Tuesday, June 7, 2016

Bonddad Tuesday Linkfest

In the US, the median monthly price of branded cancer drugs, which are still protected by patents, was almost $8,700, compared with about $2,600 in the UK, $2,700 in Australia and $3,200 in China, according to the study, one of the largest of its kind. 

Daily Chart of PPH

Daily Chart of IBB

Investors taking refuge in defensive utilities stocks have pushed the sector to rich levels, according to Goldman Sachs Group Inc.

Analysts led by Michael Lapides note that regulated utilities now trade at a forward price-to-earnings ratio in excess of the S&P 500 based on estimated 2017 and 2018 earnings. That ratio is also elevated relative to the sector's five-year average.

"On an absolute basis, utilities still screen expensive," writes Lapides.

The outperformance of utility stocks last week stood in stark contrast to the previous three months, in which more cyclically sensitive segments of the market led the way, Bloomberg's Lu Wang highlights.

Daily Chart of the Utilities ETF

FINVIZ Table of Sector Valuations

5-Year Chart of the XLU/SPY Ratio