Macro Reflation trade: Deflation risk persists
An April 14 story on Bloomberg said that the ECB may have to lower interest rates below 1.25% next month to counter the worse recession in six decades. And the FED continued its quantitative easing Monday purchasing $7.37B in Treasuries and $5.15 B in Agency debt. Treasuries ended strong with...
Q1 Biotechnology Update
The March rally improved the performance of the Life Science sector in Q1 but trailed gains in the technology sector. The S&P Healthcare Index lost 8.5% in Q1 compared to the S&P 500 loss of 11.7%. The S&P Technology Sector gained about 2% in 2009. The Rayno Life Science Portfolio was down only...
Reflation trade: print print print to fight deflation
Another $1.1 Trillion to be thrown out by the FED with $300M to buy treasury securities and more purchases of mortgage backed securities and agency debt. Big rally in Treasury bonds.FED is market maker of last resort. All markets rally.S&P up 2.4%. The dollar is down 2-3% against Yen and Euro....
Big Rally in Biopharm coming off technical bottoms
Biotech and large cap pharmaceutical stocks rallied today overcoming fears of the Obama administration healthcare initiatives that created a bearish pall on the industry. The mood is reminiscent of Hilary care in the early nineties (see my article in Genetic Engineering News 1/1/09 on the...
Blockbuster mergers fail to lift Biotech stocks
Roche boosted its price to $95 to buy Genentech as expected and Merck will buy Schering Plough for a cash and stock deal valued at $41B including $10.50 in cash. M&A was one of the themes expected to support biotech stocks in 2009 and smaller deals have been executed or are in the works. The...