Why Health Care Is a Strategist Favorite

The video discusses economic expansion, US equity valuations, and strategies for defensive equity positioning. It highlights the healthcare sector as a defensive investment option, emphasizing established companies over speculative biotech stocks. The potential impact of political changes on healthcare investments is considered, with a focus on the likelihood of policy changes. The video advises against holding negative yielding assets, suggesting defensive equities as a better alternative for long-term growth.

What is one reason the healthcare sector is considered defensive?

• Its earnings are stable during economic downturns.

• It is primarily composed of new startups.

• It has high volatility.

• It relies heavily on government subsidies.

Why might investors be cautious about investing in biotech stocks?

• They are primarily government-funded.

• They are dependent on FDA approvals.

• They have guaranteed high returns.

• They are less volatile than other stocks.

How might political changes impact the healthcare sector?

• They lead to immediate policy changes.

• They guarantee increased profits.

• They can create potential headwinds.

• They have no effect on the sector.

What is the recommendation regarding negative yielding assets?

• They are ideal for short-term growth.

• They offer high returns.

• They are a safe investment.

• They should be avoided.

What is a suggested strategy for long-term growth and protection?

• Relying solely on government bonds.

• Holding negative yielding assets.

• Investing in high-risk stocks.

• Focusing on defensive equities.