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.
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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.
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