Profitable and brimming with potential - The reasoning for considering investment in this industry
Heads Up! The Healthcare Sector: A Golden Ticket?
Stuck in a rut, the healthcare sector has left investors feeling discouraged after years of lackluster performance on the stock market. In the States, many stocks not only lagged behind the index but also posted losses. The gloomy picture isn't just limited to the US; globally, the healthcare sector's performance is somewhat subpar, though not as drastic. For instance, the Xtrackers MSCI World Health Care UCITS ETF (WKN: A113FD) has gained a mere 7.2 percent over the past three years, in contrast to a normal MSCI World's 12.5 percent.
But could this misfortune be a blessing in disguise for the audacious investors out there? Asad Haider, head of healthcare research at Goldman Sachs, sure thinks so. In an interview with Barrons, he outlined three conditions that could set the stage for the healthcare sector's recovery:
- U.S. recession recovery and enhancement of the healthcare system.
- An improvement in political stability, specifically regarding the current government.
- Fewer negative earnings revisions from companies.
Haider believes these factors, combined with the sector's low valuation, could make for a lucrative investment opportunity.
Dive In and Invest
If the prospect piques your interest, you might want to consider these ETFs to diversify your portfolio:
- Xtrackers MSCI World Health Care UCITS ETF (WKN: A113FD)
- iShares Healthcare Innovation UCITS ETF (WKN: A2ANH2)
- Xtrackers MSCI Global SDG 3 Good Health UCITS ETF (WKN: DBX0SM)
Worth Reading:
- Beware! Deutsche Bank Issues a 50-Year Warning: Will Trump Crash the Stock Markets?
- Simplicity and Genius: Secure High Yields Annually with This Global ETF
- With Asad Haider suggesting that the healthcare sector could recover, some investors might find it prudent to delve into this sector, particularly through ETFs like the Xtrackers MSCI World Health Care UCITS ETF (WKN: A113FD).
- As the healthcare sector's potential recovery may offer investment opportunities, managing one's finance wisely, including diversifying the portfolio, becomes essential, as demonstrated by the selection of various ETFs such as Xtrackers MSCI World Health Care UCITS ETF (WKN: A113FD).
