Vaccines & villains

DOUG  By Guest Blogger Doug Rowat
.

Biotechnology always gets a bad rap.

Whether it’s the smug face of “pharma bro” and price gouger Martin Shkreli, the evil biotech laboratories in Hollywood movies such as Logan, or simply the fact that the Nasdaq Biotechnology Index is 60% more volatile than the S&P 500, the biotechnology sector tends to frighten many.

But relax. The pharma bro is safely in prison serving, hopefully, another five years, cyborg-villain Donald Pierce and all the other baddies at Transigen Laboratories got what was coming to them in Logan, and volatility can always be controlled through diversification.

In other words, investing in the biotechnology space should be viewed with caution but not fear.

And lately, it’s been a great place to be invested. Driven by the strong economy, solid R&D pipelines and record levels of M&A activity (represented best by last year’s blockbuster US$74 billion deal between Bristol-Myers Squibb and Celgene) the biotechnology sector advanced an impressive 25% in 2019. Though biotechnology hit the Covid-19 brick-wall in March 2020, as did every sector, it didn’t take the market long to realize that the best hope for an effective Covid-19 treatment likely lay within the biotechnology sector’s research pipeline. This year the sector’s up another 14% y-t-d, making it one of the best places to be invested in 2020.

And the good news continues. M&A activity has again picked up, including the announcement this week of a US$21 billion acquisition of Immunomedics by Gilead Sciences, signaling renewed sector confidence. And Credit Suisse, in a research note, also just this past week, emphasized its positive sector view stating bluntly that “Biotech will likely be the solution to the pandemic”.

Further, we also had another bullish industry report released earlier this month from Fior Markets, which forecasts that the global biotechnology market will nearly double from US$448 billion in 2019 to US$833 billion by 2027. Other forecasts have the sector eclipsing US$1 trillion in similar timeframes.

While biotechnology has obvious promising applications for infectious diseases, there are also opportunities in all sorts of other areas including gene therapy and regenerative medicine. Treatments for a variety of diseases ranging from hepatitis B and Alzheimer’s to stroke and cancer are also showing great promise in clinical trials. Interestingly, applications in the agricultural space also represent growth drivers for the sector.

The sector also has other advantages. Biotechnology products are considered necessities, so manufacturing slowdowns that plague many other industries at the moment are unlikely to impact the supply chain for biotech. And many of the core fundamentals that support the broader health care sector, such as an aging population, also support the biotechnology sector.

While the more immediate prospects for biotechnology are obvious given the Covid-19 world that we live in, the long-term track-record for the sector also shouldn’t be overlooked. The Nasdaq Biotechnology Index has returned 18% annually over the past decade, for example. And finally, from a technical perspective, the Index’s recent breakout from a long-consolidating ‘wedge’ pattern is also bullish.

Nasdaq Biotechnology Index: Bullish breakout from well-established ‘wedge’ pattern

Source: Bloomberg, Turner Investments

However, given its higher risk, the biotechnology sector must be approached carefully and exposure only added within an otherwise well-diversified portfolio. But, if you’re patient, we believe that it’s a good place to be over the long term.

Unlike the federal prison in Pennsylvania where Mr. Shkreli currently resides.

Doug Rowat, FCSI® is Portfolio Manager with Turner Investments and Senior Vice President, Private Client Group, Raymond James Ltd.

 

76 comments ↓

#1 Dmno on 09.19.20 at 9:19 am

I’d like to remind you Logan volunteered for that adamantium injection.

#2 Dharma Bum on 09.19.20 at 9:57 am

The Healthcare sector has always been good to me. I remember reading a Rob Carrick article in the Globe about ten years ago explaining how healthcare & pharmaceuticals were positioned to skyrocket. So, I bought one of the recommended mutual funds (yah, yah, I know). Today that fund is up over 100%, plus the dividends. Yay big pharma!

#3 Trawna on 09.19.20 at 10:02 am

Let’s not forget Elizabeth Holmes of Theranos, the biggest fraudster to come out of Silicon Valley biotech in recent years. She had every single Deep Stater on her board up to and including Henry Kissinger. That’s what you get for being an attractive con-artist.

https://www.livemint.com/news/world/former-theranos-ceo-elizabeth-holmes-may-pursue-mental-disease-in-her-defense-11599715784385.html

#4 C V on 09.19.20 at 10:03 am

I’m sure I own lots of companies who I don’t really agree with or support on many ways, but owning big pharma seems like directly investing in corruption

#5 Free Fall on 09.19.20 at 10:18 am

I travelled to Nova Scotia from Ontario in the 70’s and stumbled into a Buffalo Springfield concert in Halifax, followed up by a rockin’ time at a Halifax all night Cabaret. Quite a night, unforgettable after all these years. The Buffalo Springfield name on the back of their bus was carved in wood.

Question, will holding an international etf hedged to the Canadian dollar offer portfolio protection if the value of the Canadian dollar drops. Registered accounts have been converted to U.S. bucks so I am asking about Canadian cash accounts. Thanks.

#6 Time is #1 on 09.19.20 at 10:23 am

Great post as always Doug.
What is the best way to be invested in this sector? Is it represented enough in a US small cap etf for your clients or biotech equal weight or capped be best?
Cheers.

#7 Prince Polo on 09.19.20 at 10:26 am

Is that the Incredible Hulk vaccine??

