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Health care stocks can be purely defensive play in an environment of rising interest rates and economic uncertainty.
The healthcare sector is currently expanding and offering long-term success stories given the innovations at hand, new approvals falling in place with relaxed norms and prevailing positive trends globally.
While the defensive and diverse nature of the sector governs the momentum, one also needs to look at the challenges that are mainly associated with the government regulatory changes, increased competition, safety concerns, outcome of research trials, and
The growth in aging population, people living longer with chronic disease, obesity and diabetes epidemics, technological advancements, the global reach of disease, personalized medicine, among others are the demand drivers.
Normal business environment after elevated demand induced by the Covid-19 pandemic can restrict the growth prospects. The sector can also be impacted by supply chain shortage, economic recession, fluctuating exchange rate movements, among others.