Biotech Stocks Give Stock Market A Shot Of Life

Stocks Get a Kiss for Valentine’s Day, Cable Giants Embrace, and Wall Street Loves Janet Yellen (So Far)

The number of biotech drugs that fail in testing is plummeting, and the results are lucrative. Gilead’s hepatitis C drug, for instance, could easily result in the company seeing revenue jump from $11 billion to $20 billion in just three years, says Michael Yee, analyst at RBC Capital Markets. New faster regulatory procedures. Regulators are finding ways to give the most promising treatments a fast-track through the approval process, Yee says. This not only brings treatments to market faster, but eases investors’ nerves about drawn-out and risky clinical tests.

The gains came despite a disappointing reading on U.S. industrial output, with markets seemingly content to put much of the weakness down to bad weather. For equity investors, the run of soft figures recently has a silver lining in that it lessens the risk of the Federal Reserve speeding up its tapering plans, while keeping any hike in rates a very distant prospect. “The Fed expects to continue tapering, but will be patient when it comes to raising rates,” said Michael Gapen, an economist at Barclays. He noted the Bank of England had signaled similar patience with its policy, while the European Central Bank and the Bank of Japan were under pressure to ease yet further.

Asian Stocks Gain for Eighth Time in Nine Days After China Data

Take a break from that chocolate truffle binge and check out what pushed the stock market to its best/hottest week of 2014. 1. Stocks popped on Valentine’s Day Investors found their mojo on Valentine’s Day. U.S.

Asia stocks supported; falling dollar a burden for Nikkei

An office worker walks past the board of the Australian Securities Exchange building displaying its logo in central Sydney April 5, 2013. REUTERS/Daniel Munoz

30, followed by 13 percent in overseas equities, 10 percent in foreign bonds and 2.1 percent in short-term assets. In the past, politicians would say GPIF should get rid of all its stock holdings when shares fell, and when they rose and returns from bonds dropped, theyd say buy more stocks, leading them to sell at lows and buy at highs, Ito said. This is stupid. As an investment strategy, theres no way you can make a profit from this.

Stocks are far less risky than you think

One would think that in theory holding a diversified portfolio of cash, bonds and stocks creates the most amount of wealth 20 years from now, Blanchett said. That actually isnt the case. If you look back over history, holding stocks over the long haul has been the optimal thing to doand this effect of time diversification has actually been increasing, so the benefits to long-term investors have been growing over the last 110 years, not shrinking, so holding equities is actually a better and better thing to do. The research does not change the fact that there are still going to be good and bad times to buy stocks, it simply points out that investors benefit from being more aggressivein the broad mix of stocks/bonds/cash, it suggests going more in the direction of equities than you might otherwise have been leaningand from hanging on. Its worth noting that the research covered 20 countries and over 100 years in those markets, and that it does not suggest investors give up on diversificationinternationally, by company size and morenor does it suggest that investors ignore personal factors like time horizons that create short-term needs that make sticking around for the long-run impossible.

Stocks Get Back in Rally Mode

In Europe, the Stoxx Europe 600 fell 0.2%, its first loss in seven sessions. Italy’s FTSE MIB declined 0.2%, amid political grappling that led Prime Minister Enrico Letta to announce he would tender his resignation Friday, clearing the way for a new government to form. Asian markets were broadly lower. Japan’s Nikkei Stock Average shed 1.8% as a strengthening in the yen weighed on exporter stocks. China’s Shanghai Composite lost 0.5%, pulling back from a 2014 high on Wednesday.

Japan’s GPIF Should Own $600 Billion of Stocks, Ito Says

Markets in China and Hong Kong have yet to open. The MSCI Asia Pacific Index climbed back after losing 4.6 percent in January, its worst start since 2009, amid concern about Federal Reserve stimulus cuts, signs of a slowdown in China and volatility in developing markets. Global equity losses in 2014 peaked at $3 trillion on Feb. 4 and narrowed to about $144 billion as of Feb. 15, data compiled by Bloomberg show.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s