Currently at its cheapest level for at least 30 years because of its potential for reform, the US healthcare sector is set for a strong rebound
The US healthcare sector is currently at its cheapest level for at least 30 years - at a 20% discount to the market based on forward-looking P/Es. Historically, healthcare has traded at a premium to the market apart from a brief period in 1993/94 when the US healthcare system faced effective nationalisation under plans driven by Hillary Clinton. The main reason for the current valuation anomaly is again the potential for US healthcare reform - a top domestic priority for President Obama. This political process is now drawing to a close and there should be clarity on the proposed legislation...
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