Pharmaceutical stocks have done well this year so far and some experts believe the up-trend will hold up for a while. http://www.fool.com/investing/gener...plain-sight-the-5-best-stocks-in-pharmac.aspx That is probably the reason why investors should be cautious. Could be pharmaceutical stocks have hit their peak. What do you guys think? Are the forecasts convincing?
All I can say is that JNJ is looking pretty damn attractive at these prices. I'll probably put in a buy order for next week.
I do have a fair amount of money at this time in puts and calls and small long positions on a pretty large number of mostly smaller biotechs.
Small and midsize biotechs are hot right now, and the trend isn't going away. I don't see anything hurting this market. There's also a small, but very real chance that a pharmaceutical or biotech you invest in gets a major drug to market - you'll be seeing a huge return on your investment. Look at AMGN. If you had invested in 2011 at ~$50, you'd be sitting at ~$150 right now four years later.
The biotech trend is definitely there. I'm not familiar enough with them and I generally don't enjoy investing in companies that are super volatile or companies who are not making a steady profit. And as far as I know that is the deal with a lot of these companies. Diversification is the key again. JR has a pretty solid strategy in my opinion, smaller positions and more companies.
