I understand that it is still the summer but this is an absolutely no news start to the week. We remain in a choppy market until proven otherwise and this lack of news makes it difficult to discern anything under the surface. Ideally, you would want to see how stocks react to news but we […]
August 16th Biotech Update
The sector was pretty weak yesterday but remained in its range. While there is nothing to dissuade me from the summer chop, there are some warning signs. First, we are close to breaking through the support on both the XBI and IBB. Second, the early morning bounce was quickly sold. Obviously it remains early but […]
August 15th Biotech Update
A pretty weak open for the sector but again this is nothing more than low volume chop as I see it. Unless it breaks below 113 on the IBB and then retests that as resistance or above 120 and then retests that as support, I will continue to argue that the sector is directionless. Of […]
August 4 Biotech Update
I am back from my last trip of the summer and to be honest it is going to take me the weekend to catch up on all the news. That being said there are a couple of points I can make that are essentially the frame I will use to look at the recent news. […]
Tax Inversions: Regulation Chasing Corporate Tax Loopholes Part 6
Proposed solution and conclusion Finally, I’d like to draw some conclusions and offer a different solution. First of all, it is clear that the corporate tax structure is way too complicated. Its provisions seem to be more focused on assuring tax revenue instead of focusing on economic efficiency and keeping America competitive in the international […]
Tax Inversions: Regulation Chasing Corporate Tax Loopholes Part 5
Proposed Policy Actions to curtail inversions All policy actions taken so far have been attempts at adjusting the tax code to greatly discourage inversion, but falls short of eliminating the incentive to invert. The Congressional Budget Office points to three policy options that are being considered for passage: Move significantly toward a purely worldwide system […]
Tax Inversions: Regulation Chasing Corporate Tax Loopholes Part 4
The incentives to invert Now that we have determined that inversions are not in America’s best interest and that multinational corporations are now actively seeking to invert, we must critically consider how to stop inversions. However, it is prudent to first understand the full scope of the incentives to invert. Results have shown that inversion […]
Tax Inversions: Regulation Chasing Corporate Tax Loopholes Part 3
A brief history of corporate tax inversion In 1982, McDermott Inc., an industrial company making nuclear reactor parts for the US Navy as well as deepsea oil and gas production facilities, decided to expatriate to Panama where one of their subsidiaries were located and renamed themselves McDermott International (Hines, 1991). This was done by having […]
Tax Inversions: Regulation Chasing Corporate Tax Loopholes Part 2
Corporate Tax impact on the Economy It is well documented through economic circles that taxes skew relative prices by shifting the supply curve to the left in a standard supply-demand model to create a deadweight loss. The deadweight loss is the area of the subsequent triangle with the endpoints at the pre-tax equilibrium, the supply […]
Tax Inversions: Regulation Chasing Corporate Tax Loopholes Part 1
The following was a research project completed for my Economics of Regulation class about tax inversions, the implications, and proposed solutions. Since this is a large paper, it will be split into 6 parts and published daily. Abstract – Corporate inversions have grown in popularity in recent years, and has drawn quite a bit of […]
Catatonic Economics – No one is talking about the greatest risk to America
Financial markets talk about a lot of headwinds to the economy. China devaluation, negative S&P earnings, presidential race, central bank actions, European banking problems, Japan, oil, etc. One that should be frontline news… more than the Trump tape, more than Kim Kardashian being (fake?) mugged, more than a backup QB kneeling for the national anthem. […]
July 28 Biotech Update
It is a mixed bag today in terms of stock reactions but the actual numbers continue to be good. I am not exactly sure why some stocks are reacting better than others but I will take a stab at it. In any case, it is hard to argue that the fundamentals of the sector do […]
Catatonic Economics
***”Economists have forecast 9 out of the last 5 recessions. *** One contribution I make to the CRG team is my background in economics. I have a pervasive interest in macroeconomics and am close to getting my Masters in Economics. I have worked for an economic indicator at the US Census Bureau, and work as […]
Biotech Inflection Point – Watch List-2
Following my last technical analysis “Biotech Inflection Point – Watch List-1” I will keep adding names to our watch list with some beaten down tickers, we can find many deep value biotech stocks in the recent pullback, some are trading at or very close to their cash level, at this point their assets are […]
Biotech Inflection Point – Watch List-1
Following my last technical analysis “XBI – A Look At The Near and Long Term In The Biotech Sector” I will start adding names to our watch list with some beaten down tickers, we can find many deep value biotech stocks in the recent pullback, some are trading at or very close to their cash […]
XBI – A Look At The Near and Long Term In The Biotech Sector
SPDR S&P Biotech ETF (XBI)–NYSE We will maintain our focus on the XBI as the biotech barometer, many are waiting for the XBI to outperform the IBB again and lead the way to a real recovery, to give us the sign that the technical correction is done and we are back to a […]
The XBI In The Take Or Break Zone!
SPDR S&P Biotech ETF (XBI)–NYSE We will maintain our focus on the XBI as the biotech barometer. After the double bottom around 59 points a month ago, the XBI start printing a higher high and a higher low, the first step in the new uptrend that we are looking for. Looking again at […]
A Quick look – XBI In The Decision Zone
SPDR S&P Biotech ETF (XBI) We will maintain our focus on the XBI as the biotech barometer. Noticing lately the fact XBI is outperforming the IBB & the broader market SPY or SPX, might give us the sense that investors are again, willing to take more risk with the small-mid cap biotech companies after the […]
August 21 Biotech Update
So it is obviously getting rough and we got our first peeks of panic yesterday. Most everyone seems to think that the worst is yet to come and I would not be surprised to see even more downside but obviously the contrarian in me wants to move to the other side of the boat when […]
