10/21/10

Down Biotechs, Equates to Foreign Investments

Between Alkermes (ALKS), Exact Sciencees (EXAS), and Human Genome Sciences (HGSI), I'm actually down a few points than I would like to admit.  But these things are typical with the times and I have investments in other foreign markets that actually balance out some of the loses. Don't panic.  Work it out, Breath. It's Ok. 

My 401K is where I keep the "safe" investments of Emerging Markets, Precious Metals, ETFs, and Funds in Southeast Asia and Latin America.  Those have handily gained close to 30% this year alone.  But my stock account does have ups and downs.  I am not too worried about it though.  Just relax and watch them return double digit gains in a few weeks. The market just fluctuates in this recession. I know that's not what you want to hear but its the truth.  It creates further opportunities to Buy and Sell.  You have to have some iron will and believe that it will be for the longer term.


And it's only a loss when you sell.  You decide what is a loss.  But these stocks are volatile and do fluctuate wildly at times that makes your head spin a bit.  But you just have to realize, if it is a good investment, you should buy more when the price goes down.  That's my advice.  These all have upcoming clinical trials and data emerging in the next few quarters to actually have a hefty gain in the near months to come.

I actually think these will be my blockbuster picks of the year and ultimately will come out ahead.  I am very confident of that.  These may have some bumps in the road but I see value in each company and you should too.

But we also must look at What Percentage Are Your Investments In One Stock?  I like to break my shares into dollar ranges that are easy to do math with on returns.  1/10 is a good example.  But sometimes you want to break your shares down into 1/4 ,which comes out to 250 increments of a 1000.  I think beginners should stick to numbers they can do the math with.  Just my tip of the day.  Sometimes people don't actually know how to invest their money. 

Warren Buffett has said "We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful." And this quote is a timeless business quotation.  Some say buy into dividends and high yields.  Others stick to ETFs.  Some say Gold, others Precious Metals. 

But I say invest wisely.  Whatever you put you money.  Invest it wisely as Gold Does Go Down Someday.  Treasury Bonds yields dry up but sometimes you can find the right niches.  One bond broker Dan Fuss of Loomis Sayles Bonds say Corporate Bonds and Foreign Market Bonds are his bread and butter in this month's Money Magazine. 

I favor Biotech and BioPharma companies that I understand.  Dealing with the FDA is a hard business to drive but over time the method of the BioRunUp does work.  It is not for everyone.  I don't advise people who do not do their own Due Diligence to invest.  But if you at least understand the business you can figure it out, it's not all that complicated.   I have chosen some plays in Chinese Pharmaceuticals at the current moment and have been happy with my returns.  The Chinese are undervalued companies if you can find the right ones.

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