Dr.Forsythinvestorsnote

I feel it is time for extreme caution in the equity market. For those of us who have been lucky enough to be overweight in AI, electric energy, precious metals, and biotech, there have been enormous gains..If you’re sitting there with huge gains over the last few months, we recommend taking some profits. There is only one thing worse than short-term capital gains, and that is the loss of those gains. In my personal account, I had massive short-term gains in precious metals, AI, and biotech, and cashed out most of my big winners. It made me sick to do it, but I noticed the biotechs were being hit as hard as the AI winners, which makes me think the same type of shareholder held both groups. Unfortunately, there is a fair amount of margin buying in retail these days. I love using a little margin at times, but now is not the time for margin. Remember, NBIS has tremendous potential, but on a valuation basis, it is extremely expensive.

Take some profits and play with the house's money. Our positioning is at our most bearish it has been in the last 2 years. We are 50% invested.

We are very impressed with the biotech story. Tremendous new game-changing products and big pharma are facing a patent cliff, which is forcing them to bid up stocks before the 3rd stage of drug testing. Immunology drugs for oncology are finding an important place in autoimmune disease treatment. There is tremendous competition in the biotech space, especially in oncology. It is important to have a wide net to help cut down the risk of an adverse result from the unpredictable FDA. I feel the FDA situation will stabilize, and I believe the administration is not impressed with some recent FDA decision-making.

Not for the faint of heart, but I believe the biotech area will outperform once the margin players liquidate. Do your due diligence and enter cautiously.

In the general portfolio, I love BA, and I think WLDN looks very interesting.