Dan and Corey kick off the show by discussing both bubbles and "anti-bubble" stocks. Dan
mentions how the S&P 500 Index's cyclically adjusted price-to-earnings ratio, with data
going back to 1871, is currently in the top 1%. He even believes this is the biggest mega-
bubble in all of recorded history. (0:40)
Next, Porter & Co. analyst Erez Kalir joins the conversation and shares his financial
philosophy. He talks about investing legends who have influenced his investing style, the
importance of avoiding labels, and how successful investing is similar to using a Swiss Army
knife. Plus, Erez explains the yin and yang of macroeconomics versus security-specific
fundamentals and how there are extreme periods where one can entirely dominate the
other. (12:54)
After, Erez goes into detail about biotech - the sector's history in the stock market, how it's
shaped by interest rates, and how you can find companies trading at an extreme discount
with negative enterprise value. He argues that not being able to time the markets is merely
a myth, and he shares the seven factors he uses to evaluate whether a biotech stock is
worth buying. (21:50)
Lastly, Erez explains why the conditions are right for biotech stocks today. He covers the
sector being hated and how this gives savvy investors a chance to break away from the herd and profit. (38:31)