28/03/2024 09:40

Are healthcare stocks set to benefit from falling bond yields?

Healthcare stocks caught our attention on Wednesday after their +1.3% advance. However, they’ve been a clear laggard in 2024, advancing only +2.1%, while four other sectors have delivered double-digit gains. The potential influence of the new wonder weight loss drug, Ozempic et al., has weighed on a couple of influential ASX names, but with interest rate cuts on the horizon, we question if this underperformance will continue. Another bonus from the sector is its label as a defensive play, a comforting addition to most portfolios with global equities pushing to fresh all-time highs.

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09/02/2024 09:30

Are we still holding the right mix of healthcare stocks?

The Australian Healthcare Sector has surged ~30% since late October, and although we are bullish over the coming years, a period of consolidation is overdue, and an 8-10% pullback wouldn’t surprise  - at current levels, we aren’t looking to increase our exposure to the sector, pretty much in line with our view on the market in general. The sector has shown a strong inverse correlation to bond yields over the years, falling sharply when bonds rally/yields fall and vice versa.

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07/11/2023 09:13

Can Healthcare continue to bounce into Christmas?

The ASX Healthcare sector has been the main underperformer through 2023, falling over -10%, while the Tech Sector has advanced closer to +20%. There have been some standout laggards in this much-loved sector, with Healius (HLS) and PolyNovo (PNV) down over -30% year-to-date, while only Cochlear and Pro Medicus (PME) have managed to post gains coming into November.

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13/04/2023 09:12

How we see the Healthcare Sector after Purchasing Ramsay Healthcare (RHC)

Healthcare stocks are in the same growth basket as tech without steroid-like volatility. Over the last 5 years apart from COVID rising bond yields has been the bane of the sector leading to sharp corrections in both 2018 and late 2021. However, we believe central banks are close to a rate pivot which should be supportive of healthcare stocks.

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15/04/2021 09:23

Healthcare

Conversely the local Healthcare Sector looks constructive after a tough 18-months, so far 2021 has been one of stock / sector rotation and the healthcare space does look bullish moving forward after being lest floundering for the last year.

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16/03/2021 09:07

Is Healthcare awakening from its slumber?

MM has been looking for a recovery by the defensive sectors over recent sessions and its slowly been playing out but the big question is do we believe the likes of Healthcare will rally or simply outperform some hot value stocks that have soared in 2021.

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