Investors Run to the Health-care Sector; Special Report by Leading Financial Web Site Penny Stock Detectives

In a recent Penny Stock Detectives article, editor Danny Esposito points out that talk of a possible recession here in the U.S. has made investor sentiment defensive.

New York, NY (prHWY.com) July 27, 2012 - In a recent Penny Stock Detectives article, editor Danny Esposito points out that talk of a possible recession here in the U.S. has made investor sentiment defensive. Esposito notes historically, the nervous investor rushes into the defensive sectors of the market, with one of the main ones being the health-care sector.
"Intuitively, this makes perfect sense. If the economy enters a recession, people will cut back on spending," comments Esposito. "However, consumers will not cut back on the medication they need and the other health-care services they require to ensure long, healthy lives."
Pharmaceutical companies tend to be shielded from a recession because medication and health-care services are seen to be as essential as electricity and water, reasons Esposito. While other sectors of the market will be sold as consumers cut back on spending, he observes investor sentiment remains positive toward pharmaceuticals in a recession due to the very nature of the products they sell.
The Penny Stock Detectives editor states, "Due to the reliability of earnings, many of the pharmaceutical and health-care companies pay dividends. Management teams within this sector are confident that even during a recession, their companies' earnings will be stable, because the products and services they offer are mostly recession-proof."
As Esposito observes, the health-care sector and the pharmaceuticals have another positive backdrop, which increases the positive investor sentiment toward them: demographics. The baby boomers, he notes, are currently entering the retirement phase.
"As an ever greater percentage of the population is reaching retirement, people are naturally going to need more health-care services and medication," Esposito explains. "This is life, and if there were some way to remain young, it would be great, but in the meantime, there are wonderful drugs and health-care services from pharmaceuticals that ensure great quality of life."
In Esposito's opinion, what investors should take note of is the extent to which other investors are flocking into the defensive sectors, like the health-care sector. Such negative investor sentiment toward a possible recession is so high that investors are not only flocking into the health-care sector, but they're sending it to new yearly highs, he reports. Many of the pharmaceutical companies are also hitting new yearly highs as a consequence, because, according to Esposito, investors don't want to lose money should a recession hit the U.S. economy.
Esposito notes there are very few places to hide if the U.S. economy enters a recession. Negative investor sentiment means investors are looking to protect their money, and one of the few places to hide is the health-care sector, which is sending pharmaceuticals to new highs, he concludes.

To see the full article and to learn more about Penny Stock Detectives, visit www.pennystockdetectives.com.

The editors of Penny Stock Detectives believe low-priced stocks, when researched properly, present investors with great opportunities to accumulate wealth and to increase the value of their investment portfolios. You can learn more about Penny Stock Detectives at www.pennystockdetectives.com.

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Tag Words: penny stock, investor sentiment, market sector, pharmaceutical

Categories: Business

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