Doug/Ryan – you are the Credible Hulks of greaterfool:
https://www.pinterest.com/pin/139822763407852428/

#8 YouKnowWho on 09.19.20 at 10:29 am

I’m just going to just point this little article for you from a while back where Goldman Sachs asks if “Curing patient is a sustainable business model”. Then you decide if your outrage should be at Pharma guys or Finance guys…or both.

https://www.cnbc.com/2018/04/11/goldman-asks-is-curing-patients-a-sustainable-business-model.html

#9 YouKnowWho on 09.19.20 at 10:37 am

Bret Weinstein – Evolutionary Biologist has recently discovered a flaw in Pharma drug R&D process that is so significant, it puts into question every drug developed over past many decades. It makes you question why these drugs have so many side effects and are so damaging to human tissues.

He has gone public with this information, with full scientific proof and data behind it. And everyone is conveniently looking away, because it would require all the science and qualification on drugs we use to be redone.

Listen to Bret Weinstein fully discuss this at link below. While this episode is full of amazing info, I know web dogs may have limited attention spans, so go to: 2hr 33min point in the podcast to listen about his incredible discovery about the little white mice and why it matters to you!

https://www.youtube.com/watch?v=pRCzZp1J0v0

“Bret Weinstein was interviewed on the Joe Rogan show and Bret claimed that the breeding protocols and telomeres of lab mice are broken. Bret claims that this problem is so severe that it calls into question the safety and correctness of decades of pharmaceutical studies.”

#10 kc on 09.19.20 at 10:47 am

Just caught up reading 10 days of missed blog posts (not the comments).

Reading the passing of SM brought a tear to my eye, he was a card for sure and a guy who was loved to be hated. nice post Garth.

I spent time on the east coast USA, touring in VA and NC. Trump signs are 10-1 over Biden. should be an interesting November for sure.

From what I can take of the people I talked with on the streets, many are fed up with all of it. The election hype, the Covid propaganda and the extreme left vs. right sides.

Many will argue their beliefs till death while others will just walk away and know it isn’t worth the time.

Travel isn’t as bad as 1 would make out to believe. Never had an issue anywhere I ventured to. Masks on most part seemed more optional than mandatory. And was never denied entry anywhere i went, except one pizza hut by a real pissed off employee. so i left. Didn’t need that hassle.

Anyone afraid to travel is actually missing out on some good deals. Less people in popular places and better service by those who want to see your money.

your mileage may vary, cheers.

#11 Shawn on 09.19.20 at 11:22 am

Long XBI and ARKG

#12 Andrewski on 09.19.20 at 11:35 am

The last 6 months have some people thinking that this Logan reference might be the way of the future?
https://www.imdb.com/title/tt0074812/

#13 Steerage on 09.19.20 at 12:00 pm

#10 kc on 09.19.20 at 10:47 am
Just caught up reading 10 days of missed blog posts (not the comments).

Reading the passing of SM brought a tear to my eye, he was a card for sure and a guy who was loved to be hated. nice post Garth.

I spent time on the east coast USA, touring in VA and NC. Trump signs are 10-1 over Biden. should be an interesting November for sure.

From what I can take of the people I talked with on the streets, many are fed up with all of it. The election hype, the Covid propaganda and the extreme left vs. right sides.

Many will argue their beliefs till death while others will just walk away and know it isn’t worth the time.

Travel isn’t as bad as 1 would make out to believe. Never had an issue anywhere I ventured to. Masks on most part seemed more optional than mandatory. And was never denied entry anywhere i went, except one pizza hut by a real pissed off employee. so i left. Didn’t need that hassle.

Anyone afraid to travel is actually missing out on some good deals. Less people in popular places and better service by those who want to see your money.

your mileage may vary, cheers.

….

So much for a closed border eh….

#14 Drill Baby Drill on 09.19.20 at 12:02 pm

She can vaccinate me anytime.

#15 Dogman01 on 09.19.20 at 12:08 pm

Very discerning observation regarding Smoking Man the other day Doug.

Bravo.

#16 kc on 09.19.20 at 12:43 pm

13 Steerage on 09.19.20 at 12:00 pm

So much for a closed border eh….

——–

Fly the friendly skies…. :)

#17 DON on 09.19.20 at 12:43 pm

#194 crowdedelevatorfartz on 09.18.20 at 11:15 pm
@#150 MF
“#138 Ponzius Pilatus on 09.18.20 at 6

Haha savage comment. Well done’
====

would you two like to get a room?
I hear there are awesome deals in Vegas.
And what happens in Vegas……..stays in Vegas.

( i feel a little dirty just typing that……

*******

Perfect day to watch the Hang Over 1, 2, and 3.

#18 NoName on 09.19.20 at 12:45 pm

#14 Drill Baby Drill on 09.19.20 at 12:02 pm
She can vaccinate me anytime.

As i sed before, fear sells, sex sells even more…

Here is questions for you. What if vacine will alter you dna and maks you liberal, Would you steel take it?

#19 Westcdn on 09.19.20 at 12:59 pm

I wrote back that I send money to die in pharma –a number of reasons why. I like cash flow and dividends so it has tainted my view that this industry is fueled by speculation. I found the big guys too expensive so I gambled with the start-ups hoping for gem to pay for my losses – hasn’t worked out yet and I have burned money. I am still on the sidelines.

I am reminded of my spitfire daughter for soccer tryouts – parents pushed her to 2nd division – she said Dad don’t worry because I know I am better = she proved it in spades when her team beat them and not kindly.

