Health Care and Your Portfolio
Special Report

Health Care and Your Portfolio

December 18, 2016

More than any other time since the Affordable Care Act was under debate a decade ago, health care has dominated headlines. The combination of a pandemic and the race for a vaccine along with the 2020 presidential election has brought news from the sector and national health care policy to the fore.

At Adviser Investments, we are proud to be long-term investors. And that means looking beyond the next quarter or the next election cycle when deciding how to invest. The health care industry accounts for 18% of our economy and its products and services are always in demand. Investors in this sector must be prepared to ride out a few rough patches, but we continue to think that a dedicated allocation to health care stocks is a wise choice over time. Here’s why.

Defense and Offense

The health care sector tends to be recession-resistant. Even when economic conditions are at their toughest, consumers continue spending on health care—if you are sick, you have to visit the doctor. Prescriptions and over-the-counter remedies remain in demand. When times are good and more people are employed (and well-insured), medical services tend to flourish—working people typically make more doctors’ visits and can afford elective procedures they otherwise might skip.

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