Official Pharmacy Investing (Stocks/Funds) Thread!

[daysinnnc]

A very good investment opportunity in Amicus Pharma (NASDAQ:FOLD). A very nice detailed article describe the disease, clinical trial and possible price movement. A MUST READ
http://a6research.blogspot.com/2012/07/a-great-biotech-investment-opportunity.html

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[ChemoSabe]

What do you all think about this stock MNKD

http://www.google.com/finance?client=ob&q=NASDAQ:MNKD

They make inhalable rapid acting insulin. Rejected twice by FDA already. Third time's the charm? Anyway, its breaking out on the upside.


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[daysinnnc]

Man. this guy is really good. He just posted about new Parkinson's psychosis drug. it seems really interesting since there are not current drug to treat that besides anti-psychotics with lots of s/e
http://a6research.blogspot.com/2012/07/a-promising-drug-on-horizon-acadia.html

 

[WVUPharm2007]

I just took a l look at the specifics of my investment funds...Aggressive basket...9% Apple, Inc. Large-Cap basket...12% Apple. Moderate basket...12% Apple.

Apparently, like, 10% of my stock-based funds are invested in Apple. Which I guess explains why its been doing well...but, still...God damn I hate those ****s.

 

[Momus]

You are talking about 401k? What are CVS funds for 401k? Can you copy and paste what they offer to invest in (ticker symbol)?

 

[Its Z]

This guy is actually really good with his analysis on Trius & Tedizolid.

Though I see some issues with his analysis... you can see my comments and discussion with the author in the comment section.



Trius - Tedizolid

 

[hereticmnk]

This guy is actually really good with his analysis on Trius & Tedizolid.

Though I see some issues with his analysis... you can see my comments and discussion with the author in the comment section.



Trius - Tedizolid

An extremely esoteric conservation there John. I felt lost

 

[Its Z]

An extremely esoteric conservation there John. I felt lost

And my latest comment hasn't been posted yet. It's under moderator review.

Smith's MRSA market review is the best I've read. I do think he overestimated Vanco marketshare by using oral vanco by Viro Pharma into the MRSA market basket.

I also think he's over estimating Tedizolid's marketability against generic Zyvox.

Nonetheless, I have a tremendous amount respect for his pharma analysis. Not bad for a non-pharmacist.

 

[RickRossPharmD]

First off, as a newly minted RPh, let me say seeing this thread in the top 3 on the first page brought a ray of sunshine to my computer room. I love investing and am always open for an opportunity. Currently, my 401k funds are 100% invested in an S+P 500 index fund. My current thoughts on investing include the safe, boring, dollar cost averaging into either index funds or good fundamental companies (preferably with dividends). Most of my trades have failed, and yes, I was preaching buy AAPL when it was 70 to everyone I knew. I bought aapl (this was undergrad), and sold out 3 weeks later at 95. I needed the money.

Aaaaanyway, I LOVE cubicin. I'd like to visit cubist pharmaceuticals to see their headquarters, because by their website they seem like a bunch of hippies. Their drug, however, BINGO. What's going through the roof? Diabetes. What comes with Diabetes? Poor compliance and ulcers/infections. What's those lead to? Some resistant-ass MRSA that's what! Vanco is all day, but for those special ones, Cubicin is what they go to. Here's where the poetic beauty to Cubicin comes in. It's a weight based drug. Diabetics are usually huge. Next thing you know you have to use 3k worth of Cubicin vials to mix up one IV dose. $$$$$$$$$$$
On the other note, I've somewhat followed the stock and haven't noticed any impressive movement.

 

[RickRossPharmD]

Also, is Tedizolid an MAOI like Zyvox? Or does it bear some other strange interaction like Dapto?

 

[RickRossPharmD]

What do you all think about this stock MNKD

http://www.google.com/finance?client=ob&q=NASDAQ:MNKD

They make inhalable rapid acting insulin. Rejected twice by FDA already. Third time's the charm? Anyway, its breaking out on the upside.


