Just sharing some thoughts and opening discussion as I've recently closed my position in VHT. My old reasoning for sticking out healthcare was due to the large, aging demographic in the US, of course this was back when I knew less about stocks and what drives their appreciation.
The way I see it, the nationalized healthcare debate isn't going away. And basically any and every solution, from Republicans or Democrats, is going to result in some form of price controls and nationalization of this sector, which means less profits for Big Pharma, hospitals/physicians, basically anyone other than maybe insurers. Even in a global sense, the majority of profits are driven by the US and its objectively price pumped, skewed revenue machine. I'm right-leaning but I don't see any way around it, it's a bastard machine that extorts due to a horrible mix of subsidies, middlemen/admins, odd negotiating practices and price inflation, the end result is good for Big Health's profit margins but bad for most anyone else. So this is going to change in some capacity and ultimately probably lead to mass nationalization.
From that, I don't think there's any where to go but underperforming the market for the next 10 and 20. Thoughts? I'm not an expert so I don't have the precise details on how any potential changes will affect bottom lines but I did enough cursory research to realize the American system is profit bloated and only stands to lose in the event of essentially any health reform.
Submitted April 19, 2019 at 12:07PM by MackMizzo http://bit.ly/2Xq9qXJ
