Highlights Upgrade The Health Care Sector To An Overweight: Expressed through an overweight position in Health Care Equipment and Services, and an equal weight position in Pharmaceuticals and Biotech The Sector Faces A Few Tailwinds…
Neutral The S&P health care facilities index was an exceptionally solid performer last year as investors sought safe harbor from the headwinds to global trade in wholly domestic stocks. This outperformance belied…
Neutral As a wholly domestic industry, the S&P health care facilities index is well insulated from trade tremors that have been shaking the broad market this year. It is thus understandable that the index has been rallying in 2018…
We bought the S&P health care facilities index last December after a steep post-election sell-off created a valuation and technical undershoot relative to the fundamental outlook. The doomsday concern was that President Trump would…
Highlights Portfolio Strategy A relapse in the global financials sector threatens to spill into U.S. financials as credit growth sinks. Bank equities are the most vulnerable to such a phase, given their reliance on rising interest…
We recommend buying into health care facilities share price weakness. It would take massive earnings downgrades to validate the pessimism embedded in current valuations. Given that this group is traditionally a strong U.S. dollar winner…
Highlights BCA's U.S. Equity Strategy team would like to wish our clients a healthy, happy and prosperous New Year. Portfolio Strategy The growth vs. value style bias is due for a bounce, but beyond the near run, the outlook…
We downshifted our view on the S&P health care facilities index at mid-year, because consumer spending on health care was decelerating, which favored moving into equities that paid for medical services (managed care) vs. those that…
The combination of biotech stabilization and a health care facilities plateau argues for profit taking in our long/short trade between the two groups. We had exploited the valuation mismatch because hospital profit prospects were far…
Health care facilities equities may become the odd man out in the overall health care sector bull market. While we are not concerned that hospitals will see a drop off in activity levels, slowing revenue growth may constrain incremental…