I’ve found investing in stocks to be a marvelous remedy for hubris, so I’m going to get off of my high-horse about my attitude toward Illumina (ILMN)–which I still think is a marvelous company–and go for a couple of more cautious trades.
In my opinion, the biotech area is finally getting to the stage where big profits are going to be made. The problem is trying to figure out which companies will be making the biggest breakthroughs. I have no way of knowing this for sure, so I’m just going to bet on the sector as a whole.
That’s why I like the iShares Nasdaq Biotechnology ETF (IBB). By the same token, I don’t have any particular insight into the field of robotics, but it doesn’t take a genius to realize that it’s a good field to be in and, again, a field where profits are just starting to take off.
The people responsible for Robo-Stox Global Robotics and Automation ETF (ROBO) are being a little greedy with their 0.65% a year fee. However, until somebody comes up with a more competitive ETF in this area, I’ll grumble a little and pay it.
Just last month, I felt like I was crying in the wilderness about 3D Systems (DDD), and now, at least for the time being, Mr. Market appears to agree with me. I have no way of predicting the future direction of this stock. I do, however, believe in the fundamentals of DDD and in the strategy that management is following.
The investments discussed are held in client accounts as of October 31, 2013. These investments may or may not be currently held in client accounts. The reader should not assume that any investments identified were or will be profitable or that any investment recommendations or investment decisions we make in the future will be profitable. Past performance is no guarantee of future results.