Healthcare sector most likely to grow in 2021

healthcare pharmaceuticals covid-19 Max Hayden IG

5 November 2020
| By Laura Dew |
image
image
expand image

Almost three-quarters of hedge fund managers and economic experts have named healthcare and pharmaceuticals as the sector more likely to increase in value over the next 12 months.

A survey of hedge fund managers and economic experts globally found 73% expected those sectors to increase in value while 66% felt that way about the technology sector.

However, the number was lower in Australia specifically where only 60% expected healthcare to rise in value.

This was helped by the sectors’ efforts to find a COVID-19 vaccine which would be a key focus for 2021 as the world aims to stem the global pandemic. Stocks currently working on a COVID-19 vaccine trial included GlaxoSmithKline, Johnson & Johnson and Moderna while others such as Roche and Gilead Sciences were working on treatments.

As well as efforts on a COVID-19 vaccine, these companies were also likely to benefit in the long term as people would become more aware of their health via supplements and healthy lifestyles and companies would likely need to keep creating drugs as the COVID-19 virus mutated into different strains.

Max Hayden, global head of prime brokerage sales at IG, said: “The pharma industry in terms of growth opportunities will come in two parts.

“As you would expect with the development of a vaccine and related drugs around it, companies that are working on and will achieve that obviously are the ones to watch for the future. We can see those industries growing over the next months and years.”

Oil and precious metals were least expected to increase in value with just 15% and 18% of respondents, respectively, expecting to see value increases in those sectors.

Read more about:

AUTHOR

Recommended for you

 
sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

 

MARKET INSIGHTS

JOHN GILLIES

tHOSE 989 WHO ARE CEASED WILL GO ON TO LIVE A LONG AND HEALTHY LIFE JG...

9 hours ago
Chris Cornish

What a sticth-up. Looks like Labor Senator Jess Walsh follows Stephen Jones who follows what the industry super funds ...

6 hours ago
Peter Swan

This report is a blatant display of far-left factional partisanship, treating superannuation funds as state property and...

6 hours ago

ASIC has cancelled the AFS licence of a Sydney wealth firm, the fifth Sydney firm to see a cancellation since the start of the year....

2 weeks 1 day ago

More than 20 winners from the funds management industry have been crowned at this year’s awards....

1 week 1 day ago

The corporate regulator has made a suspension and a cancellation of the AFSL of two Queensland-based firms. ...

1 week 1 day ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND