Biotech Bubble Chart - IBB - Monthly
Updated
Janet Yellen has warned about the bubble in Biotechnology, and rightly so since prices are up 10-fold from the lows in 2002.
Stories of biotech companies getting acquired and then having their drug prices multiplied overnight by unscrupulous owners is going to backlash into new Gov't regulations, at least a rational mind would think.
The game of developing drugs and ripping off customers of their lifesavings is akin to highway robbery. Time for the sheriff to come around and help. Well, the sheriff has spoken: Janet Yellen has warned about the bubble valuations of Biotech stocks and they have rallied 75% since her warning. I recall Greenspan warning about Real Estate in 2002-2003-2004 and then finally by 2007 it was falling apart as new regulations shut off lending. How do you shut down the biotechnology bubble?
I don't know, yet.
IBB 342.59 last 342.52 last 1:22PM EST Sep 21, 2015
Stories of biotech companies getting acquired and then having their drug prices multiplied overnight by unscrupulous owners is going to backlash into new Gov't regulations, at least a rational mind would think.
The game of developing drugs and ripping off customers of their lifesavings is akin to highway robbery. Time for the sheriff to come around and help. Well, the sheriff has spoken: Janet Yellen has warned about the bubble valuations of Biotech stocks and they have rallied 75% since her warning. I recall Greenspan warning about Real Estate in 2002-2003-2004 and then finally by 2007 it was falling apart as new regulations shut off lending. How do you shut down the biotechnology bubble?
I don't know, yet.
IBB 342.59 last 342.52 last 1:22PM EST Sep 21, 2015
Note
I think the rally is about at the end here - worth re-shorting again here after this massive bounce.Note
Massive "Yellen correction" carefully orchestrated. Yellen speaks again this week, perhaps she will mention this again.
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