Market Sentiment Observer

I may post here relevant (in my opinion), and not necessarily recent, quotes. Rather than analyzing specific investments, I will attempt to focus on investors' sentiment regarding broader asset classes and/or specific securities. These will be my thoughts/reactions/questions, and they are not and should not be taken as investment advice.

About me

In particular, I am interested in investors' sentiment and valuation levels. Disclaimer: I work at an Investment Management firm. My comments on this site are not posted in that role, and no opinions of mine should be construed to be recommendations of or to reflect the views of my employer.

Thursday, June 3, 2010

Market Sentiment

"Treasury Prices Fall as Sentiment Improves... Euro Gains as Worries Recede... Gold Slips as Safety Play Simmers on Back-Burner"
WSJ

Overall, looks rather positive. Time to sell?

Also, John Mauldin is talking about the biotech stocks and how they may become the next "it".
I like the idea of biotech because of its inherent exposure to the so-called positive "Black Swans".
In some ways, they are similar to book publishers: if one book out of 10/20/30 becomes a hit, the business is good. Downside is somewhat limited and the potential upside can be very significant. And the product is super scalable, too. Unlike dentistry (I am borrowing heavily from Taleb here).