I’m starting up my videos on JubakAM.com again–this time using YouTube as a platform. My eighty-seventh YouTube video “3 Sectors to Avoid After the Fed Tightens” went up today.
I’m sure you’ve noticed. As bad as the losses in the general market have been on some recent days–such as yesterday–the punishment meted out to biotech stocks has been worse.Part of that has been the “usual” pattern in a market that is busy selling “risk.” Biotech stocks always get hit hard in such a period. But there’s more, much more going on that’s specific to the sector. And in fact specific to Merck (MRK) and Incyte (INCY), a biotech that’s in my Jubak Picks Portfolio and where I also hold options in my Volatility Portfolio. The key event here for the sector is the April 5 news that Merck and Incyte were pulling the plug on a clinical trial
In my daily trawling through the market I come upon lots of tidbits of knowledge that I think are important to investors but that don’t justify a full post. I’ve decided to start compiling these notes here each day in a kind of running mini blog that I’m calling Notes You Need. A typical item resembles this note from today: “12:40 p.m.: Biotech stocks up strongly with iShares NASDAQ Biotechnology ETF (IBB) ahead 3% on news of two big acquisitions: Celegene (CELG) buying Juno (JUNO) for 90% premium to pre-news price and Sanofi (SNY) buying Bioverativ (BOVV) at 64% premium.”
“I’m going to bring down drug prices. I don’t like what’s happened with drug prices,” President-elect Donald Trump said in an interview with Time posted on the magazine’s website this morning. So much, the stock market has concluded today, for the idea that a President Trump would be friendlier than a President Clinton to the drug industry.
The hedges have been coming off today as the financial markets react to FBI director James Comey’s second letter on the FBI’s perusal of a trove of email’s on a laptop that was shared by Clinton aide Huma Abedin with her estranged husband (and former Dencratic Congressman from New York) Anthony Weiner. It’s not so much that Wall Street loves Hilary Clinton as that the markets fear the unpredictability of Donald Trump
