AI Cycle Shifts to Healthcare as 5% Yields Should Make Investors Wary

An absolute value invesor looks at the risk free rate available in US treasuries, and uses that as a true north to price risk. With US treasuries yielding more than 5%, that means the hurdle to own risk is far greater than a 5% annual return.

This week, Moderna and Merck made an exciting annoucement, showing breakthrough results in treating cancer in a novel way. Though this study has been in the works for years, some participants are expecting further scientific accerlation as these companies implement AI.

What didn't work?

Independent Power Producers suffered this week on a series of announcements from goverors in Texas and Pennsylvania, making it much more difficult for data center construction.

On the Hunting Trail for Value

With my portfolio as well as its benchmark index, the Russell Mid Cap Value making YTD highs this week, the urgency to replace fully valued companies with more compelling opportunities is rising.

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