Source: Zhitong Finance "Since 1950, the S&P 500 index has risen more than 10% 21 times as of the end of May. In about 90% of these cases, the S&P 500 index rose for the rest of the year. There were only two instances of declines for the rest of the year, in 1987 (-13%) and 1986 (-0.1%)." With the rebound of the stock market, the old adage "Sell in May and Go Away" seems to have been a bad advice once again. Last month, the S&P 500 index rose 4.8%, the best May performance since 2009. The NASDAQ 100 index rose nearly 6.2%, and the NASDAQ Composite Index rose 6.9%. Goldman Sachs FICC & Equities Trading Division said: "History doesn't really support this saying. Don't sell, leave the market (go on vacation), and enjoy the good times." The rising trend is still to be continued? If history is any guide, it may indicate that the rise of the stock market is not over yet. Looking ahead to the rest of 2024, Scott Rubner, Managing Director of the Goldman Sachs Global Markets Division and tactical expert, pointed out the following historical background for investors. Rubner stated that the S&P 500 index has risen 10.7% year-to-date, and since 1950, the S&P 500 index has risen more than 10% 21 times as of the end of May. In about 90% of these cases, the S&P 500 index rose for the rest of the year. There were only two instances of declines for the rest of the year, in 1987 (-13%) and 1986 (-0.1%). "Since 1950, the median return of the last 7 months of each year (June 1 to December 31) is 5.4%. In the aforementioned 21 cases, the average performance of the last 7 months increased to 8.1%." Rubner added. Rubner also pointed out that the NASDAQ index has risen for 16 consecutive Julys, with an average return of about 4.64%.
Author: Zhao Jinbin     

According to reports, the government led by usa President Biden is proposing a regulation that would require payment for weight loss drugs, potentially expanding access to these medications for millions of obese americans and creating a massive new medical bill for elected President Donald Trump.

It is understood that the usa medical insurance (Medicare) plan now covers the costs of medications such as Ozempic and $Novo-Nordisk A/S (NVO.US)$ Mounjaro. $Eli Lilly and Co (LLY.US)$ According to the White House, this new regulation will enable approximately 3.4 million usa seniors participating in Medicare and 4 million adults in the Medicaid program targeted at the poor to access weight loss treatments.

According to a White House official, the proposal will reduce the out-of-pocket costs for medications priced at $1,000 monthly by up to 95%. Medicare provides insurance for about 52 million elderly Americans and currently does not cover expenses for obesity-related medications such as Wegovy and Zepbound. Only 13 states' Medicaid programs cover these major weight loss drugs.

This move represents a significant victory for pharmaceutical companies Novo-Nordisk A/S and Eli Lilly and Co, which have just overcome a situation in which drug shortages limited access to brand-name medications over the past two years. According to relevant analysts, the thriving injectable weight loss drug market is expected to reach $130 billion by 2030, with both companies competing to persuade insurance companies to cover these drugs.

Boosted by this, in pre-market trading on Tuesday, the stock price of novo-nordisk a/s rose by about 2%, while eli lilly and co increased by over 4%.

It is reported that the proposal still needs to go through formal rule-making procedures and presents a challenge to the government led by incoming President Trump, who has made reducing government spending a key goal. If this regulation takes effect, any future efforts to control costs by reducing drug subsidies will be highly unpopular.

Patients and doctors have also been advocating for broader access to pharmaceuticals, and efforts to eliminate Medicare coverage restrictions have been bolstered in Congress. However, industry observers and analysts expect that changes will not occur until next year at the earliest.

Covering these drugs at the current prices is not cheap. According to an analysis released by the usa Congressional Budget Office last month, expanding Medicare coverage for these drugs could cost $35 billion over nine years.

However, the usa Congressional Budget Office also indicated that the active ingredient in novo-nordisk a/s's Wegovy, Ozempic, and Rybelsus, semaglutide, is expected to be included in government price negotiations by 2025 under the Inflation Reduction Act, which may help reduce costs.

White House officials stated that the proposed rules for weight loss drugs will take effect alongside plans to reduce pharmaceutical costs through price negotiations.

Meanwhile, novo-nordisk a/s and eli lilly and co have been conducting research to demonstrate that this injectable medication has health benefits beyond weight loss, which is part of their efforts to expand insurance coverage. In March of this year, large insurance companies began covering novo-nordisk a/s's Wegovy for some Medicare beneficiaries with heart disease, opening the door for more people to access this drug.

Eli lilly and co launched a cheaper single-use Zepbond vial in August, partly to provide a way for Medicare beneficiaries to access the drug.

Editor/Jeffy