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Health Care Weighing On Markets

TedTed
in Fund Discussions
FYI: The average stock in the S&P 500 is up 2.3% year-to-date. But the average stock in the Russell 3,000 — an index that is made up of 98% of total stock market cap in the U.S. — remains down 2.3% YTD. That’s because mid-cap and small-cap stocks haven’t quite made up the losses they experienced to start the year as much as large-caps have.
Regards,
Ted
https://www.bespokepremium.com/think-big-blog/health-care-weighing-on-markets/

Comments

  • hawleyl
    Should we be surprised about healthcare lagging? Given that Republicans have tried over sixty times to repeal the ACA without having any coherent replacement proposal, should we be surprised that the healthcare industry is uncertain about the future? Talking to our doctor, he said that healthcare providers, given the uncertainties, do not want to invest in the hospitals and clinics needed to effectively service the increased demand for medical care. I have also heard that the healthcare insurance industry is also concerned over future uncertainties.

    Does anyone want to make a prediction on the state of healthcare this time next year?
  • Mona
    hawleyl said:

    Should we be surprised about healthcare lagging? Given that Republicans have tried over sixty times to repeal the ACA without having any coherent replacement proposal, should we be surprised that the healthcare industry is uncertain about the future? Talking to our doctor, he said that healthcare providers, given the uncertainties, do not want to invest in the hospitals and clinics needed to effectively service the increased demand for medical care. I have also heard that the healthcare insurance industry is also concerned over future uncertainties.

    Does anyone want to make a prediction on the state of healthcare this time next year?


    I would like to make certain that I am understanding you correctly.

    Are you actually saying that healthcare stocks are lagging the S&P 500 because of uncertainty that the Republicans created by trying to repeal Obamacare over 60 times?



  • hawleyl
    @Mona: No, I am saying that markets do not like uncertainty and that the intentional creation of uncertainty is a warning. But it's a general warning not a prediction of some specific event, e.g. problems with Valiant. How confident are you with regard to the health sector as we approach the Presidential Nominating Conventions? Are there less-risky investment alternatives?

    There were also other warnings that healthcare might become a risky investment:

    http://www.nytimes.com/2016/02/03/business/drug-makers-calculated-price-increases-with-profit-in-mind-memos-show.html?_r=0
  • PopTartPopTart
    I think that health care will continue to be in a bear market at least until the Nov. election . Between the Republicans wanting to repeal the ACA and Hillary's war on pharmaceutical costs, populist rhetoric from both sides of the aisle will keep this sector in a bear market. Uncertainty galore here...
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