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Jim Cramer loves Mankind, but I think we should learn from the lessons of history here when it comes to inhaled Insulin. Destined to fail IMO. Mannkind is at an attractive pricepoint right now, and I would consider buying some for a non-AFREEZA related trade.
See www.seekingalpha.com/article/826981-5-bio-pharma-stocks-to-buy-right-here for this quote...
"Recall that founder and CEO Alfred Mann just shelled out $77 million to accumulate even more shares...MannKind last closed at $2.45, 2 cents under where the 390th richest man in the world bought all those shares." Currently at 2.39 as I write this.

 

[Its Z]

Tedizolod is an oxazolidinone.

 

[xiphoid2010]

Also, is Tedizolid an MAOI like Zyvox? Or does it bear some other strange interaction like Dapto?

zyvox is also an oxazolidinone. It just has some mild MAOI activity.

Chemistry wise, it's a very simple molecule to make. Once it after the exclusivity period post patent expiration, the price will drop precipitously.

 

[joetrisman]

Also, is Tedizolid an MAOI like Zyvox? Or does it bear some other strange interaction like Dapto?

SIDP had a decent article about the compound in their newsletter this year

 

[hereticmnk]

And my latest comment hasn't been posted yet. It's under moderator review.

Smith's MRSA market review is the best I've read. I do think he overestimated Vanco marketshare by using oral vanco by Viro Pharma into the MRSA market basket.

I also think he's over estimating Tedizolid's marketability against generic Zyvox.

Nonetheless, I have a tremendous amount respect for his pharma analysis. Not bad for a non-pharmacist.

You seem pretty knowledgeable with this. Self taught or formal didactic training ?

 

[Its Z]

You seem pretty knowledgeable with this. Self taught or formal didactic training ?

Im just really smart. My mom said so.

 

[joetrisman]

zyvox is also an oxazolidinone. It just has some mild MAOI activity.

Chemistry wise, it's a very simple molecule to make. Once it after the exclusivity period post patent expiration, the price will drop precipitously.

I've heard from many the MAOI activity is exaggerated. Seems like it might be true: Comparison of serotonin toxicity with concomitant use of either linezolid or comparators and serotonergic agents: an analysis of Phase III and IV randomized clinical trial data

 

[hereticmnk]

Im just really smart. My mom said so.

Well then it must be true.

I need to start learning about these things soon

 

[Momus]

I bet a pizza chopper-full-of-cash Bernanke is going to pop QE3 and it will send stocks to new high. Well, If I am wrong, it's still going to be an interesting day the next 3 days with Apple announcing Iphone 5 and tons of kids lining up to buy over-hyped product.

What are they going to add? More camera, more resolution, more SIRI, more speed... It's a tired product... Apple needs to come up with something radically new in the next couple days. Maybe, I will be a buyer of Iphone10, one that can pop my zits automatically when I turn it on.

 

[Momus]

BOOOM QE3 X_X Today paycheck going to buy more shares =( hated when I buy into a rally like this... I wish stocks were down 50% when I am young so I can buy more shares. S&P is up 16% year to date -.-; & Apple as expected nothing revolutionary...

 

[cycloketocaine]

You seem pretty knowledgeable with this. Self taught or formal didactic training ?

Oh lawd, he does not need the ego boost.

 

[Its Z]

My ego doesnt need no stinking boosting.

 

[xiphoid2010]

BOOOM QE3 X_X Today paycheck going to buy more shares =( hated when I buy into a rally like this... I wish stocks were down 50% when I am young so I can buy more shares. S&P is up 16% year to date -.-; & Apple as expected nothing revolutionary...

Aye, for youngsters, a bear market is what we hope for early on, although I don't feel young any more, now with family in tow. But really, you should thank the current market, image what if you started just before the housing bubble went pop, several years of negative return early on can ruin your long term plans.

