Replies to post #242467 on Biotech Values

[dewophile]

Well put. I was born in 1969 so I never invested during an inflationary setting. I was still in high school. But I do remember my student loans were at an amazingly low rate of 8.75%. Today fixed income can’t get you reasonable returns. This may help equities once it sinks in that cash in the bank is losing value

[bladerunner1717]

The macroeconomic environment is unlike anything investors have seen in at least 40 years

I don't think the macroenvironment is as bad as most people say. The economy, from a GDP perspective, is very strong. Unemployment is very low. Households have a lot of money to spend. Yes interest rates are going higher, but not higher than in the the eighties. I expect inflation to subside. And yes, recessions are born of higher interest rates and higher energy prices and we now have both. So that's a danger. And then, of course, there is the unpredictable madman/tyrant in Russia.

My main quibble--and it's a major one--with the article I posted is the comparison it makes to Amazon and 2002. The reason today is so different from 2002 is simple and straightforward: The maturing of the Internet. Information travels, globally, infinitely faster than in 2002. To me, this means that the turnaround in biotech will be sudden, swift and unexpected. And it won't take 10 years.

Thanks to Dewophile, Dew and jbog for chiming in.

Link to the article: https://www.sickeconomics.com/2022/03/24/biotech-stock-crash-questions-and-answers/#:~:text=The%20second%20reason%20why%20the,least%20getting%20close%20to%20profit.

Bladerunner

[DewDiligence]

Calculation of ENTA/RVNC enterprise values…

ENTA
#msg-168831164
#msg-168831159
#msg-168831206

RVNC
#msg-168853899
#msg-168853922
#msg-168854023

Note: EV changes whenever the share price changes!