The path forward for the healthcare industry and related stocks is a murky one that could be significantly affected by results of the 2020 elections.
But Hedgeye Healthcare analyst Tom Tobin says that murky future can be “wildly exciting,” thanks to rapidly changing technology in the sector and the pressure on both sides of the political aisle to control or deflate prices.
“Beginning in 1968 with the invention of Medicare, we’ve been on an accelerating and disproportionate inflationary trend [in] healthcare versus everything else,” Tobin explains in the clip above.
“What we’re heading into – and what we’ve been in since probably 2002 – is slowing unit volume and lower margins. We’ve reached the limit of what an individual, an employer and what the government can pay. We now have healthcare IT and all of these tools at our disposal. It’s going to be a slow, then rapid deflationary or disinflationary environment.”
Watch the full clip above for more.