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Global Equity
Inflation, Innovation, and Our Outlook for Health Care Stocks
April 11 2022Key Insights
- Our longer-term outlook for the health care sector remains positive, but we expect equity markets to remain volatile in the near term.
- Aging populations, increasing demand for clinical procedures, and advancements in research tools and increasing investment capital are driving innovation.
- Higher inflation could pressure margins, while higher interest rates could dampen merger and acquisition activity, leading to periods of short-term weakness in certain areas of health care.
Important Information
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This material is provided for informational purposes only and is not intended to be investment advice or a recommendation to take any particular investment action.
The views contained herein are those of the authors as of February 2022 and are subject to change without notice; these views may differ from those of other T. Rowe Price associates.
The fund is subject to market risk, as well as risks associated with unfavorable currency exchange rates and political economic uncertainty abroad. Due to the fund’s concentration in health sciences companies, its share price will be more volatile than that of more diversified funds. Further, these firms are often dependent on government funding and regulation and are vulnerable to product liability lawsuits and competition from low-cost generic products.
This information is not intended to reflect a current or past recommendation concerning investments, investment strategies, or account types, advice of any kind, or a solicitation of an offer to buy or sell any securities or investment services. The opinions and commentary provided do not take into account the investment objectives or financial situation of any particular investor or class of investor. Please consider your own circumstances before making an investment decision.
Information contained herein is based upon sources we consider to be reliable; we do not, however, guarantee its accuracy. Actual future outcomes may differ materially from any forward-looking statements made.
Past performance is not a reliable indicator of future performance. All investments are subject to market risk, including the possible loss of principal. All charts and tables are shown for illustrative purposes only.
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