Very interesting thanks. I follow points 1 and 2. But on point 3, I thought according to Howell and what you’ve said previously we were late cycle and so to stay clear of tech stocks (and wait for QE / insiders)?
The problem with late cycle and central banking is that when the injections come - and liquidity expands, the High Beta gets the bump due to the leverage and passive flows.
The mention of GILD here is interesting given how its been flying under the radr compared to mega cap tech. Biotech has that capital efficiency profile you talked about, especially with their HIV franchise generating steady cashflows. The pharma names with strong pipelines and actual profitability seem like a much safer bet than chasing overhyped growth stocks right now. What's your take on the biosimilar competiton risk though?
Very interesting thanks. I follow points 1 and 2. But on point 3, I thought according to Howell and what you’ve said previously we were late cycle and so to stay clear of tech stocks (and wait for QE / insiders)?
The problem with late cycle and central banking is that when the injections come - and liquidity expands, the High Beta gets the bump due to the leverage and passive flows.
The mention of GILD here is interesting given how its been flying under the radr compared to mega cap tech. Biotech has that capital efficiency profile you talked about, especially with their HIV franchise generating steady cashflows. The pharma names with strong pipelines and actual profitability seem like a much safer bet than chasing overhyped growth stocks right now. What's your take on the biosimilar competiton risk though?