Bearish on Healthcare

Upcoming Obamacare Disruption

Observations

Government subsidised Obamacare was great for the health industry including: health insurers, hospitals, drug companies and supporting companies.
Trump’s election will disrupt this industry.
Supporting views on a repeal/transition of Obamacare.
Whether a full repeal or modification/fix to Obamacare, my view is that this is bearish for the healthcare sector

Funds & ETFs

HealthCare Funds – Bearish view and avoid.

Tracker ETF – XLV bearish positions entered.

XLV – Healthcare select SPDR Fund

Fig. 1 – 2016-11-28 XLV Price action (Source: Stockcharts.com)

Fig. 1 shows the current price action. Since August to Nov a downtrend has formed with a 50% pull back in recent weeks to $72.
With fiscal policy ramping up, significant changes to this sector should be made in early 2017.
Target price would be the previous low of around $60.

Best,
Michael

Before proceeding to the Mypfund.com website, please note the following terms and conditions.

Mypfund.com is an information sharing website with topics affecting the personal financial statement. With fund investments, we do not provide any personal investment advice. All information is strictly for information purposes only and does not contain any advice, suggestion or view in whatsoever form by Mypfund and its affiliates. Therefore no investment decision should be made upon the information or data mentioned in this website. Some information contained here is provided/sourced by information providers or it is being re-transmitted in the ordinary course of business to you for information and reference purposes only.

Mypfund endeavours to ensure the accuracy and reliability of the information provided but does not guarantee its accuracy or reliability and accepts no liability (whether in tort or contract or otherwise) for any loss or damage arising from any inaccuracies or omission. Some of the information in this document may contain projections or other forward-looking statements regarding future events or future financial performance of countries, markets or companies. These statements are only predictions and actual events or results may differ significantly. Any opinion or estimate contained in this document is made on a general basis and is not to be relied on by the reader as advice. Mypfund reserves the right to make changes and corrections to its opinions expressed in this document at any time, without notice. Any unauthorised disclosure, use or dissemination, either whole or part, of this website is prohibited and this website or its parts are not to be reproduced, copied, made available to others without the written consent of Mypfund.

Investment involves risks and the values of investments may go up and down. Investment returns are not guaranteed. Past performance is not indicate of future performance. This material is intended for educational and sharing purposes using real live accounts and examples. It is not to persuade you into making specific investments. For funds, investors should read the relevant fund’s prospectus for further details including risk factor before making any investment decision. The contents of the website have not been review by the Hong Kong Securities and Futures Commission (SFC).

Your use of our website is governed by the Terms of Use in effect on the date this website is accessed by you.