We've got a big battle brewing over the drug stocks. On the one hand are people who feel that with the economy conceivably slowing -- job growth slowest in three years -- you have to be in this group.
On the other hand, there are people who feel that if the government gets involved and
starts paying for drugs, we are in a world where the drug companies no longer have control over pricing. Any time the government gets involved, we think about that speech
blasting the drug companies, and we say to ourselves, "Get out when you can."
For me, I remain on the sidelines, long only some
virtually as a placeholder for the group, a proxy if you will. I am scared to death to miss a move in the drugs -- and mind you, I don't give a darn about multiples when it comes to drug stocks, as they haven't mattered for years. But this government-as-pricing-taskmaster is anathema, so I am not very worried about missing a big move.
The tough thing about hanging back is that there are seasonal issues that make me want to buy
(we are monster
users in our house), and there are takeover reasons that make me want to be in
. I will have to content myself with BMY, which I like, literally, because it has the fewest flies on it at this moment.
Have to be impressed with the
TheStreet.com Internet Sector
index. I know that the chart says it has to fail here (at least that is my reading of it) but I am not letting my trading net (the stock I added when
The Wall Street Journal
The New York Times
wrote the Net's obituary last week) go yet.
James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At time of publication, his fund was long Bristol-Myers. His fund often buys and sells securities that are the subject of his columns, both before and after the columns are published, and the positions that his fund takes may change at any time. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Cramer's writings provide insights into the dynamics of money management and are not a solicitation for transactions. While he cannot provide investment advice or recommendations, he invites you to comment on his column at