 

[Momus]

Aye, for youngsters, a bear market is what we hope for early on, although I don't feel young any more, now with family in tow. But really, you should thank the current market, image what if you started just before the housing bubble went pop, several years of negative return early on can ruin your long term plans.

If I know what I know now. I'd be buying heavily during the bear market and come out way ahead of the game. I always buy my ice cream/potato chips in bulk when it's on sale 50% off. I will not treat stocks any differently. I know I would not be waiting until it drops 90% because that's not really realistic.

Bear markets/stocks flat for years then soars like crazy is what I am hoping. I've got 37 years of human capital worth (~$125k X 37 = $4.6M) to tackle any bear markets lol. The only person who should be unhappy during bear markets is retirees, because they will be the net seller of equities with no human capital left.

 

[WVUPharm2007]

BOOOM QE3 X_X Today paycheck going to buy more shares =( hated when I buy into a rally like this... I wish stocks were down 50% when I am young so I can buy more shares. S&P is up 16% year to date -.-; & Apple as expected nothing revolutionary...

Damn, I'm glad I flipped more to stocks last week. The Fed says they are turning on the faucet until AFTER the economy recovers and won't let up.

About damn time. All this recession has done is proven the liquidity trap theory.

 

[BMBiology]

BOOOM QE3 X_X Today paycheck going to buy more shares =( hated when I buy into a rally like this... I wish stocks were down 50% when I am young so I can buy more shares. S&P is up 16% year to date -.-; & Apple as expected nothing revolutionary...

I own almost 0 bonds but as of today, 50% of my allocation is in bonds, 20% in small U.S caps, 10% large U.S caps, 20% international. Before QE3, it was 20% large U.S caps, 40% small caps and 40% international.

The goal is not for your stocks/bonds to do well now but to buy them at a low price where there is a lot of potential for growth in the next 20-30 years.

 

[Momus]

I own almost 0 bonds but as of today, 50% of my allocation is in bonds, 20% in small U.S caps, 10% large U.S caps, 20% international. Before QE3, it was 20% large U.S caps, 40% small caps and 40% international.

The goal is not for your stocks/bonds to do well now but to buy them at a low price where there is a lot of potential for growth in the next 20-30 years.

I don't market time. I have 90/10 stock/bond until I am 55, which is 27 years from now. Then, I switch to 60/40 til I die. Asset allocation drives 90% of your return. Whether market is up or down, every paycheck is going into the asset allocation and I rebalance when the target +/- 5% absolute or -/+ 20% off target.

50% bond is too much for someone my age. Besides, bond in the very long term will not beat stocks.

My portfolio in taxable looks like this:
Domestic
40% Vanguard Index Trust/Total Stock Market Index Fund (VTSAX)
18% Vanguard Small Cap Value Index Admiral (VSIAX)
International
6.65% Euro (VEUSX)
6.65% Pacific (VPADX)
9.1% Vanguard Emerging Markets Stock Index Fund (VEMAX)
9.6% Small Cap Developed and Emerging (VSS)
Bond
10% Vanguard Tax exempt Bond

 

[BMBiology]

It is going to take a while for me to own a significant amount of bond since I just started buying bonds. My goal is to own 20-30% bonds. Don't underestimate bonds. They have outperformed stocks for the past 10 years.

 

[BMBiology]

9.1% Vanguard Emerging Markets Stock Index Fund (VEMAX)

Too bad my 401 k option does not include emerging markets. I am thinking about buying it for my roth ira

 

[pezdispenser]

I don't market time. I have 90/10 stock/bond until I am 55, which is 27 years from now. Then, I switch to 60/40 til I die. Asset allocation drives 90% of your return. Whether market is up or down, every paycheck is going into the asset allocation and I rebalance when the target +/- 5% absolute or -/+ 20% off target.

50% bond is too much for someone my age. Besides, bond in the very long term will not beat stocks.

