11月，特朗普提名罗伯特·肯尼迪担任美国卫生部部长，疫苗制造商和医疗保健公司的股价暴跌。Source: Wall Street See
Several weeks have passed since Trump nominated Kennedy for the position of Health Secretary, and the trend of investors withdrawing from the medical care sector has not diminished. So far this year, the performance of the Health Care Select Sector SPDR Fund compared to the s&p 500 index is approaching the worst levels seen in the past thirty years. Goldman Sachs believes that a significant economic event plus clearer related policies and an upward adjustment of corporate earnings expectations may be needed to attract investors back.
The chain reaction caused by "anti-vaccine pioneer" Kennedy's appointment as health minister is not over yet.
In November, Trump nominated Robert Kennedy as the head of the USA Department of Health, leading to a sharp drop in the stock prices of vaccine manufacturers and medical care companies.
Last Friday, Goldman Sachs analyst Asad Haider and his team pointed out that several weeks have passed, and the trend of investors withdrawing from the medical care sector has not diminished so far this year. $The Health Care Select Sector SPDR® Fund (XLV.US)$ Compared to $S&P 500 Index (.SPX.US)$ The performance is approaching the worst level in the past thirty years. Haider stated:
"Market sentiment in many sub-sectors of the medical care industry is extremely bleak, and we are receiving an increasing number of inquiries from investors who want to understand how to reverse the outflow of funds."
Haider believes that the following three conditions may need to be met to stabilize and restore the performance of medical care stocks:
1. Macro-economic shocks
Haider stated that significant economic events could potentially attract funds back into the medical care sector; however, recent economic indicators, such as this week's expected employment report and the higher-than-expected University of Michigan consumer confidence index, have not provided strong support for medical care investments.
However, in certain specific areas, such as $SPDR S&P Biotech ETF (XBI.US)$ , there is still a certain tactical risk preference for inflow of funds.
2. Relevant policies have become clearer.
Haider stated that currently, there is still a lack of a "key event" that defines the future policy direction in the medical care sector, and investors need to understand the direction of medical policies to decide whether to return to this sector.
3. Earnings expectations have been upgraded.
Haider stated that currently, the upward adjustments in profitability in the medical care sector are still insufficient, with only a few subsectors performing well, such as $Eli Lilly and Co (LLY.US)$ certain medical technology companies and distributors, therefore, medical care companies need to provide better profit forecasts to attract consumers.
Haider believes that under the above conditions not being met, the likelihood of a sustained recovery in the medical care sector is low, as the current valuation levels and dividend yields are insufficient to attract investor inflow.
Editor / jayden