The biggest reason is why asset prices are they are. I blame cheap money that has inflated hard assets such as RE but this money is dead when it comes to producing value. In my mind value is producing more at less cost. It will mean less employment at primary jobs and how we deal with that is a problem. Are more public benefices the answer? Well, I stand in favour in productive people. I have said before, you cannot make enough of it if it is free. Hence, I decry any solution that expands public services for nothing – like debt does not matter!

Pensions depend on debt being paid and jobs too. We will see how this plays out. I have a major geek side to me despite willing to fight when things get dire. I wish happy times for everyone but that is not the reality. We have lives to live and maybe we will be remembered for making the world better.

#20 Doug Rowat on 09.19.20 at 1:19 pm

#7 Prince Polo on 09.19.20 at 10:26 am

Is that the Incredible Hulk vaccine??

Because you’re reading the comments section at least in part to hear random asides…

…I met Lou Ferrigno 10 years ago at Comic Con. He was using hand sanitizer.

A man ahead of his time.

–Doug

#21 willworkforpickles on 09.19.20 at 1:25 pm

I have as much faith in bio-tech as i do most mining stocks as i do the Fed. Basically none! …except for the occasional day trade in and out when the crap runs.

#22 Ponzius Pilatus on 09.19.20 at 2:11 pm

Regarding Big Pharma, will be interesting to see how the next year will unfold.
Trump is no friend of Big Pharma and is already on the campaign trail with promises to reign in high prescription prices.
I always wonder why medications are so expensive in the States compared to the rest of the planet.
Isn’t Capitalism supposed to make things cheaper?
As for the vaccine: don’t think that they will make a killing when they roll out this thing.
If they charge too much, there will be a revolt and they probably will have to settle for distributing at cost.
It’s the patriotic thing to do.
As for the poor nations, they probably will have to give it for free, after all this is a pandemic.
If you don’t eradicate it world wide, it will always come back.
Conclusion: Don’t think there will be a pot of gold at the end of this rainbow.

#23 Dogman01 on 09.19.20 at 2:40 pm

CBC is spinning the Task Force for Recovery, as some sort of “expert panel” and the roadmap forward.
https://www.recoverytaskforce.ca/

Our Ministry of Truth is obviously laying the cover for the coming Green boondoggle.

This is what is in store for the rest of Canada soon…..
https://www.cbc.ca/news/opinion/ontario-disaster-architects-1.3884108

Yes the Task Force for Recovery = more Gerald Butts.

#24 Dave on 09.19.20 at 2:49 pm

Why cure when you can sell one pill per day for life?

#25 Free Investment Advice - Worth Every Penny! on 09.19.20 at 2:53 pm

Forget biotech, Doug.

The Second Wave is coming.

I’m gonna be dumpin’ everything into TP, literally and figuratively.

Load up before the stores sell out again, folks. 3-ply will make you richer than Bitcoin.

#26 Flop... on 09.19.20 at 2:54 pm

Was doing my due diligence on my wife’s TFSA so I can rest easy when I bill her my 2% management fee, and stumbled on this Globe and Mail article.

The two companies on the list that caught my eye were Richelieu Hardware and Finning International.

Richelieu we get stuff from when my Westside clients have too much money to spend on their house.

67% rise in stock price since the March lows.

I was in a different hardware store the other day and the clerk stated that sales are up 40 something percent this year.

Easy money is doing some good apparently.

Finning International, one of my friends just got the pink slip after 20 plus years of service, I think thousands are getting let go as they downsize.

They have health concerns, so I told my wife it’s as good a time as any to take a forced break, right now.

I am an investment hack, with worn out crayons, so I look at this type of thing for sector rotation, more than individual companies.

M46BC

“This TSX sector might be a better way to profit from the global economic recovery.”

“Mining stocks and commodity futures have become a popular trade among hedge funds looking to benefit from a China-led global economic recovery. This is certainly good news for the resource-intensive Canadian equity market, but there’s a less obvious TSX sector – capital goods – that has historically been more sensitive to global growth than commodities.”

https://www.theglobeandmail.com/investing/markets/inside-the-market/article-this-tsx-sector-might-be-a-better-way-to-profit-from-the-global/

#27 TurnerNation on 09.19.20 at 3:14 pm

Had a scary thought today. If we are indeed as herd animals to our global rulers,
– To control our feeding (industrial food swill)
– Our Breeding (weddings are banned in my prefecture by the local Taliban-inspired leaders)
– And our Movements (get ready for your COV-ID pass, else you cannot travel or transact commerce)

Then what else are we? We are health care and Pension liabilities. From people I’ve met who’ve relayed personal account this virus thing is only taking out people they know with pre-existing conditions, and the elderly.
Ready that again: we are health care and pension liabilities.

Farming:Do farmers cull the sick and elderly livestock, anyone?

#28 Flop... on 09.19.20 at 3:23 pm

#178 Nonplused on 09.18.20 at 8:49 pm
#161 Flop… on 09.18.20 at 7:59 pm

Top 10 Richest Countries in the World – GDP Per Capita (2020)

I fixed it for you:

1. Qatar: $138.9K (exports oil)
2. Macao: $113.4K (exports everything else)
3. Luxembourg: $112K (banking)
4. Singapore: $105.7K (exports stuff and banking)
5. Ireland: $87K (low taxes and exports)
6. Brunei Darussalam: $85K (oil)
7. Norway: $79.6K (oil)
8. UAE: $70.4K (oil)
9. Kuwait: $67.9K (oil)
10. Switzerland: $67.6K (banking)

There you have it. If you want to be rich you have to sell oil or bank.

