Biotech – Analysis and Outlook
AVC have focused on the two leading Biotech ETFs over the last few years, but it has been a tough year. We follow XBI and IBB. XBI is SPDR S&P Biotech, and IBB is iShares Biotechnology.
January Market Expectations
Mid-Term Januarys usually provide less than optimal market conditions for investors. They also are less prescriptive of the rest of the year’s returns.
Flattened Alibaba
Analysts have a neutral view of Alibaba (BABA) going into 2022. They see revenue across all business lines slowing from pandemic levels. But growth rates are still strong, and new business lines are just in their infancy. The negativity among analysts is palatable. Longer term, they maybe overdone.
Now A Nibble
With ‘stay at home’ COVID pet purchases fueling a frenzy in animal health products, this pet care delivery service boomed. On the ‘return to normal’ trade, the company has fallen out of favor, undeservedly so as growth is still robust and margins expand.
More Beat Up Blue Chips
Recently we highlighted several best-of-breed large capitalization companies that have materially under performed this year. Another three companies are examined below. These are not speculative names. They are not richly valued technology or consumer discretionary stocks either. They have wide defensive moats and should be beneficiary of strong cyclical and secular uptrend. But they under performed enough during 2021 with Read more ➝
Beaten Down Blue Chips
Several high quality companies now sell for discounted prices after the strong sell since Thanksgiving. The main US indexes maintain relatively high sales and earnings multiples historically. This masks the damage done to most small stocks and even some blue chip names that most astute investors continually monitor for buying opportunities. We highlight three stocks Read more ➝
SEC SPAC Scrutiny
Big red flags waving around a recent SPAC company that could set a precedent for future companies going public. Expect more than just fines.
Investment Strategy Update
November started out very strong, but around the middle of the month small cap stocks began to struggle. Large cap stocks (especially the favored technology and consumer discretionary stocks) went on to make all time highs later in the month. However, during the generally bullish period of the year – around Thanksgiving (Thursday, November 25th) -the large cap leaders also started to sell off.
November Weakens
Sell signals have arisen on the major US markets. They need to be resolved before a further advance in 2021 can take place.
Broken Down Breaker
Bulls have been wrong on this beat up stock many times before. Things are changing for the better and now the bulls might be right. They put a great deal of money on a bet after earnings came out.