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Below is an excerpt from a complimentary research note by our Healthcare Team of Tom Tobin, William McMahon, and Justin Venneri. If you are interested for more Healthcare research, check out our Sector Pro Product Health Care Pro. Click HERE to learn more. |
"The 'garbage trade' is back," was the big takeaway from The Call this morning as Keith hit on his signals reflecting #Quad2 factor exposure; rates, growth, small cap as we get further into the Delta Variant retreat.
For Healthcare, data detailing hospital and ICU occupancy, as well as nurse shortages, shows how co-mingling Macro Quad 2 with COVID is a little more direct than waiting for the broader economy.
The Delta Variant wave crowded out elective procedure volume as happened with previous waves, and as the Delta Variant eases, the uptick in non-COVID volume is already underway.
In New York State (65% of hospital beds are in NYC) there was not much of an impact from Delta Variant although it put a lid on an improving trend.
Nationally, the bottom was set the first week of September and in Florida, where Delta Variant hit first, the bottom was mid August. In both cases, the slope of the recovery has been steep.
This should be good for our Position Monitor longs that have been on the opposite side of Macro #Quad3 since February.