////////////////////

Hey Mr Folks, hope you’re well.

Still haven’t found a partner for my podcast.

Flop and Folks has a ring to it.

Whaddya think?

If no one want to buy advertising time we can just let Crowdie go on a 2 minute rant.

When I think of Macao, I think of two things.

Firstly, I think of gambling.

The second thing that comes to my mind, is this what the crow outside my window at 5:30 in the morning is try to say…

M46BC

P.S, forgot to put the link up last time for those who want to delve a little deeper to see where Canada sit in the overall scheme of things.

https://howmuch.net/articles/richest-countries-in-the-world

#29 DON on 09.19.20 at 3:42 pm

Unlike the federal prison in Pennsylvania where Mr. Shkreli currently resides.

***********************

Thanks for the info on biotech Doug.

Prison more than likely wiped that smirk off his face.

#30 Boom on 09.19.20 at 3:47 pm

Are we not talking about hockey cards prices, how governments spend money and telling people to take gubmint money at sixty?

#31 ImGonnaBeSick on 09.19.20 at 4:31 pm

Doug Ford has turned into a fatter, better looking Kathleen Wynne…

#32 aW on 09.19.20 at 4:32 pm

Pharma bro gets a bad wrap. He didn’t do anything everybody else wasn’t already doing.
He’s in prison for securities fraud. Which is fair. To his credit, nobody got ripped off. Everything made money, but Martin broke the rules to do it. No harm no foul doesn’t apply.

#33 MF on 09.19.20 at 4:38 pm

#28 Flop… on 09.19.20 at 3:23 pm

Looks like 80-90% of those countries are some form of monarchy, or dictatorship or both.

Those types of countries usually have an underbelly of some sort.

So,

Life is good for the king, not so much for everyone else. In other words, water is wet.

MF

#34 Paul on 09.19.20 at 4:45 pm

14 Drill Baby Drill on 09.19.20 at 12:02 pm
She can vaccinate me anytime.
————————————————————————————————
Ask her if she has penicillin as well. You know Justin case.

#35 Ponzius Pilatus on 09.19.20 at 5:00 pm

5. Ireland: $87K (low taxes and exports)
That’s gotta be wrong.
What are they exporting, potatoes?

#36 Nut on 09.19.20 at 5:13 pm

I hate it when all the villains mentioned are men, so in the interest of equality, I’d like to add Elizabeth Holmes

https://en.wikipedia.org/wiki/Elizabeth_Holmes#Criminal_charges

to the cited examples.

#37 MF on 09.19.20 at 5:14 pm

#194 crowdedelevatorfartz on 09.18.20 at 11:15

Lol.

Isn’t this forum Vegas online? I feel dirty after reading the comments sometimes.

Anyhow, yesterday was a sad fear fest here. The throne speech will be like all other throne speeches. We already have some gbi in the form of welfare and other benefits. I might expect a new pandemic specific temporary benefit, at the most.

All the issues identified by posters here yesterday are not specific to Canada, but the western world at large. They are issues that originated over 40 years ago, were accelerated in 2008, and now have been coming home to roost. We know them all. Low interest rates for too long, high debt levels and so on. Business taxes, often touted on here as some huge issue, have actually been falling for the past 40 years for those at the top. People need to relax.

MF

#38 Phylis on 09.19.20 at 6:09 pm

#35 Ponzius Pilatus on 09.19.20 at 5:00 pm
5. Ireland: $87K (low taxes and exports)
That’s gotta be wrong.
What are they exporting, potatoes?

Apple products, tech powerhouse and some beer.

#39 Nonplused on 09.19.20 at 6:20 pm

#35 Ponzius Pilatus on 09.19.20 at 5:00 pm
5. Ireland: $87K (low taxes and exports)
That’s gotta be wrong.
What are they exporting, potatoes?

———————————-
From Wikipedia:

“The economy of the Republic of Ireland is primarily a knowledge economy, focused on services into high-tech, life sciences, financial services and agribusiness including agrifood. Ireland is an open economy (6th on the Index of Economic Freedom), and ranks first for high-value foreign direct investment (FDI) flows.[26] In the global GDP per capita tables, Ireland ranks 5th of 187 in the IMF table and 6th of 175 in the World Bank ranking.”

So, yes, potatoes among other things.

Not everything that exports is tangible, although I suppose one could quibble about the point. Many years ago Ireland decided that they were going to revitalize their nearly dead economy through the magic of….. low taxes. It worked. Lots of companies moved operations to Ireland as a result. I suppose we could probably add Ireland to the list of potential “Galt’s Gulch” sites one could consider relocating to depending on how bad the speech is on Wednesday. I like redheads anyway.

So far we have:

Texas
Florida
Caymans
Bermuda
Montana
and now Ireland.

And maybe the Republic of Alberta after the throne speech.

#40 N on 09.19.20 at 6:22 pm

Interesting interview…

How Everyone Is WRONG About Inflation | Jeff Booth
https://www.youtube.com/watch?v=kGsp45JbvnU

#41 Nonplused on 09.19.20 at 6:39 pm

#33 MF on 09.19.20 at 4:38 pm
#28 Flop… on 09.19.20 at 3:23 pm

Looks like 80-90% of those countries are some form of monarchy, or dictatorship or both.

Those types of countries usually have an underbelly of some sort.

So,

Life is good for the king, not so much for everyone else. In other words, water is wet.

MF

——————————–

And that is different from your average communist country in what ways exactly?

