Answers - Finance

In business schools, the buy-and-hold strategy is still viewed by the majority as the most viable investing strategy for the financial markets.

It is hard to change old beliefs. I often wonder

According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product

if those who teach such strategies have their own money invested according to their teachings.

"Buy-And-Hold" In The 90s

Most people invested using the buy-and-hold strategy in the 1990s, and

; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.

Examples of combination products may in

s we all know, they lost a bundle when the dot-com bubble burst and we entered the 2000-2002 bear market with losses of 50% to 80%.

Many investment professionals now admit that stock prices are

lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.

based on the beliefs of the masses. Assets of a company may play a role in the stock price, but the bulk of the price is influenced by popular opinion.

It's hard for many new market timers to

here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe

ccept the idea that prices are based on beliefs of the masses and little more.

But in the acceptance of this truth lies the path to profits.

"Buy-And-Hold" In The 70s

Have you ever talked to

d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.

Combination pro

eople who traded stocks in the 1970s? Many will tell you, "I learned my lesson a long time ago. I put my money in the markets and lost it. Never again."

In the 1970s, just about all investors u

ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc

sed a buy-and-hold strategy.

They searched for "undervalued" stocks, purchased shares, held them, and waited for them to increase in value.

Sometimes it worked, but many times it didn't. And e

easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi

en when it did work, profits weren't anything near what an active, market timer or trader can make.

The buy-and-hold strategy misleads investors. The markets don't go in one direction forever,

nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically

whether the trend is bullish or bearish.

Only by trading the ups and downs of the market can you make significant profits. If you are striving to become a profitable market timer, it is vital t

and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ

at you cast aside the buy-and-hold mindset of the long-term investor, and learn to "think" like a market timer.

The "Trading Edge"

Without a crystal ball, you can't know the future direction o

ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi

stock prices with any amount of certainty, regardless of whether you use fundamental or technical analysis.

However, once you recognize the market prices are the result of thousands of investo

ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.

Following aspects would a

rs who "believe" they know the direction prices are going to take, you have the "key" to beating the markets.

Knowing that prices are based on the beliefs of the masses is your "trading edge."

dd to the challenges in developing combination products:

Which markets to tap where the combination products can do fairly well?
Which combination prod

If you look at any long term chart of the financial markets, you will see that "most" of the time, the markets are moving up or down in trends that last many months, and sometimes years.

These

cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin

"trends" reflect the "beliefs" of all those investors. And those "beliefs" are controlled by the "emotions" of fear and greed.

While prices are rising, the majority of investors "believe" they

tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen

ill "continue" to rise.

While prices are "falling" the majority of investors "believe" they will "continue" to fall.

Because emotions are involved, you will see more investors buying near tops

t?

As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel

and pushing prices higher than anyone expected they would go.

And of course, because emotions are involved, you will also see more investors selling near bottoms, pushing prices lower than anyo

ping new procedures for reviewing their safety, efficacy and quality.

Professional from academic institutions, pharmaceutical industries, health care indust

ne expected they would go.

This has been going on since the beginning of free market trading.

Conclusion

FibTimer uses that "trading edge." We know that the "masses" will push the financial m

y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products

rkets in big up and down moves. Not all the time, but most of the time. That "trading edge" is our key to profits.

FibTimer does not try to "predict" where the market is going. We trade market

.

As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de

"trends." Those very same trends that are created by the masses of investors who are buying into rallies and selling into declines.

We also know that trends will last longer than most expect an

elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.

Companies that provide selfless information through particip

that is why we stay "with" the trend all the way.

Over time, the "knowledge" that the masses will push the markets up and down in huge trends, and trading those trends, results in huge profits

tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products

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Answers - Buy-And-Hold? It Works If You Have 40 Years Or So

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