Dow 14,000 and General Market Euphoria Lifts All Stocks: Has the Bond Bubble Burst?

Life Science stocks ran with the general market today and with all the green screens you’d think it was St. Paddy’s Day. The concern now is that everybody is bullish and think equities is the place to be invested. European crises are in check, the debt ceiling is postponed, jobs are just ok which means the FED money pump will continue. The latest MO talk is that investors need tomove out of bonds and into stocks because of low bond yields and an improving economy. There are even articles that say that the U.S. Debt crisis is manageable over the short run and can be stabilized. Any hint of an approach to entitlement cuts in upcoming sequestration talks should create more more optimism. In the meantime as the stock market roars ahead, euphoria has infused market participants and taken the edge off economic concerns. Even Gov. Brown says the California budget is balanced.

Rayno Life Science stocks had an excellent week and the bellwether ETF IBB is trying to close above 53 week October highs of $148.50. New all time highs are : Abaxis (ABAX $44), Albany Molecular (AMRI $6.25),  Astex (ASTX $3.55), Biogen Idec (BIIB $157), Gilead (GILD 40.50), Quidel (QDEL $23.10), Seattle Genetics (SGEN $30) and ThermoFisher (TMO $75).

Even our laggards are coming back: Alere (ALR $21.28),  Response Genetics (RGDX $1.42), and Qiagen (QGEN $21.33).

Macro benchmarks: crude $97.61, gold $1670, Euro/$ 1.366, 10 yr Tsy yield 2.013

But doomsayers and bears are out there with caveats on the current euphoria such as inflation, a dysfunctional congress or currency chaos.

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