All you need to do is spend 5 minutes talking with the average voter and a well educated dictator doesn’t seem like such a bad idea. A democracy depends on a well educated populace with skin in the game. Now the kids are being raised by TikTok.

#42 espressobob on 09.19.20 at 6:50 pm

Anyone can hit a home run,the trouble with this is knowing when to cash out. Sector plays are like that.

Owning the major indices eleviates all that added stress.

Wasn’t long ago some in the comment section were bullish on energy or commodity plays.

It stands to reason that a financial advisor should keep ones clients on the straight and narrow.

Outperformance over the long haul is a pipe dream.

#43 TurnerNation on 09.19.20 at 7:02 pm

When this weblog first mentioned Tic Tok I found the app odd. Not organic . Struck me as almost weaponized…for the minds’ of children – of course
Something to keep an eye on.
Now we see it being used as a political tool in the USA. Natch.
Remember there’s no more news or even innocent technology. It’s all part of the (global), control grid.
Wait until the sport stadiums in Kanada reopen as…locations. I’ve said enough.

#44 baloney Sandwitch on 09.19.20 at 7:10 pm

For folks looking to invest in biotech here are some ETF ideas from Kiplingers.
https://www.kiplinger.com/slideshow/investing/t022-s001-the-8-best-etfs-to-buy-biotech-stocks/index.html

#45 Nonplused on 09.19.20 at 7:18 pm

Well, Doug, the thing I don’t like about big pharma is that it is so highly speculative.

Here is what I mean: Sure, when a company gets a patent on a new drug that actually seems to do something, it is a licence to print money for years to come. But it takes a lot of money and a lot of trial and error to come up with such a drug. And then half the time not only is the drug not doing what it is supposed to but it is actively harming the users and a lawsuit results. The problem is that it is really hard to tell what your new-fangled chemical is going to do when people start taking it. There is a lot more trial and error in pharma then they would have you believe. Gold prospecting is more reliable.

When I was a teenager my mom thought it would be a good idea to put me on a product that was at the time called Accutane. Not only did it require regular blood tests to make sure my liver wasn’t dying, but all it did was temporarily dry up my skin. So far as I can tell it had no long term benefits. Oh and it permanently damaged my intestines, as it did to many other users. The stuff was useless crap. Very expensive useless crap. Lawsuits ensued but I never joined in because I wasn’t that deeply affected.

It’s not like computer programing where the compiler tells you “syntax error in line 10421” or something else happened besides what you were trying to do, so you hunt the error down. It’s more like “I wonder what happens if I mix hydrogen peroxide with vitamin A?” And then you start feeding it to people and see if anything happens.

Many of the great early discoveries in pharma were complete accidents. Penicillin and Aspirin come to mind. Now it is true that the process of knowledge evolves just like anything else and the happy accidents became part of our knowledge base (and we also discover what not to ingest that way too), but new pharma discoveries are pretty hit and miss.

That is one reason I am not optimistic that Trump will get his vaccine before the election. I mean, we have a lot of experience with some vaccines that work, but they don’t have one for the common cold yet. Even the flu jab is pretty hit and miss.

Knowledge is seldom acquired without a few things blowing up. That is why only NASA could take the risk of sending people to space in 1968 (well and the Soviet Union). Now Musk can do it too, but he is standing on the shoulders of giants and he blew up a bunch of stuff first too. And NASA is still using old Russian engines to power their rockets, because that design is well tested. But the Ruskies blew a bunch of them up before they got the design right too. And let’s not forget the space shuttle. 135 missions and 2 resulted in the complete loss of the vehicle and all souls onboard. If that were an airplane no way would you get me onboard.

Science often advances by accident. Well, so does everything else but let’s not tempt fate.

#46 Ponzius Pilatus on 09.19.20 at 7:23 pm

#39
when I was in Ireland 10 years ago, Ireland was still heavily supported by huge subsidies from the EU, after almost going bankrupt in 2008.
With Brexit around the corner, the EU will continue to have to prop them up, as they are losing their UK market.
Well, take your chances.
And, BTW cheap polish workers are also doing the trick.

#47 willworkforpickles on 09.19.20 at 8:12 pm

#40 N
The rate of technology creating unemployment may one day create deflation but we are not close to it with the rate of money/debt creation by governments flowing into the system with current astronomical unemployment rates.
Inflation…come Stagflation then an AI Deflation if time permits perhaps.
What comes after and I know it , I will not post here as few if any could fathom it…not insomuch being unable to understand as in not wanting too.

#48 The Woosh on 09.19.20 at 8:22 pm

Ugh…had to check again that I was reading greaterfool.ca and not Motley Fool. Today’s post belongs more on their site than this one. Sorry Doug. Just not your best work today.

#49 willworkforpickles on 09.19.20 at 8:35 pm

I would make a very poor English teacher.
Many substitute the wrong word for the actual word required related to the content of the sentence like i just did in my last post typing in the word too at the end when it should have been spelled to.
Some don’t know the difference between there their and they’re…many use the word -then- when the proper word in the context of their text is -than…too many…and on and on.
My problem at times is not in understanding the differences in their proper contexts but in jotting down a message as fast as my eyeballs and fingers can work together and not doing a proof read before hitting the submit button…an old problem of mine, I’ll have to work on that some.

#50 ChainGang on 09.19.20 at 9:08 pm

“But, if you’re patient, we believe that it’s a good place to be over the long term. Unlike the federal prison in Pennsylvania where Mr. Shkreli currently resides.”

