B.I.G. Tips — Biotech Bubble Trends

Jun 2, 2016

After a six-year rally of nearly 600%, the Biotech group finally broke down in 2015 when it peaked last July 20th.  Currently, the group is down 29.3% from its all-time high, although at its lows in February it was down 38.8%.  Biotech has made a series of higher lows (a positive formation) over the last 3.5 months, which is certainly a welcome sign.   For the trend to really shift, however, Biotech needs to break out of the current downtrend channel that it’s stuck in.

In a report sent to Bespoke Premium and Bespoke Institutional clients this morning, we compared the run that Biotech has had over the last few years to prior bubbles and busts that we’ve seen in other asset classes.  Below is a chart from the report that may pique your interest.  If you would like to see the full publication to get our thoughts on where Biotech has been and where it may be headed, please sign up for a monthly Bespoke Premium membership below!

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See the full B.I.G. Tips report by signing up for a monthly Bespoke Premium membership now.  Click this link for a 10% discount ($89/month).

B.I.G. Tips – S&P 500 Treading Water

May 16, 2016

Since peaking out at 2,130.82 (on a closing basis) last May, the S&P 500 has seen its share of volatility.  Despite the big swings, though, the index is currently within 3% of that all-time closing high from one year ago.  Come this weekend, though, the S&P 500 will have gone a year without making a new 52-week high. While that may not sound like much, given that 2014 saw the fifth most daily closes at an all-time high on record, it has been a bit of an adjustment period for investors.

S&P 1 Year

In a B.I.G. Tips report just sent to Bespoke Premium and Bespoke Institutional members, we looked at prior periods where the S&P 500 went at least a year without closing at a 52-week high.  For each period, we also included an analysis of the S&P 500’s performance in the weeks and months following.

See the full B.I.G. Tips report by signing up for a monthly Bespoke Premium membership now.  Click this link for a 10% discount ($89/month).