Ah but market timing is soooo addictive. I sold almost all of my stock in May 2008 when the S&P 500 was around 1,400. The market then crashed, and I bought back the stock at around half price in March 2009. S&P 500 is now back at 1,465. That was my winning lottery ticket. I don't expect to win big like that ever again.

But I see so much volatility in the stock market since 2000, and we have had multiple crashes during that time, that I don't have the balls to go 90/10 stock/bond like everyone recommends. Probably they are thinking way back to the past 100 years, but investing was totally different back then so I don't think the same rules apply.

I only go 60/40 so that when there is an inevitable market crash, I still have decent money in bonds that I can move over and buy stock when it is cheap. Even a constant 60/40 ratio has done pretty well over the past 10 years. You can compare Vanguard LifeStrategy Mod Growth VSMGX (60/40) with LifeStrategy Growth VASGX (80/20) and remember to compound dividends. But this doesn't show the effect of regular contributions and dollar cost averaging. Does anyone know any chart that does this?

 

[Momus]

But I see so much volatility in the stock market since 2000, and we have had multiple crashes during that time, that I don't have the balls to go 90/10 stock/bond like everyone recommends. Probably they are thinking way back to the past 100 years, but investing was totally different back then so I don't think the same rules apply.

I only go 60/40 so that when there is an inevitable market crash, I still have decent money in bonds that I can move over and buy stock when it is cheap. Even a constant 60/40 ratio has done pretty well over the past 10 years.

"The four most dangerous words in investing are: 'this time it's different.'" Sir John Templeton, legendary investor and philanthropist.

I won't shot down anyone with 40% bonds because everyone's risk tolerance is different. If you could not sleep well during the crash, you had too much in stocks. I can stand 50% drawdown without blinking an eye now and actually put every available cash I don't need in the next 20 years to buy more stocks. Everything in my portfolio is buy, hold, rebalance position and has a time horizon of 27 years. I am not looking for only 10 year period. Stocks goes down, great; I will still sleep like a baby!! Buy one get one free? Who wouldn't want that?

 

[WVUPharm2007]

It is going to take a while for me to own a significant amount of bond since I just started buying bonds. My goal is to own 20-30% bonds. Don't underestimate bonds. They have outperformed stocks for the past 10 years.

Yeah...but to be fair, that includes a horrific worldwide recession and the world is slowly starting to turn away from the austerity craze of 2009 into a more rational approach to recovery...which will likely include continual stimulus and devaluing of bonds...and increased demand and manufacturing.

 

[Momus]

I only go 60/40 so that when there is an inevitable market crash, I still have decent money in bonds that I can move over and buy stock when it is cheap.

I always suggest risk averse people who can't tolerate drawdown to use 60/40 stock/bond.

Or if you are really risk averse, build a permanent portfolio / buy PRPFX. Average 9% return annually with almost no drawdown. From 1972-2011, it has very low volatility, 3 losses with a worst loss in a single year of -4% only in 1981, 9.7% average annual return. Read more if you are interested here.

 

[BMBiology]

Yeah...but to be fair, that includes a horrific worldwide recession and the world is slowly starting to turn away from the austerity craze of 2009 into a more rational approach to recovery...which will likely include continual stimulus and devaluing of bonds...and increased demand and manufacturing.

But also to be fair, where is the money for the stimulus coming from? From bonds.

 

[Momus]

But also to be fair, where is the money for the stimulus coming from? From bonds.

Wrong... Fed is done cutting interest rate to 0-0.25%, they can't cut anymore.

The only last resort option they have is quantitative easing/QE/stimulus comes from printing tons of money out of thin air to buy assets (treasury bonds). How? Say you are Goldman Sachs (GS). You have 50 billion dollar worth of bonds. Fed says "Yo, dude, I am buying all your bonds for a little than anyone else willing to buy." You said "Fu*king great, wire me the money." Sure, let me print some money and wire it to you. When Fed buys these bond, bond prices goes up and Fed continues buying them and Fed doesn't give a **** about the bond prices; after all, they are printing money to buy these bonds. That is why you see really strong out performance of bonds in the last 5 years.

