Quality Companies Within U.S. Health Care Can Endure Near-Term Worries

Democratic candidates running for the 2020 election nomination favor a universal coverage system, although views diverge as to how best to achieve it. While some advocate for a single‐payer system, others favor a combination of government‐run and private health coverage. Republicans generally oppose a single‐payer system, preferring a free market approach to health care reform with minimal government intervention. The uncertain political backdrop has hurt the health care sector in 2019 and is likely to continue as the election campaign progresses.

Putting Near‐Term Caution Into Perspective: For investors in health care, the biggest concern is the proposed single‐payer “Medicare for all” model. Democratic Senator Bernie Sanders has been a particularly vocal advocate. While his sweeping reform plans might be construed as radical, they cannot be ruled out should he ultimately win his way to the White House in November 2020.