Morning Report Monday 14 April 2014
Where will the Healthcare profit taking create opportunities?
Recent trading sessions have seen an almost 8% correction in the NASADAQ which has flowed over to other outperforming sectors that are trading on large valuations. Over recent years, the healthcare has been a stalwart performer, with CSL up over 270% since 2009 and Ramsey Healthcare (RHC) up over 300% since 2008. The economic fundamentals are very simple, Australia is an ageing population and this creates numerous opportunities. However, a stock may be an excellent company in the perfect space, BUT the price you pay for the shares remains very important, especially in the lower yielding sectors like healthcare. I am very keen on the healthcare sector but cautious on valuations as investors are confidently invested so where will the marginal buyers come from:
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