FHLC News and Press, Fidelity MSCI Health Care Index From 12/07/22

Summary Expectations surrounding central bank policy, China’s gradual reopening and a lower US dollar are key to investor sentiment in the final stretch of 2022. Central banks have increased interest rates at the fastest rate on record, and there are signs that higher yields are ...

Summary Surging stocks show markets believe hopes of a soft landing by the Fed to be true. We disagree and stay underweight developed market (DM) stocks. U.S. stocks jumped and bond yields plunged after October CPI rose less than the market expected. But sticky core inflation keep...

Summary U.S. midterm elections: Win, lose or draw for markets? What sectors may benefit from a divided government. Will equity markets get the post midterm election bump? For further details see: U.S. Midterm Elections: Win, Lose Or Draw For Markets? ...

Summary Why the declines in tech on the S&P 500 may be hiding strength in other sectors from investors. The energy sector may still provide opportunities for investors. Insurers are not suffering the same challenges as other financials in the current high-rate environment....

Summary In today's issue of the 1-Minute Market Report, I examine the market bounce since the October low, and highlight the areas of the market that are leading the way higher. On Thursday, for every stock that was down, there were 26 that were up. For the first time since August...

Summary While a divided US government may look appealing, there are long-term risks amid resulting gridlock. The longest night belonged to the pollsters and pundits, whose predictions for a “red wave” did not come to fruition. Looking at historical relationships ...

Summary In the healthcare provider space, nursing expense is the largest component of salaries, wages, and benefits. Barring another disruptive COVID surge, however, we believe the market for nurses is now coming back into balance. If the reduction in contract labor expense co...

Summary Attached to the new US Inflation Reduction Act is a multipronged mandate on pharmaceutical companies to limit or lower drug prices. DNA sequencing has especially turbocharged pharmaceutical research, and the cost to use it has steadily fallen. The new law doesn’...

Summary FHLC invests in health care stocks. Health care stocks are probably now fairly valued, although they remain cyclically well positioned. However, as a recession is likely coming (even if it is a soft recession), the cyclical appeal of FHLC is weakening. I would rema...

Summary Energy sector volatility and surging oil prices have sharply boosted interest in energy trading this year. Clients can also obtain relative value, or alpha, by rotating between outperforming and underperforming sectors underlying a broad index, according to Woolman. Th...