MFOHome About Commentary Discussions Funds The Best Resources Support Us!

Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

Sign In Register

Categories

In this Discussion

Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

    Support MFO

  • Donate through PayPal

Okay, I'll be the first to start the equity sell-off

catch22catch22
edited November 2012 in Fund Discussions
Okay, I'll be the first to start the equity sell-off.
Well, at least this is the running joke among some friends. When I might buy or sell equities; that the market is going to go against me; and the friends consider it may be time to reduce some holdings.:)

Investments being related to both perception and reality; causes some or many of we students of investing to attempt to determine the where and when for our monies to obtain the best performance related to our own risk and reward bucket(s).

So, now again, our house is looking at the health care area for some equity exposure. 'Course, this would likely mean an equity sell-off of 10-30% between now and February of 2013; just to give this house a good face slap for no other reason.:)

As to perception and reality. The below (not totally inclusive of all health care related funds by any means) chart of 4 health care related funds provides some clues, in my opinion, for both perception and reality.
NOTE: one may place the computer cursor upon any of the chart lines in the graph to find the date and values.

Observations: Near June 28 finds upward moves in healthcare sectors. This is when the Supreme Court upheld the 2010 healthcare law. Near October 4 is when Mr. Obama appeared to be having a nap during the first debate with Mr. Romney. In my opinion, this is when the first perception took place that Mr.Romney could indeed win the election and this put pressure on the health care sector; as part of the Republican platform was to "rollback" the healthcare law. Why do this two time periods matter? Provisions in the heathcare law will continue to provide better profit margins in many health related sectors; especially that the healthcare law appears to remain intact.

A small sampling of Health Care related funds

Lastly, we will look again at the housing and construction funds; as there is (in theory) no impact from which political party fiddles that will offset monies being spent in this area for rebuilding in the east and perhaps a tepid and continued expanding spending to "fix" properties already owned by for primary housing and rentals.

I must depart at this time for an appointment; but will check back and perhaps add a few more thoughts.

May the force be with us...................

Regards,
Catch

Comments

Sign In or Register to comment.