- Healthcare spending is expected to grow at 5.8% per annum, or around 4% in recession time.
- The healthcare index is as equally valued as the S&P 500; global healthcare is cheaper.
- Government involvement and budget limits are the risks, but the risk reward ratio is one of the best in the market.
Yesterday we talked about how the market and the economy are sending mixed signals and look fragile which results in increased risks for low expected returns. One way to be defensive but still grasp the upside is to invest in healthcare stocks. In this article we are going to elaborate on the rationale for investing in healthcare and discuss diversified investing possibilities and risks. More →