Dan Rasmussen & D.A. Wallach on Biotech’s Surge, China, IPOs, US Valuations & Japan | #617

The podcast explores investment strategies in biotech, China's growing role in the biotech industry, and broader market valuation concerns. It highlights the unique factors driving biotech stock performance, such as specialist fund ownership and R&D spending relative to market cap, while noting the sector's high dispersion and potential for shorting. The discussion shifts to China, emphasizing the government's biotech investments, cheaper clinical trials, and Big Pharma's increasing acquisition of Chinese molecules. The conversation concludes with a debate on US equity valuations, contrasting high CAPE ratios with implied equity risk premiums, and considers the impact of deficits and corporate behavior on long-term market performance.