An Opportunity in Healthcare, the Downtrend in Commodities Continues and Bulls Look to Bolster Equities
By James Dondero | December 29, 2014
- Despite the potential for a short-term bounce in oil, we believe deflation may well be the dominate trend for 2015. Copper appears to agree, in that it has now joined oil in breaking important long term support.
- Deflation would potentially be beneficial for bonds, and yields on the 30-year and 10-year US Treasuries remain in downtrends. Also trending lower for months has been the relative performance of high yield bonds to treasuries. While this did improve last week, we have not yet seen the meaningful changes needed to give the bulls confidence.
- Several more US equity averages have now joined the S&P and NASDAQ at new highs, which is good news for the bulls. Several still have yet to decisively breakout however, making confirmation in the coming weeks very important indeed.
- Finally, while healthcare may not continue its meteoric rise in 2015, we believe the impact of a possible medical device tax repeal offers tremendous opportunity. Learn more here.
The views and opinions expressed are for informational purposes only and are subject to change at any time. This material is not a recommendation, offer or solicitation to buy or sell any securities or engage in any particular investment strategy and should not be considered specific legal, investment or tax advice. There is no guarantee that any of the forecasts will come to pass. Past performance is no guarantee of future results.