2024 will actually be a year for biotech
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10Mes
@Cashflow_Investor May I ask why, it's a share that I don't have on my radar at the moment
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•@Haraldbali Biotech companies, especially those included in indices such as the XBI (SPDR S&P Biotech ETF), often rely on external financing to fund their research and development work. When interest rates are low, borrowing costs fall, making it cheaper for these companies to raise the capital they need. This can lead to increased investment in innovative projects and potentially higher valuations (rising share price) for these biotech companies.
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10Mes
@Cashflow_Investor I have therefore increased my position in BioNTech, but the money from the sale here is simply thrown into the world.
Furthermore, I don't think we will see any major interest rate cuts in 2024. So I don't think 2024 will be a good year for biotech, rather the opposite, maybe 2025.
Furthermore, I don't think we will see any major interest rate cuts in 2024. So I don't think 2024 will be a good year for biotech, rather the opposite, maybe 2025.
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@CMustermann
1. the market expects 5-7 rate cuts this year alone
2. the yield on 10-year government bonds has fallen from 4.92% to 3.87%, which helps track the cost of capital and the health of the financial markets
Of course you have to know that the market is already trading into the future. So stock and bond prices reflect what investors (Mr. Market) expect the economy to do in the future
1. the market expects 5-7 rate cuts this year alone
2. the yield on 10-year government bonds has fallen from 4.92% to 3.87%, which helps track the cost of capital and the health of the financial markets
Of course you have to know that the market is already trading into the future. So stock and bond prices reflect what investors (Mr. Market) expect the economy to do in the future
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@Cashflow_Investor Didn't they already say that in 2023 and 2022?
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•@Jambalayaflo what then ?
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@Cashflow_Investor Year xy will be the year for biotech. I've read that more and more often since corona. I can't wait to see how the year develops.
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@Jambalayaflo As far as I know, the US has started raising interest rates since March 2022.
P.s I'm talking about interest rate cuts and not about corona
P.s I'm talking about interest rate cuts and not about corona
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10Mes
@Cashflow_Investor I also saw this in the FED Watch Tool and consider the rate cuts expected there to be illusory. We will never see these cuts.
For 4 reasons, among others:
- This is an election year and in my opinion it will be Trump. The impact on the market is unpredictable for this guy.
- According to the current trend, the situation in Ukraine will deteriorate sharply towards the middle of the year if the Americans do not extend their support.
- In my opinion, the labour market data from the US are not trustworthy as they are based on a subjective survey and are heavily criticized.
- the FED was very clear in its language that nothing would be lowered until things improve significantly. Due to the huge amount of money in circulation, I don't think this is "good enough" at the moment.
For 4 reasons, among others:
- This is an election year and in my opinion it will be Trump. The impact on the market is unpredictable for this guy.
- According to the current trend, the situation in Ukraine will deteriorate sharply towards the middle of the year if the Americans do not extend their support.
- In my opinion, the labour market data from the US are not trustworthy as they are based on a subjective survey and are heavily criticized.
- the FED was very clear in its language that nothing would be lowered until things improve significantly. Due to the huge amount of money in circulation, I don't think this is "good enough" at the moment.
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10Mes
@CMustermann Whether Trump will win is questionable, but if he does, he will be the first to do everything he can to make the stock markets rise.
When I think back to his last term in office, he measured his success directly against Wall Street and constantly tangled with the Fed. Not a day went by without Twitts on the stock market.
When I think back to his last term in office, he measured his success directly against Wall Street and constantly tangled with the Fed. Not a day went by without Twitts on the stock market.
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