Fasten seatbelt for pre-election rollercoaster
In September 2020 the MSCI World Healthcare Net Return (NR) Index returned -1.4%. The MSCI World NR Index decreased by -3.5%. Healthcare extended its outperformance over global equities to 4.6% year-to-date. Over the month, global equities traded choppy. Besides COVID-19 newsflow, the approaching US elections brought some additional volatility to markets. The Healthcare sector, being one of the most politically sensitive sectors, with lot of debates around drug pricing and the Affordable Care Act (ACA), is not new to such trading behaviour before of US elections (see “In the spotlight” on next page).
Rarely are health inequalities more apparent than when walking around San Francisco during the J.P. Morgan Healthcare Conference. In our chart of the month, Raphael Oesch (Portfolio Manager), takes a look at the statistics and discusses some of the reasons behind the figures.
We recently attended the 41st J.P. Morgan Healthcare Conference in San Francisco, which took place from January 9th to January 12th 2023. Our overall conclusion from the conference is that the industry remains in good shape. The key themes that emerged during the week from a devices and services perspective were, the rise of value-based care and innovation & digitalisation. However, it also became clear that the macroeconomic environment is still the dominant force behind (sub) sector performance.
Day after day currently feels like a roller coaster ride, going up because of better than hoped for CPI numbers, down because of looming recession fears, and back up because of a less hawkish FED speech. Are we there yet? What do you think?