The US transport sector and the biotech sector are two extremes of the US market
John Robertson
PortfolioDirect
The US transport sector and the biotech sector are two extremes of the US market. The Dow Jones Transportation Average (the white line) tends to be more in tune with the US economy than the NASDAQ biotechnology index (the green line). The correction in US biotech prices has raised concerns that the markets as a whole may be faltering. Labour demand and business investment are the two noticeable weak points but, on the other side of the ledger, corporate profitability is strong. Biotech prices have been behaving much as they did around 2000, deviating from the underlying economic performance and making them far more vulnerable to a share price correction. At the close of last week, the most overextended part of the market was correcting. What happens to the transport index may be a far more important indicator of a change in market direction.
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John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business strategist and investment market professional for over 30 years after starting his career as a Commonwealth Treasury economist in Canberra. Since being Australia's top-rated commodities analyst and chief economist at one of Australia' leading stockbroking firms, he has advised companies across the mining, consumer products, IT and biotech sectors on their equity market relations. He leads the firm's investment evaluation and security structuring activities on behalf of the Australian Small Scale Offerings Board (ASSOB), the world's first equity 'crowdfunding' investment platform. John Robertson discusses the interaction of mining and investment markets in his weekly 'From the Capital' column in Mining Journal.
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John Robertson
PortfolioDirect
John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...
Expertise
No areas of expertise
John Robertson
PortfolioDirect
John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...
Expertise
No areas of expertise
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