Why Healthcare Stocks Will be the Real Winner of the US Election

Healthcare stocks' fall in value ahead of the US Election have created a value opportunity, fund managers say

Karen Kwok 26 September, 2016 | 4:24PM

A year after Democratic presidential candidate Hillary Clinton’s tweet stating her plan to target price increases for older drugs by manufacturers, healthcare stocks have underperformed the wider market.

And according to the experts, this negative sentiment will continue to drive volatility in the sector right up to the US election. But rather than lament the price fluctuations, fund managers investing in healthcare companies said this creates a buying opportunity.

 “Valuations in the sector are currently lower than anything we have seen since 2008 and in the early Nineties,” David Pinniger, fund manager of the Polar Capital Biotechnology fund said.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
International Biotechnology Ord582.03 GBP-0.68
JPM Global Equity Income C Net Inc1.56 GBP1.93
Polar Capital Biotech R Inc GBP19.05 GBP2.14
Worldwide Healthcare Ord2,830.08 GBP0.54

About Author

Karen Kwok

Karen Kwok  is a Reporter for Morningstar.co.uk

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