____________________________________________

Yeah, prison REITs taking a hit, especially when uncle Joe takes the reigns in a few months …

#51 Yukon Elvis on 09.19.20 at 9:21 pm

#47 willworkforpickles on 09.19.20 at 8:12 pm
#40 N
The rate of technology creating unemployment may one day create deflation but we are not close to it with the rate of money/debt creation by governments flowing into the system with current astronomical unemployment rates.
Inflation…come Stagflation then an AI Deflation if time permits perhaps.
What comes after and I know it , I will not post here as few if any could fathom it…not insomuch being unable to understand as in not wanting too.
…………………….

Spill it. Enquiring minds want to know.

#52 crowdedelevatorfartz on 09.19.20 at 9:30 pm

@#38 MF
” The throne speech will be like all other throne speeches. We already have some gbi in the form of welfare and other benefits. I might expect a new pandemic specific temporary benefit, at the most.”

+++++
I hope you’re right.
Unfortunately I dont think Trudeau can resist if the potential for self promotion and environmental lecturing with a little politically correct “buzz words” tossed in for good measure with the younger voters.

His black face, groping, hypocritically, self righteous persona…..is wearing very , very thin.

#53 Nonplused on 09.19.20 at 9:34 pm

Here is some more interesting covid coming down the pipe. Apparently, there are some 150,000 Canadians who live full time in their RV’s, mostly retirees. Normally they head to Arizona for the winter where they can camp for free and there is a whole industry of people who come along to drain the tanks and provide water, etc. Well, they can’t go this year, and their RV’s are not meant for winter weather. Oops.

#54 DLT INC on 09.19.20 at 9:43 pm

I suspect that Ireland is on the list because they lowered their taxes and have become a tax haven for multinationals that want to save taxes and screw countries where the income is actually being earned. If you really look into it, there is actually very little real business going on in Ireland. It’s all about shuffling paper I suspect to get out of paying taxes that should be used to provide funds for education, medical etc rather than fatten the bank accounts of the super rich who seem to have no qualms about screwing everyone else.

#55 crowdedelevatorfartz on 09.19.20 at 10:14 pm

@#54 BLT with Cheese
” It’s all about shuffling paper I suspect to get out of paying taxes that should be used to provide funds for education, medical etc rather than fatten the bank accounts of the super rich who seem to have no qualms about screwing everyone else.”
++++

Ahhh yes . The evil “tax evaders”.

Perhaps people wouldnt mind paying taxes if the govts didnt urinate tax dollars away on every “social agenda” deemed relevant.
Have a crosswalk that needs a rainbow? Call the govt. Need a list for all the sexually inoffensive terms we must now use? Call the govt.
Need to retrain all employees on racism? Call the govt.

Oh and dont forget to include “free money” aka CERB, UBI etc etc etc given to prolifically spending canucks that smoke $15/pack cigarettes and stand in lineups for another tat. Who never save a dime for a rainy day……….

Yep keep raising taxes for everyone who needs anything whenever the social goal posts move to “include” another newly discovered “oppressed” group…. what could possibly go wrong?

#56 technical analysis? on 09.19.20 at 10:34 pm

the best sign yet that stocks are massively overvalued.

TulipMania part II 380+ years later.

Forget the Stock Market. The Rare-Plant Market Has Gone Bonkers.

https://www.wsj.com/articles/forget-the-stock-market-the-rare-plant-market-has-gone-bonkers-11600437284

central banks are the cause of all the financial problems the last 50+ years

#57 Butcher on 09.19.20 at 10:35 pm

Ireland is great at drinking alcohol

#58 Ronaldo on 09.19.20 at 10:35 pm

#45 Nonpulsed

”About 128,000 people die from drugs prescribed to them. This makes prescription drugs a major health risk, ranking 4th with stroke as a leading cause of death. The European Commission estimates that adverse reactions from prescription drugs cause 200,000 deaths; so together, about 328,000 patients in the U.S. and Europe die from prescription drugs each year. The FDA does not acknowledge these facts and instead gathers a small fraction of the cases.”

https://ethics.harvard.edu/blog/new-prescription-drugs-major-health-risk-few-offsetting-advantages

#59 JM on 09.19.20 at 10:42 pm

Nice one Doug, you are abosutely right. The only viable solutions to our problems are science and technology based. Everyone that disagrees should throw away their technology and smart phones and return to their local chapter of the flat earth society.

#60 Nonplused on 09.20.20 at 12:04 am

#54 DLT INC on 09.19.20 at 9:43 pm
I suspect that Ireland is on the list because they lowered their taxes and have become a tax haven for multinationals that want to save taxes and screw countries where the income is actually being earned. If you really look into it, there is actually very little real business going on in Ireland. It’s all about shuffling paper I suspect to get out of paying taxes that should be used to provide funds for education, medical etc rather than fatten the bank accounts of the super rich who seem to have no qualms about screwing everyone else.

—————————–

Millennial much?

Please remember that companies do not pay taxes with their own money, because they don’t have any, or at least not much. Any tax they have to pay gets imbedded in the price of whatever you are buying from them.

And the super rich do not keep their wealth in bank accounts, other than as necessary for meeting payroll and other expenses. They invest in productive assets. Assets that bring you all the necessities and luxuries of life at reasonable, cost efficient prices. There would be no iPhone in your pocket if Apple couldn’t build a factory in China or Ireland or wherever it is. You try and build one yourself from sand and empty Coke cans. Good luck.

