In times of market stress, recession fears and contracting market valuations, it is important to take a step back and look at the big picture. Good to see you again.
Recession means decreasing GDP, decreasing revenues and probably decreasing earnings, however, some sectors are much more resilient than others.
Our chart of the month shows the correlation between World GDP growth and sector sales growth. This is from 1996 until 2021.
And one can see, with the exception of Financials that have been massively distorted by the Global Financial Crisis, that over the past 26 years Healthcare experienced the lowest correlation between global GDP growth- and sales growth. This number is even more impressive, when comparing it to overall World Equities, where correlation is way higher at 0.83.
While other sectors’ sales growth is simply a function of GDP growth, Healthcare has unique drivers that allow the sector to grow even during difficult market environments. The most important ones are:
If you wish to know more about our Healthcare Investment Strategies, do not hesitate to contact us.
Detecting cancer early on can make such a big difference. The good news is that cancer screening will get much easier in the future.
February was a month of twists and turns for the healthcare industry! From the ebb and flow of macro dynamics to the ups and downs of the Q4 reporting season, healthcare stocks experienced a flurry of activity. Meanwhile, the Medtech, Pharma, and Providers space saw a surge of M&A activity. More in this month’s commentary.
Did you know that every 34 seconds a person dies in the United States from cardiovascular disease? It’s the leading cause not only in the US, but also globally.