This article analyzes the trends triggering investments in one such sector – the healthcare sector, which undoubtedly is one of the businesses performing considerably better than many other sectors in current market scenario.
It is increasingly getting difficult to find good market news lately. The daily headlines show a slowing economy, shaky government finances, and declining stock market. This is not a problem confined to a particular country, but a trend observed across the globe. When it comes to investing in such difficult times, though investors have no control over the financial and economic crisis, they can control their own portfolios by investing wisely in sectors, which would benefit from the trends within the economy and are least affected by the global economic slowdown. This article analyzes the trends triggering investments in one such sector – the healthcare sector, which undoubtedly is one of the businesses performing considerably better than many other sectors in current market scenario.
Investing in healthcare in difficult economy
One of the effective ways to find which industry to invest in difficult market environment is to analyze the changes taking place in the local and global economies. One can then look for those industries, which would benefit from these changes. Say for example, one of the biggest lifestyle changes observed across the world today is the ageing population and a steep increase in lifestyle disorders. Further, the average income in the developing world is rising strongly, and this looks set to continue for quite a while. Also, there is an increasing awareness amongst the people regarding health & wellness, health insurance and other health related matters. Even the most developed regions in the world are today focusing on revamping their healthcare policies.
These are the trends hardly affected by the rise and fall of market. The fact that people fall ill and need care will not be changed whether there is an economic recession or not. All this points towards one important factor i.e. irrespective of the market conditions, people would continue investing in healthcare and thus healthcare is one of the sectors along with Pharma, which is set to immensely benefit from the above mentioned trends.
Over the past three months, the healthcare sector has performed considerably better than any other industry, making it the one solid investment since the beginning of the year. This is hardly surprising given that the healthcare sector has a very interesting profile in the current uncertain market scenario. Majority of pharmaceutical companies have shown strong balance sheets of late and offer attractive yields. The industry is supported by strong R&D, innovation and constant up-gradation of technology. This has restored the ‘growing curve’ of the sector.