#61 BillyBob on 09.20.20 at 8:27 am

#33 MF on 09.19.20 at 4:38 pm
#28 Flop… on 09.19.20 at 3:23 pm

Looks like 80-90% of those countries are some form of monarchy, or dictatorship or both.

Those types of countries usually have an underbelly of some sort.

So,

Life is good for the king, not so much for everyone else. In other words, water is wet.

MF

===============================================

Do you honestly believe the average citizen of Luxembourg, Singapore, Ireland, Norway, Switzerland isn’t doing isn’t doing as well or better than you? The naive arrogance is staggering.

And the Middle Eastern ones for all their faults have no problem attracting migrants absolutely eager for the possibility of a better life than in their home country. The expats come for the same reason they come to Canada: for a better life, to get ahead. They’re not sitting around in the Golden Horseshoe making smarmy uninformed comments. They don’t have the time. And no, they are not all unskilled migrants. I know, I was one and they welcomed my skills with open arms and paid very, very well for same.

Your comments of “the dark underbelly” are embarrassing in their foolishness and condescension. Canada absolutely has its own disgusting corruption and practices, just keep telling yourself otherwise. You think Canada isn’t moving in a dictatorial direction? lol When was the last time there was a sitting Parliament? When was the last time the Opposition actually opposed something? Oh right, pandemic, *reasons*.

You really, really need to leave your little GTA bubble once in awhile.

#62 YouKnowWho on 09.20.20 at 8:47 am

#45 Nonplused

————————

You should really listen to that Bret podcast I note above. The reasons why soft tissues like hearts, intestines, livers get hit by all these drugs is EXACTLY why he is trying to bring to attention this flawed scientific process upon which drugs were developed for many decades.

The potential for lawsuits due to what Bret highlights has increased significantly, and will continue to increase going forward if big pharma looks the other way. But as you note, with cost of drug development and qualification being so high, they can’t blow up their products, even if it is absolutely the right thing to do fo human safety.

Also relevant is the fact that these mice appear to open a whole ball of wax with cancer drugs, as in potentially sway results to drugs that won’t work in humans. And we know what a business cancer research and cancer charities are.

Chris Rock talked about this long long time ago. Ain’t no money in a cure.

https://m.youtube.com/watch?v=G7P4iFg048k

#63 David Hawke on 09.20.20 at 9:13 am

Ah, now this makes perfect sense “This not an anti-vax blog. All such future comments will be deleted. – Garth” as this is pro-BigPharma blog with discenting views verboten! :(

Please tell us you are not so thick as to confuse a post on investments in the pharma sector with a public health issue. – Garth

#64 MF on 09.20.20 at 9:39 am

1 BillyBob on 09.20.20 at 8:27 am

Oh look the guy who failed in Canada is back to make himself feel better better by trying to put those who are succeeding down with his anecdotal stories of success. Sure pal, everyone in Europe and the Mid East is living like a sheik driving a Ferrari and living in palaces.

Please.

My wife and a lot of her friends worked in a few of those countries as imported labour before coming to Canada. Conditions are brutal. 7 days a week. No labour code. Low pay. Total exploitation. People only do it for experience so they can come to places like Canada or the US. The underbelly absolutely is as disgusting as everything thinks. This all ruling class there that is corrupt to the bone and is flagrant about it.

Funny, she’s thriving here in Canada (as are most her friends) right where you failed. That says more about you than anything else. Like usual. I don’t know what else to say other than yeah, I do think I’m doing better. Stay salty though.

MF

#65 Doug Rowat on 09.20.20 at 9:43 am

#42 espressobob on 09.19.20 at 6:50 pm

Anyone can hit a home run…

It stands to reason that a financial advisor should keep ones clients on the straight and narrow.

A home run is a one-time event. We’re recommending biotechnology as a long-term holding within, of course, the context of an otherwise balanced and diversified portfolio.

And sometimes keeping clients on ‘the straight and narrow’ means encouraging them to take some risk once in a while.

–Doug

#66 NSNG on 09.20.20 at 10:31 am

A hockey player and an unemployed guy walk into a bar. Their average income is two million dollars…

#67 crowdedelevatorfartz on 09.20.20 at 10:49 am

@#64 MF
“My wife and a lot of her friends worked in a few of those countries as imported labour before coming to Canada”

+++++
Hey, hey, HEY!
No stealing my “thunder”.
Only crowdiefartz gets to toss out the anecdotes….all you other anecdotal wanna bees gotta find another bus.

Speaking of which…” A friend of mine was working in Saudi and drove past a public execution and asked the driver to stop……………”

#68 crowdedelevatorfartz on 09.20.20 at 10:55 am

@#64 MF
“Funny, she’s thriving here in Canada (as are most her friends) right where you failed. ”

++++
You’re missing the entire point of emigrating for work.
People go where the jobs and money is.
Your wife could have stay where she was and made a lower wage but she chose to seek a higher wage …. so she moved.
As has BillyBob.
And I dare say he is paying much lower taxes than in Canada…
Anecdote time!
I had a cousin that worked for the Saudi military, had to sell all his assets in Canada and live away for at least 12 months to avoid Canuck taxes. Paid huge money, US dollars, no taxes, big bonuses…… Eventually moved back , retired and bought a huge farm with hobby horses for the wife and kiddies.

#69 Flop... on 09.20.20 at 11:22 am

#61 BillyBob on 09.20.20 at 8:27 am
#33 MF on 09.19.20 at 4:38 pm
#28 Flop… on 09.19.20 at 3:23 pm

“Do you honestly believe the average citizen of Luxembourg, Singapore, Ireland, Norway, Switzerland isn’t doing isn’t doing as well or better than you? The naive arrogance.”

