Name: Here’s Why Biotech Stocks Are On a Tear
Uploaded: 2017-12-06
Duration: 5 min 31 s
Description: And may continue to be for some time, according to our experts.

And David, you're sort of taking the opposite 35, 000- foot view where you're looking at a lot of assets under your purview. Devaluations in any of those particular categories, were you right now or were you advising clients to pivot out of one and into another? One sector that we like a lot today right now is, Healthcare. And I would really say sorta non- pharma healthcare. Mm- hm. So you look at that sector, you're basically getting companies basically trying to get a market mouthful with probably one and a half to two times the growth rate of the market. And again, relative to the defensive sectors, cuz I think [ UNKNOWN ] is right. We're sort of probably later in the cycle. I don't know if we're gonna have a correction 18, but we're sort of later in the cycle today. I think it makes sense to be a little bit defensive in that time. Where we are in the cycle. I think you know relative to staples where evaluations are kind of high. And [ UNKNOWN ] you have more secular risks. Or utilities which are very, very expensive. I think healthcare is a really good place to be for defensively position with good earnings growth Less secular risk. Are demographics driving that? Is that in part a play on just an aging population that needs to consume more healthcare? It would be demographics, also emerging markets. You think about something like the life science tool companies. They play into, they have a lot of exposure into China. And you think of what's driving China's growth. What are sort of the secular drivers of China. Healthcare. Food safety, water quality, these are things that all these life sciences companies sell into. So they're growing from more bioproduction. They're growing from more emerging market growth as well. So life signs, tools companies that's what's an example? [ UNKNOWN ] per se or a thermo [ UNKNOWN ] I see, I think of those tools as being a sort of overlap of health care. And again we talked about technology kind of covering everything. This is in some ways a tech play too. And Dan you were saying that Algiers in a lot of ways following tech developments that are in the healthcare space. And where do you see some of the things playing out. Right, so we do see a lot of opportunities in healthcare. You know, the demographics are great. The emerging markets opportunity is also strong. And we like the medtech area, the equipment area and we also play in the pharm and biotech area. I think in pharm and biotech area you got, I don't know how many years ago the human genome was sequenced. And then the development of ever faster, ever cheaper sequencing techniques. But that sets the base for research that is now coming out with new drugs. Immuno oncology is one of the big hot areas in cancer drugs. So these are drugs that understand sort of the immuno markers on our cells and try to target the drug therapies more specifically to Cancers are not all the same. There are differences among cancers, cystic fibrosis, the company Vertex has shown pretty remarkable advances there in treating that. That terrible disease. The point being, though, in a larger sense, a lot of scientific advances that happened 10, 15 years ago are now, actually emerging, from the health care industry, as the advances in drugs and therapies. It is couple with for example on the equipment side know those companies well that David mentioned but we like for example Alumina which is one of the genetic sequencing companies that provides the heavy horsepower to analyze Specific genetic cause and sequences for clinical and research purposes. So, I would note there's also advances that are software and automation driven a robotic surgery. So, great come into of the surgical and showing proves surgical results by. Using more and more automation software and also of course vision techniques to allow surgery to be done in that fashion. And so we see a lot of innovation in the health care sector. Mm- hm. And some of it is sort of the, I guess it's the flowering of the Of the early scientific results that were achieved and also combined with internet and cloud computing techniques. Is that, this kind of healthcare innovations and technological innovations Sivita, is that so a kind of a section of the market that drives the US economy more than some of rivals >> Sure, I mean I think that's one reason the US is have perfomed. The rest of he world over the last eight years as said, maybe it's been longer is that Tech is the biggest percentage of the benchmark in the US. BioTech basically really only exist. I mean, it's hard to find the BioTech meaningful. BioTechs talk outside of the US. So I think that one of the reasons that the US equity market has been on such a terror is that it represents what's been scarce over the last, the longest Close to the longest bull market we've seen which is growth and I mean it's kind of interesting that we've had this bull market amidst a very disappointing economic backdrop. Every year we think this is the year where the economy really recovers and yields and then it doesn't. Maybe this is the first year we've actually seen really strong indicators of economic growth, the fed has officially done. But I think that the US represents probably more of that secular kind of non cyclical growth than other areas of the world. [ BLANK_AUDIO ]

And may continue to be for some time, according to our experts.