Marcus Padley

Marcus Today

HEALTHCARE BUBBLE BURSTS? - It's been a tremendous run for healthcare. The IVF stocks listed and their bubble is bursting, Healthscope has listed, Medibank Private is listing...there's a healthcare frenzy going on. Sonic Healthcare had a bit of a profit warning I look through the top 100 charts healthcare stocks they all look like we should have bought them in hindsight but you wouldn't buy them now. I wouldn't predict the bubble bursting until it happens but SHL was down 6.6% yesterday, taking PRY with it. I can't help think the listing of Medibank might be the icing on the sector cake. Probably wrong, long term the sector has great drivers but shorter term with the market looking tired...the sector is vulnerable to a sentiment change. Stocks like COH, CSL, RMD, ANN aren't so much a problem. It's the domestic 'healthcare' sector that's been bought as a long term investment linked to aging baby boomers that is the issue. The SHL warning is a bit of a reality check the sector may have got ahead of itself. Just saying.

Marcus Padley
Marcus Today

Marcus Padley founded Marcus Today in 1998 and leads the team of analysts and market commentators that publishes a daily stock market newsletter, presents four podcasts and runs an $80m Australian equity fund. He is passionate about educating and...

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