Healthcare Sector Strong Bullish Trend Continues
Companies / Healthcare Sector Nov 30, 2009 - 04:36 PM GMT
Another week of debate and uncertainty over health care, another new high for the iShares U.S. Healthcare Providers fund (IHF).
We mentioned the incredible price strength in IHF a few weeks ago. This investment fund is an easy way to own a broad basket of companies that deal in insurance, pharmacy management, testing services, and medical equipment. The fund spiked to a one-year high this week.
This price action is the market agreeing with our colleague Rob Fannon (editor of The Phase 1 Investor). Rob says health care reform could pressure profits, but it will ultimately produce millions upon millions of new customers... most of whom could care less about the price (after all, let neighbors pay for it).
And we stand by our claim: If Washington's "free houses, cars, and health care" panderers get their way, a lot of new demand and revenue is headed toward IHF and its holdings. It will help bankrupt the country, but we'll let the grandkids worry about that.
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