After a rough 2016, many Health Care stocks bounced back nicely in the first quarter of 2017, outpacing the broader market. President Trump and Republicans in Congress attempted to repeal and replace the Affordable Care Act but couldn’t generate enough support. The mission failed because certain conservatives refused to settle for incremental changes to the law, holding out for an overhaul that might not ever come. It is possible that the issue will be revisited, but it might not be for a while.
Certain areas of the sector have fallen out of favor recently, in our view, and we have increased our exposure there. Examples are pharmacy benefit managers, generic pharma, and drug distributors. Regardless of how legislation plays out, these companies’ products and services should be in demand, and with valuations appearing to be low the stocks are appealing.
Information contained herein was obtained from recognized statistical services and other sources believed to be reliable and we therefore cannot make any representation as to its completeness or accuracy. Any statements not of a factual nature constitute opinions which are subject to change without notice.
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