Surprising Email

I usually keep what goes on with this blog separate from what I do over at RealMoney.com but I got a surprising email worthy of writing about in response to an article I wrote about big domestic pharma.

The gist of the article was that a lot of the pharma stock as bond comparisons float around may miss the mark but perhaps some of the health ETFs could be a proxy for TIPS.

I received an email that asked why not just buy VPHM? VPHM is Viropharma. It is up 600%. I don't know enough about it to have a qualified opinion about the fundamentals.

You do not need to spend a whole lot of time studying the name to see it is a high octane stock that has a high probability of feast or famine. This type of stock has a place in a diversified portfolio. Please note I am saying this type of stock not VPHM specifically as I don't know a lot about it.

The article I mentioned above questions whether an ETF could be a proxy for TIPS. Whether my idea holds any water or not, VPHM or other stocks like it have no place in the discussion.

Hopefully it is clear to you that these two types of themes are dramatically different in terms of role played in a portfolio if not to the person that emailed me.