Fed got the bonds and GS on the other hand just got 50 billion dollars extra money around. Now, whatever you want to do with that 50 billion dollars of liquidity is up to you. Fed HOPES you are going to lend it to people so other people can invest it. Whether it works or not is anyone guess.

Stimulus by printing money (QE) dilutes dollar purchasing power and increases inflation.

 

[WVUPharm2007]

Stimulus by printing money (QE) dilutes dollar purchasing power and increases inflation.

...and yet there has been no inflation after QE1 and QE2. Won't be any inflation until after the economy picks up. People always seem to think that an increased money supply magically causes people to start asking more for things. Not in a liquidity trap. If everyone pays off debt or saves...no economic boost...no adjustments to increased demand...no inflation. That's what happened in Japan...and that's America in a nutshell from 2008-2012. It got to the point where 10 year US bonds had a negative rate. People were paying the US to take their money. Hilarious.

 

[Momus]

...and yet there has been no inflation after QE1 and QE2.

No inflation for the past 3 years? idk about that... here I know...
Tution is up
Gas is up
Food is up
Health care cost is up
Stock is up
Bond price is up
Car is up
Coffee is up
Chocolate is up
Movie ticket is up
Gold is up

Consumer price index is bull**** when all the extra money goes to seek return. IF you think, it does not happen here, it happens at another parts of the world creating another bubble somewhere else.

 

[pezdispenser]

I won't shot down anyone with 40% bonds because everyone's risk tolerance is different. If you could not sleep well during the crash, you had too much in stocks. I can stand 50% drawdown without blinking an eye now and actually put every available cash I don't need in the next 20 years to buy more stocks. Everything in my portfolio is buy, hold, rebalance position and has a time horizon of 27 years. I am not looking for only 10 year period. Stocks goes down, great; I will still sleep like a baby!! Buy one get one free? Who wouldn't want that?

But did you actually go through the crash of 2008 or 2000-2003 when stocks did lose 50%? I think you are 28 now, so maybe you didn't. Because if you did, you would probably have different ideas about what it's like to lose 50%, and what actions you would now take (through asset allocation) to protect your assets. Also as you get older, the amount you have already invested becomes more substantial compared to what you add each year (e.g. $17k for a 401(k)) so dollar cost averaging has less and less effect.

 

[WVUPharm2007]

It isn't. In order for prices to inflate, the economy must provide an impetus for it. Just look at the crazy days of The New Deal. All that government borrowing and spending. Very little inflation until the economy picked up due to the war effort and produced incredible demand.

I got charts. Inflation has been pretty low and pretty steady since the start of the depression. Why? Because there is no consumer demand. You need more cash in play and people willing to spend it to get inflation. Not one or the other...both.

Tuition is up --Has more to do with the academic arms race and a lack of rational regulation in prices. Tuition has outpaced inflation since forever. This is a bubble waiting to happen. Higher education needs regulated MUCH more strenuously.

Gas is up -- Mostly due to increased demand in developing countries.

Food is up -- Depends on which food...and there are an assortment of reasons outside of the real value of money.

Health care cost is up -- Mostly due to our unsustainable healthcare system. Healthcare has outpaced inflation since the 60s.

Stock is up -- Mostly due to actual growth...and speculation.

Bond price is up - ...?

Car is up - Interestingly, used cars are worth more...mostly due to a depressed economy. But I don't really agree that new cars necessarily are "up."

Coffee is up -- Due to several years of poor harvests in Columbia.

Chocolate is up -- Due to increased turmoil in Costa Rica and resultant decrease in supply...its where almost half of cocoa is produced.

Movie ticket is up -- It always goes up. This may have to do with piracy more than the inflation monster. But I don't think its gone up more than it has in the past.

