Archive | November, 2013

Biotech Richly Priced With One Exception


At 10.3x book value and 50.3x cash flow on average, the biotech industry is among the most expensive in the MSCI World index. There have been some big winners in the biotech industry the last 4 years.  Every stock in the industry has outperformed the MSCI World index over this period.

Real Estate Stocks Far And Away The Weakest Among North American Industries


Even though home prices continue to rise (see yesterday’s post), existing home sales and mortgage applications for purchases have softened. Mirroring this weakness in existing home sales and mortgage apps, real estate stocks remain the weakest among North American stocks and by a pretty far margin. 25% of real estate stocks are making new 200-day lows.

France v. Germany: Consumer Confidence


Consumers in France see a diminished capacity to save, a deteriorating general economic situation, and rising unemployment over the next year– all of which adds up to a decline in confidence: Germans, on the other hand, were surprisingly more confident about the consumer climate in November, as evidenced by the unexpected increase in the Gfk