congress". Most vote for their own local guy, thinking he's ok. It's all the other rascals that need to be thrown out.
Bottom line, as a long I don't allow a Fed Chairman's words to affect the make-up of my portfolio. I expect PVCT will likely slide a little further with or without this high-profile smackdown and I will be buying in the sub-80s. I'm also betting PVCT will survive longer than a Keynesian Fed Chair by 2017.
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