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Healthcare Stocks Outlook 2025: Should You Invest? · Earn Your Leisure

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  Speaker 2: It's been a very rocky road so far for healthcare stocks,
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  Speaker 2: so do you think that the sector will perform better
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  Speaker 2: next year? We can talk about the teriffs in phases.
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  Speaker 2: I know that's overseas pharmaceuticals is one of the things
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  Speaker 2: that Trump put tariffs on, so I believe it's fifty
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  Speaker 2: on overseas pharmaceutical one hundred hundred, one hundred percent of
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  Speaker 2: overseas pharmaceutical and then of course the Olympic lawsuit, so
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  Speaker 2: there's been a lot of hot profile things that have
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  Speaker 2: hurt healthcare stocks. Don't talk about Eli Lily a lot,
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  Speaker 2: but uh yeah, what's the what's the forward projection for
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  Speaker 2: healthcare stocks?
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  Speaker 3: I think the healthcare sector will be okay, but one
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  Speaker 3: of the biggest mistakes was the sector trying to price
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  Speaker 3: in healthcare returns to match tech returns. So if you
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  Speaker 3: look even Atli Lily from twenty twenty one, which is
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  Speaker 3: at two oh one seventy eight, it ballooned up to
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  Speaker 3: nine seventy two fifty three.
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  Speaker 4: I love Lily dearly. I think it's one of the
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  Speaker 4: most important companies in.
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  Speaker 3: Healthcare, but if I had to ask you, just okay,
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  Speaker 3: is it more important than the video, Microsoft and Meta?
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  Speaker 3: The price gaps became too wide, and I think they
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  Speaker 3: began to adjust to prices where they should be.
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  Speaker 4: Novos had their issues.
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  Speaker 3: We've always talked about it investing into stocks that are
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  Speaker 3: domestic and not international first.
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  Speaker 4: So I think as a result, the sector will be fine.
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  Speaker 3: But if you're looking for high price returns, the only
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  Speaker 3: places you really can turn to are bitcoin, which is
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  Speaker 3: a tech, and then tech sectors and maybe some energy
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  Speaker 3: trow We can talk about Apple loving later, but I
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  Speaker 3: think all in all, even with like United Healthcare, the
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  Speaker 3: margin structures are dramatically different than a tech company. So
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  Speaker 3: I think it's a mistake at times to try and
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  Speaker 3: get the same kind of returns that that sector.
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  Speaker 4: Normally does not give.
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  Speaker 3: Well, next year be a little bit better, yes, but
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  Speaker 3: I don't think you should expect thirty five to forty
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  Speaker 3: five percent return and healthcare at all.
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  Speaker 1: Yeah, I don't think you should ever expect that type
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  Speaker 1: of return. If you're in the right place at the
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  Speaker 1: right time, it can happen. Healthcare is interesting. I think
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  Speaker 1: it's kind of one of these things where you have
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  Speaker 1: to see a breakthrough and it has to be something
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  Speaker 1: that has strong right, it has to be something with
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  Speaker 1: strong policy behind it. There's a lot of different variations
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  Speaker 1: of factors that go into making a healthcare stop something
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  Speaker 1: that is worth investing in.
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  Speaker 4: The interesting part is that.
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  Speaker 1: AI is going to disrupt health care, and so there
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  Speaker 1: could be right it could help it at scale, and
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  Speaker 1: so we could see innovations in biotech. I think we're
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  Speaker 1: not We're not far from that, right. Like I talked
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  Speaker 1: about this yesterday where Latinet was saying that ten years ago,
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  Speaker 1: every company on the stock market is a tech company
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  Speaker 1: because it needs a tech component.
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  Speaker 4: Yep.