Gold is up -- Due to idiots speculating over an intrinsically worthless metal. Unless you really think the value of the dollar has decreased over 4 fold since 2003. Which it most certainly hasn't.

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I'm tellin' ya...you won't see real inflation until we have a sustained recovery that hits employment numbers and spurs demand. Until then, people will save and pay off debt. I've called Paul Krugman an idiot on here before, but I'm starting to realize that maybe he's the only dude out there that makes any sense...and he predicted all of this lack of inflation and liquidity trap stuff back in 2008. Dude knows.

 

[pezdispenser]

devaluing of bonds

I thought it was the opposite? The Federal Reserve is buying and pumping up bond values (with money that they grab out of thin air) so that the interest rate yields will be low, right?

So now people have to use that money and spend it to stimulate the economy. Either the government by spending the super low interest rate Treasury bonds it is getting, or people by using the super low rate mortgages to buy houses. This doesn't seem to be happening yet, so I agree with you on what you said about no massive inflation yet. I'm not worried about inflation because I'm pretty sure the Fed will keep a very close eye on this and will reduce the money supply and raise interest rates to counter it.

 

[Momus]

The Federal Reserve is buying and pumping up bond values (with money that they grab out of thin air) so that the interest rate yields will be low, right?
Why I said bond price/value is up

No massive inflation yet. I'm not worried about inflation because I'm pretty sure the Fed will keep a very close eye on this and will reduce the money supply and raise interest rates to counter it.

That's because the CPI index WVU using is BS. CPI does not count energy prices, food, or housing cost.. The government argues that these are "too volatile" to be included in the CPI... even though it affects you directly.

In the housing market, instead of housing prices, they include a figure called "Owners Equivalent Rent" which goes down when interest rates are lowered. The result is an ever increasingly manipulated picture of what inflation looks like.

It's estimated by some that programs directly linked to inflation like Social Security are making far lower payouts than they should be making because the manipulated CPI figures are estimating inflation at a lower rate than it actually is.

All commodity prices are up. If you have 10 bucks to start, now you have 12 bucks. They WILL go up. Commodity is the first one that react to excess money.

If you think Fed can do **** about economy or anything, you are in for a big surprise. They didn't do **** on internet bubble, they didn't do **** on housing bubble. In fact, in both instances, they helped creating the bubble by forever lowering interest rate. I don't know what the next bubble due to low interest rate environment & massive injection of liquidity is going to be, but it ain't pretty once they start trying to tame the inevitable inflation by raising interest rate.

 

[BMBiology]

Wrong... Fed is done cutting interest rate to 0-0.25%, they can't cut anymore.

The only last resort option they have is quantitative easing/QE/stimulus comes from printing tons of money out of thin air to buy assets (treasury bonds). How? Say you are Goldman Sachs (GS). You have 50 billion dollar worth of bonds. Fed says "Yo, dude, I am buying all your bonds for a little than anyone else willing to buy." You said "Fu*king great, wire me the money." Sure, let me print some money and wire it to you. When Fed buys these bond, bond prices goes up and Fed continues buying them and Fed doesn't give a **** about the bond prices; after all, they are printing money to buy these bonds. That is why you see really strong out performance of bonds in the last 5 years.

Fed got the bonds and GS on the other hand just got 50 billion dollars extra money around. Now, whatever you want to do with that 50 billion dollars of liquidity is up to you. Fed HOPES you are going to lend it to people so other people can invest it. Whether it works or not is anyone guess.

Stimulus by printing money (QE) dilutes dollar purchasing power and increases inflation.

Momus, all due respect but thinking you know how the market would respond is your enemy. Nobody does.

Weren't you the one who put a whole bunch of money in early 2011 because "stocks always do well a year before a presidential election?". Didn't the market crash 9 months later?

 

[Momus]

Momus, all due respect but thinking you know how the market would respond is your enemy. Nobody does.

Weren't you the one who put a whole bunch of money in early 2011 because "stocks always do well a year before a presidential election?". Didn't the market crash 9 months later?

