Health Care Equipment
Overweight While the latest ISM manufacturing survey made for grim reading, there is a corner of the manufacturing landscape that excels when overall manufacturing is in retreat: health care equipment (HCE) makers (second panel, ISM shown inverted). This defensive health care sub-group is…
Overweight As a follow up to yesterday’s Insight Report where we highlighted our sanguine view on the S&P health care equipment index, a structural EM macroeconomic trend further reiterates our constructive view on the U.S. health care equipment providers. Aging population, one of the major…
Overweight This past Monday we co-authored a Special Report with our sister Geopolitical Strategy service gauging the odds of “Medicare For All” becoming law. Our analysis showed that the odds of universal health care legislation being enacted in the U.S. by 2022 are about 10%-15%. As a result,…
Equipping The World’s Hospitals (Part 2…
Equipping The World’s Hospitals (Part 1…
Highlights The odds of universal health care legislation being enacted in the U.S. by 2022 are about 10%-15%. Former Vice President Joe Biden is the most likely Democratic candidate in 2020, but the alternative is most likely a progressive candidate seeking universal health care. Trump is…
Neutral The S&P health care equipment (HCE) index has caught a bid recently, reflecting the sector's strong profit momentum, following nearly a decade of decline (second panel). We fear, however, that investors have become somewhat overzealous as the run up in stock prices has dramatically…
Neutral At the beginning of the summer, we downgraded the S&P health care equipment (HCE) index to neutral for three main reasons: valuations had shot higher, demand had downshifted and pricing had cooled substantially. Relative valuations have since fallen back (top panel), but the…
We are making room for the financials sector upgrade by trimming the health care sector to neutral. As discussed in recent weeks, a modest shift away from a defensive to a more balanced portfolio has been on our radar. At the beginning of the year we added the S&P health care equipment (HCE…
Highlights Portfolio Strategy Upgrade the financials sector to overweight. This year's consolidation phase is drawing to a close as inflation expectations stabilize. Lift the S&P banks index to overweight. Leading indicators of credit creation are signaling a reacceleration as the year…