Whats the correlation between healthcare sector and economic cycles?
I don’t have the exact correlation data. But it’s very low. It’s almost uncorrelated. Q: So the talk of a slowdown in the US economy will have no impact on the healthcare industry? A: It matters not at all. There’s no real correlation between economic cycles and the healthcare industry. Spending on pharmaceuticals has been going up and up and up. It’s not cyclical. It doesn’t even slow down. It’s constantly up and it’s driven by demographics, ageing population and new technologies. People will spend money on their health no matter what. This is the last thing politicians will cut in bad economic times. And our view of the US economy is that a slowdown is underway but it’s very modest. The US economy is not going into recession. It will slow from 6 percent growth to maybe 4 and a half percent. It will not be below 3 percent. Inflation is under control and labour productivity is very high and strong. Q: Are you equally passionate about your other sector funds as you are with this healthc
