Personal Wealth Management / Expert Commentary

Ken Fisher Explains How President Biden’s Policies Can Influence Healthcare Stocks

In recent years, the prospect of major drug pricing reform in the US has weighed on pharmaceutical and Healthcare stocks.

According to Fisher Investments’ founder, Executive Chairman and Co-Chief Investment Officer Ken Fisher, these investor concerns are likely overblown because the government doesn’t have the ability to set broad drug prices for everyone across the US without congressional approval.

Transcript

0:03
fears in the marketplace come and go
0:05
sometimes they hang around for a long
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time sometimes they're permanent ones
0:10
sometimes they're just like little
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spikes a recent one has been about
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fears that the biden administration
0:18
will dampen
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prices of drugs hurting pharmaceutical
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stocks and
0:24
from that because it's the biggest part
0:25
of the healthcare sector uh healthcare
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sector stocks
0:29
the fact is that this is a fear that's
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an overblown fear
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it's like so many other things that
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somehow we seem to have forgotten how
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our system works
0:42
the government does not actually have
0:44
the ability
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to set
0:47
pricing per se
0:48
the government can have some impacts on
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things but the biden administration
0:53
itself cannot actually set drug prices
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and drug prices of course cover a very
0:58
wide spectrum of drugs
1:00
and
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these features
1:03
really to have big ubiquitous change
1:06
have to move through
1:08
congress
1:09
and as
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you've heard me say many times before
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in many different ways about many
1:15
different things the current government
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that we have
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on topics like this
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has almost no ability to do anything
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because a topic like this to move
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through the senate would require 60
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votes and it's very very hard to get
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consensus on almost anything in the
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united states senate not very easy to
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get consensus uh on much in the house of
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representatives either actually
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so from that the impacts are likely to
1:42
be small the fear is already there and
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therefore i think this is one of many
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things that we see that has a fear
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that's bigger than the subsequent
1:52
reality will be and fear of a false
1:54
factor or big fear of a little negative
1:58
is always categorically a bullish sign
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and you should read that this way
2:03
subscribe to the fisher investment
2:05
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2:06
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2:09
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[Music]
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you

 

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