In the old days GM was short for General Motors. After the government bailed them out, GM changed to Government Motors. The latest definition of GM is Government Markets. On Wednesday the Federal Reserve Board came out and said they were concerned about the recession in which so many foreign countries found themselves. The implication was that more money printing could be required. Thus the markets responded by going up. After Tuesday I was concerned about being fully invested but by week end, I was happy I was fully invested.
Over the last coumple of years over 120 biotechnology firms have gone public and sold stock to investors. Most of these new offerings had no sales but the public liked the concepts. Investors have purchased the stocks and created companies with market valuation of billions with no sales. This is exactly what happened in the .com bubble of the late 1990s. We are obviously in a biotechnology bubble and someday it will burst.
It turns out I did not leave town this weekend as soon as I thought I would so had time to produce this report.
IBD TBP’s Current Outlook is “Uptrend Confirmed” – time to invest.
My current investments:
SPharmaceuticals has a price of 21.79, a sell price 20.76, a rank of 09, and is a Hold.
SBiotechnology has a price of 230.71, a sell price 219.17, a rank of 01, and is a Hold.
SHealthCare has a price of 223.18 a sell price 212.02, a rank of 05, and is a Hold.
STransportation has a price of 92.81, a sell price 91.54, a rank of 08, and is a Hold.
SAirTransportation has a price of 72.93, a sell price 70.64, a rank of 07, and is a Hold.
My portfolio changes this weekend:
IRA #1 – None
IRA #2 – None
My portfolio market exposure after this weekend’s changes:
IRA #1 – 100% invested
IRA #2 – 100% invested