E What's Next

Today I got a promotional mail from Value Line reading” “What's next?” particularly appropriate today after yesterday's events disarray including the still buoyant stock market.

Here is a commentary from Jeremy Grantham of GMO, written of course before the events of Wednesday in Georgia, Washington D.C., and other state capitols:

“2020 matured into a fully fledged epic bubble featuring extreme overvaluation, explosive price increases, frenzied issuance, and hysterically speculative stock behavior.”

Welcome now to 2021 which features dangerous political and inflation risk and even more extreme valuation in a mere 4 days of trading. Rioters bearing confederate flags, viking helmets, and bare chests covered with fur vests took over Capitol Hill and four people were killed.

The stock market is gaining because of Biden being formally elected and because there is a clear way for him to function. But the frenzied rise in the DJIA to a new high given the political risk is scary.

We also saw the New York Stock Exchange blocking, unblocking, and now reblocking listings for 3 Chinese telephone companies and probably also blacklisting Alibaba. Plus a new more dangerous variant or mutation of the coronavirus which nullified Israel' claim to successful inoculation last week.

Pharma

*Israeli Teva made up a bit for that mishap by reporting that 2 trials of rispendone injection delayed recurrence of schizophrenia by 80% when given monthly, and by 6.25% when given every 2nd month. The drug is a standard one but the trials, including another still going on, are using an extended and controlled release technology called BEPO which TEVA licensed from MedinCell S.A. of Montpellier, France, to which it will pay fees. The 17-yr old tiny French firm also is working on a long-term injection against Covid-19 using proprietary co-polymers and a bio-compatible solvent. It trades as MEDCL in France.TEVA rose 0.315% despite it being Thursday. Then it reversed downward.

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Warning: free lunches are coming to an end. I am working with my corporate bank and Visa to bill for subscriptions which have not been paid for or renewed and to be able to deposit them directly. ...

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