Standing at the beginning of 2021, how to look forward to the investment opportunities and risks of this year's health care sector? Recently, Fu Tu Information conducted an in-depth exchange with Blackrock, one of the largest asset management groups in the world, and Blackrock's natural resources research team gave an answer to the above questions.
The current valuation of health care is very attractive.
[Futu Information]: how do you view the valuation level of the health care sector?
[Blackrock Health Medical Research team]The current transaction price in the health care industry is one standard deviation lower than its long-term average, and we believe that the current valuation is a very attractive entry point for the health care industry.
In addition, we believe that health care can provide long-term growth opportunities and may provide lasting returns when economic growth slows. As we have seen in the current economic slowdown, one of the defensive drivers of the industry is the inflexibility of market demand for medical products and services, that is, there is a certain rigid demand for medical products and services at all times, which has nothing to do with stock market performance or economic growth.
Second, excited about the development of the medical industry in emerging markets in recent years
[rich Road Information]:How do you view the investment opportunities in the health care industry in emerging markets such as China and India? If you ranked the investment opportunities by region from big to small, how would you rank them?
[Blackrock Health Medical Investment and Research Group]: we are excited about the development of the medical industry in emerging markets in recent years. With the attention and investment in R & D, medical companies in emerging markets have made great progress in product innovation. For example, some contract research organizations (Contract Research Organization, CRO) and biotechnology companies in China.
India also has a good market share in many traditional pharmaceuticals. We attach more importance to the fundamentals and potential of each company.
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