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  Speaker 1: And last week he said every company is going to
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  Speaker 1: be an AI company because it has to have an
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  Speaker 1: AI component, and healthcare is not excluded from that. So
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  Speaker 1: innovation will happen how fast? I think it can happen quickly,
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  Speaker 1: And if you look at what this administration, especially when
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  Speaker 1: when you talk about tariffs, and that's even an interesting
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  Speaker 1: proposition in itself, right, Like the tariffs only go into
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  Speaker 1: effect at one hundred percent if you're not building a
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  Speaker 1: plant inside of the United States, and so that's like,
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  Speaker 1: I mean, you're trying to incentivize people to build infrastructure
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  Speaker 1: here from the pharmacide. But if they do, then there
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  Speaker 1: are no tariffs, right for those companies. I think you
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  Speaker 1: focus on if you're investing in healthcare. I think you're
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  Speaker 1: focusing on the American companies that have been leading, starting
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  Speaker 1: with Lily Johnson and Johnson. I think the best thing
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  Speaker 1: to do, right, and we talked about it last week,
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  Speaker 1: is go look up these these healthcare ETFs and see
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  Speaker 1: what the allocation. Yeah, right, if we look at the Spiderfund XLV,
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  Speaker 1: Lily Johnson and Johnson, ABBV, United Health, ADVOD, MERK I
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  Speaker 1: used to talk about Thermo official all the time during
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  Speaker 1: the pandemic. We're talking about how we're going to get
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  Speaker 1: vaccines and that business is going out the window. Right.
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  Speaker 1: We talked about what happened. What's happened to Mark you
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  Speaker 1: can see as well. Yeah, American companies. If that is
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  Speaker 1: what the administration is leaning towards. To me, like I said,
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  Speaker 1: you have to have strong policy behind you, I would
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  Speaker 1: keep an eye on the top five in XLV uh
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  Speaker 1: and and put on my watch list. I definitely any Striker.
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  Speaker 1: I think we can put Striker in there, right, Yeah,
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  Speaker 1: that's always being of my favorites in terms of healthcare,
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  Speaker 1: Lily for sure. But keep them on your watch list, Lily.
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  Speaker 1: Obviously it will be the leader. And that has a
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  Speaker 1: lot to do with not just the the weight loss drugs,
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  Speaker 1: I mean their entire portfolio. But be mindful of the
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  Speaker 1: ones that are getting policy behind you.
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  Speaker 3: The only three I like in the space. You know, Lily,
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  Speaker 3: of course, ABBV and Striker. You're not You're not a
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  Speaker 3: healthcare until I get a new CEO and this trial
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  Speaker 3: is over with.
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  Speaker 4: Oh that's trial.
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  Speaker 1: Yeah, yeah, that's right, Yeah.
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  Speaker 4: Yeah, rabbit hole, you know.
• 6:02
  Speaker 3: You trying to get canceled this weekend or no, we
• 6:04
  Speaker 3: go deep down the rabbit hole and wrap it up.
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  Speaker 3: Got you, Okay, I'm always down to get canceled. Hello,
• 6:12
  Speaker 3: when you invest well investment in Vesco?
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  Speaker 2: M hm, you're not getting canceled.
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  Speaker 4: What are you doing? We can crash out day whenever
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  Speaker 4: you want to.
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  Speaker 2: I'm always down for a crash out, She said, what
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  Speaker 2: about CVS.
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  Speaker 1: I've spoken highly about CVS, and if you've invested in CVS,
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  Speaker 1: you've so great returns on that as well.
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  Speaker 4: I like CVS too.
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  Speaker 2: So for people that you know. Obviously, healthcare is the
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  Speaker 2: number one expenditure of the United States government, essentially the
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  Speaker 2: biggest industry in the world. Should people have healthcare as
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  Speaker 2: part of their portfolio?
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  Speaker 4: Yeah, only literally, abbv Instrucker.
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  Speaker 3: The other part that's unfortunate is that we spend all
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  Speaker 3: this money on healthcare, but we are one of the
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  Speaker 3: sicker major countries in the world, so it's not for
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  Speaker 3: our benefit per se.
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  Speaker 4: Do I think there's great leadership Lily, yes, Abbv Yes.
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  Speaker 3: Striker, Yes, I think even United Healthcare has a chance
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  Speaker 3: to turn itself around. But the mistake was because at
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  Speaker 3: one point when Novo was taken off, The thought was
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  Speaker 3: what if we can get healthcare returns to look like tech.
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  Speaker 3: And that's when you started putting our drugs and overqualifying
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  Speaker 3: them and overstating with the benefits who could be we're
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  Speaker 3: out looking at the.
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  Speaker 4: Risk and that destroyed Novo's business.
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  Speaker 3: So exposure is great for sure, but those are the
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  Speaker 3: freak three that I will leave into ernest.
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