We attended the 35th annual J.P. Morgan Healthcare Conference 2017 from January 9th to 12th in San Francisco.
With 467 companies participating (USD 4.3tn in market cap), over 10’000 attendees and over 12’000 organized 1 on 1 meetings, the conference normally sets the tone for the healthcare investment year. Company executives were confident regarding their fundamentals. While uncertainty around the ACA repeal and replacement remains high, the US corporate tax reform could lead to earnings accretion for the sector.
The MSCI World Healthcare NR Index returned -2.7% in February, while the MSCI World NR Index rose 2.6%. During the last week of the month, many sectors took a hit because of rising 10-year Treasury rates (now at their highest levels in a year), enhancing on one hand the attractiveness of bonds vs. Equities and on the other hand propelling cyclical stocks.
Healthcare started 2021 on a very positive note, outperforming most of the other sectors (Energy, 3.0%, being the sole exception). The MSCI World Healthcare Net Return (NR) Index gained 1.1% in January 2021, while the MSCI World NR Index declined 1.0%.
The MSCI World Healthcare Net Return (NR) Index rose by 9.0% in November 2020 and the MSCI World NR Index gained 12.8%. November was the best month for global equities year-to-date (12.8%), with cyclicals outperforming defensive sectors.