No one can predict the market. I lump sump my 401k at the beginning of the year every year; time IN the market is important. No one here says they can predict the market.

Bear market always happen. You should expect it to happen many times during your investing life. I stay the course. I am staying true to my 90/10 asset allocation and put money in whether market is up or down.

 

[BMBiology]

No one can predict the market. I lump sump my 401k at the beginning of the year every year; time IN the market is important. No one here says they can predict the market.

Bear market always happen. You should expect it to happen many times during your investing life. I stay the course. I am staying true to my 90/10 asset allocation and put money in whether market is up or down.

All due respect (again), you are only 28? You don't have much of a track record of "staying the course" yet. Come back when you are at least 30 year old.

It is also easy to say you wouldn't worry if the market drop 50% when you have only put money in the stock market in the last few years. Lets see you say that when you have a lot more money in the stock market and a few years from retirement.

Btw, thinking the stock market will do well a year before a presidential election is market timing.

I am singling you out because you talk a good game for someone who is still a novice.

 

[Momus]

All due respect (again), you are only 28? You don't have much of a track record of "staying the course" yet. Come back when you are at least 30 year old.

It is also easy to say you wouldn't worry if the market drop 50% when you have only put money in the stock market in the last few years. Lets see you say that when you have a lot more money in the stock market and a few years from retirement.

Btw, thinking the stock market will do well a year before a presidential election is market timing.

I am singling you out because you talk a good game for someone who is still a novice.

Thinking and expecting how the market goes does not necessarily mean you are market timing if you stick to the plan. I am thinking we will have inflation because of all the money printing, does it mean I am gonna stop contributing or try to market time? No.

Sure, I will take that challenge. That can only solidify my discipline, no waver it

 

[Momus]

Note the change of investing philosophy for the better.

Before embracing indexing, I was a market timer/active trader without a real plan. After buying a couple stocks and watching them trailing vs S&P index, I became a true convert of John Bogle's teaching with conviction. If I did not have a conviction with my own plan, I'd get slaughtered in the market.

 

[pezdispenser]

If you think Fed can do **** about economy or anything, you are in for a big surprise. They didn't do **** on internet bubble, they didn't do **** on housing bubble. In fact, in both instances, they helped creating the bubble by forever lowering interest rate. I don't know what the next bubble due to low interest rate environment & massive injection of liquidity is going to be, but it ain't pretty once they start trying to tame the inevitable inflation by raising interest rate.

The internet bubble as in the tech stock crash of 2000? The Federal funds rate was around 5.5% from 1995-2001, then they reduced it to 1% over the period 2001-2004 AFTER the internet bubble burst. Anyway, the Fed is not in the business of pumping up the stock market, and the stock market is not The Economy so I don't understand what you mean here.

The Fed then raised rates from 2004-2007 to 5.25% during the lead up to the housing bubble. However, this is just the Federal funds rate and mostly only affected ARMs, not fixed rate mortgages. Still, most people say it was irresponsible lending standards that caused the housing bubble, not the interest rate, so again I don't think the Fed caused the housing bubble.

But now with quantitative easing the Fed does have a lot more control on the markets, money supply and interest rates outside the realm of the Federal funds rate, because they are directly buying longer term treasury bonds, bank bonds and MBS, so they do have to keep a very close eye on inflation and reverse course if it increases too much.

 

[JamesL1585]

What do you guys think of $GALE?

Thank me later

 

[Momus]

Ordered $5k to buy vanguard total stock market... low and behold market goes up another 40 points. Fat friggin jesus, why does it have to go up so much every time I buy? Should have gotten paid yesterday when it was down...

 

[BMBiology]

Ordered $5k to buy vanguard total stock market... low and behold market goes up another 40 points. Fat friggin jesus, why does it have to go up every time I buy so much? Should have gotten paid yesterday when it was down...

is this for your roth ira?