///////////////////////

Hey BB, I must admit I started to pen a post that had some similar style points as yours yesterday but shelved it.

I did think about the parliament shutdown and Trudeau’s recent behaviour.

Also was going to ask the other guy why he didn’t think places like Australia and Canada doesn’t have an underbelly.

I used to try and help him out with certain things but that was a long time ago, I’ve moved on, but you do you.

I’ve never been to Ireland.

I have in my possession an outdated Irish Work Visa though from the early 2000’s

After my stint working in Canada my plan was to backpack through South America for 6 to 9 months and then head back to Europe.

Met my wife, change of plans.

I had used my spare time from my U.K work visa to check out mainly Western Europe and a bit of the Middle East.

Ireland was going to be my base to go back and do Scandinavia.

I think I did alright on my first visa but when I was asked to go work on Paul Allen’s Villa in the French Riviera that threw a spanner in my original plans of using London as my travel base in Europe.

Was thinking about what I remember about my travels to Luxembourg after I mentioned it in my original post.

Only probably spent 4 days in that tiny country, mainly in Luxembourg City, but one day my wife and caught the regional bus to as far as it went to try and see as much of the lush countryside as we could.

We got off the bus and spotted a Kebab/ Shawarma place.

It was a hole in the wall type place, after ordering two meals and sitting outside, I asked my wife what she wanted to drink, and she said she was happy with the bottle of water that we always had with us.

The guy saw us eating our meals and brought out two 500ml bottles of Coke, on the house, and thanked us for making the effort to visit his town.

Does coughing up two bottles of Coke make this guy a rich citizen of Luxembourg as the list suggested.

Probably not, but that stuff never happens to me in Vancouver.

There are generous people in Canada, for sure, the largest concentration I have witnessed were way over on the other coast in Nova Scotia.

We got coastal mountains that people like to hoard their wealth behind…

M46BC

#70 mousey on 09.20.20 at 12:11 pm

#28 Flop – I have a name for your podcast, “Flop to It”.

#71 Keyboard Smasher on 09.20.20 at 12:27 pm

Martin Shkreli literally did nothing wrong and is smarter than anyone else on Bay St.

#72 Dr V on 09.20.20 at 12:54 pm

MF – so I can get a palace, a harem and a Ferrari on a $100k income?
Count me in!

#73 Sail Away on 09.20.20 at 1:41 pm

#136 Don Guillermo on 09.18.20 at 10:24 am

Sail Away – was that you?

https://www.princegeorgematters.com/local-news/sleeping-bc-driver-of-speeding-tesla-on-alberta-highway-faces-criminal-charge-rcmp-2720691

——————

Sigh… unfortunately.

I’ve upgraded from sleeping in the Tesla at campgrounds to sleeping in the Tesla while traveling. It’s magical- sort of suspended animation- set the destination, sleep for 4 hours, arrive at destination. Very similar to sailboat autopilot. Both work best with a fatalistic life philosophy.

#74 David Hawke on 09.20.20 at 2:05 pm

If it walks like a duck, quacks like a duck the chances are it is a duck or facsimile there of, EH!

#75 DLTINC on 09.20.20 at 2:44 pm

#54 DLT INC on 09.19.20 at 9:43 pm
I suspect that Ireland is on the list because they lowered their taxes and have become a tax haven for multinationals that want to save taxes and screw countries where the income is actually being earned. If you really look into it, there is actually very little real business going on in Ireland. It’s all about shuffling paper I suspect to get out of paying taxes that should be used to provide funds for education, medical etc rather than fatten the bank accounts of the super rich who seem to have no qualms about screwing everyone else.

—————————–

Millennial much?

Please remember that companies do not pay taxes with their own money, because they don’t have any, or at least not much. Any tax they have to pay gets imbedded in the price of whatever you are buying from them.

And the super rich do not keep their wealth in bank accounts, other than as necessary for meeting payroll and other expenses. They invest in productive assets. Assets that bring you all the necessities and luxuries of life at reasonable, cost efficient prices. There would be no iPhone in your pocket if Apple couldn’t build a factory in China or Ireland or wherever it is. You try and build one yourself from sand and empty Coke cans. Good luck.

While I agree that the wealth of the super rich is not just sitting in a bank account somewhere but is being used to invest in productive assets by and large I wonder if the super rich should be the ones who decide how this money is to be invested. You seem to be implying that if taxes were reduced, more money would go into the creation of productive assets. I guess that might be true but should it be the billionaires who choose the investments. How about if we democratize the market and eliminate all corporate taxes. We can just flow the income through to the shareholders who will pay the taxes. Of course, the corporations will have to pay out much of their earnings so the shareholders can pay their taxes. If this were done, with the corporate incomes flowing directly to the shareholders it would be them who would decide where to put their earnings. Some might be reinvested in the corporation they got their dividends from but a lot would probably go into other investments. Of course the corporations would have to struggle more to get their capital to expand. But is that a bad thing? Given the growing concentration in so many markets, wouldn’t it be better to have more competition?
I, for one, do not think that the market can be relied on to provide all of the services that people need and believe that in a true democracy, the people, through their governments should be making some of the investment decisions. The fact that our governmen t leaders sometimes make stupid investment decisions is another issue

#76 Westcdn on 09.21.20 at 5:45 am

Glad to see you are still alive – Sail Away – I welcome your attitude.