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My understanding is that Biotech has had a hot/cold dynamic as an investment over the past 30 years. IPO have had a lot to do with their investment success. Technology and innovation has made this all possible. Here's a chart of the biotech IPOs over the last 30 years. Many of these spikes equates to investment outperformance.
Natural gas over the last 30 years has followed a very different performance path, but technology and innovation again has lead this sector to new discoveries and efficiencies. Long term plentiful and inexpensive natural gas will boost manufacturing, fertlizer production, lower electrical generation costs, reduce carbon emission / btu as well as provide input components for a whole spectrum of chemical products.
Pairing these two sectors plays (using UNG or FBIOX) with Utility funds (GASFX, BULIX), chemical / Industrial manufacturing funds (VIS, FSCHX), Health Care funds (PRMSX, VGHCX, or others) seems like a good way to also incorporate these outperforming sectors.
Reply to @bee: Nice graphics ! As you know I'm very bullish on biotech and healthcare funds in general. Regarding natural gas as I stated earlier the spike in natural gas has much to do with one of the worst winter's in U.S. history. If you get in at the beginning of 2014 you could have made some nice money short-term, however; the U.S. is swimming in natural gas and I don't consider it a good long-term play. Regards, Ted
Reply to @Ted: You appear to be right on-target with health care sector (IMHO). What is your current view regarding the chemicals sector? Thanks for your input and for all the time and effort you expend in bringing us timely information to read and consider on MFO. MS
Comments
reference:
insights-from-30-years-of-biotech-ipos
Natural gas over the last 30 years has followed a very different performance path, but technology and innovation again has lead this sector to new discoveries and efficiencies. Long term plentiful and inexpensive natural gas will boost manufacturing, fertlizer production, lower electrical generation costs, reduce carbon emission / btu as well as provide input components for a whole spectrum of chemical products.
Pairing these two sectors plays (using UNG or FBIOX) with Utility funds (GASFX, BULIX), chemical / Industrial manufacturing funds (VIS, FSCHX), Health Care funds (PRMSX, VGHCX, or others) seems like a good way to also incorporate these outperforming sectors.
Regards,
Ted
MS
Regards,
Ted
1. Healthcare
2. Technology
3. Industrials
4. Utilities (For income)
5. Materials (Not at the present time)
Best,
MS