Fortune - USA (2019-12)

151

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Elizabeth Warren or Bernie Sanders throws at them rhetorically.

SHARPS: There’s a tremendous amount of value there. It might be

difficult for it to be realized next year, given all the political rheto-

ric that’s going to come out of the presidential campaign next year.

But if you’re willing to look beyond that, there’s just tremendous

returns to be had.

SUBRAMANIAN: Again, I’m going to be the bear in the room, but the

other issue with health care is that we’ve seen leverage ratios reach

the highest levels in history. It’s an M&A-intensive sector. But re-

Assurance, a digital insurance broker that
started three years ago, for $3 billion. Their
stock went up.

FORTUNE: One sector that has had a rough year is
health care. Investors seem to really be terrified of
the words Medicare for All.

BROWN: Health care is the second cheapest
sector in the market. But here’s what’s inter-
esting. In this quarter, health care is, I think,
the only sector that’s growing earnings year
over year. So what a puzzle that is. It’s got to
be politics keeping people out of these stocks.
To me this is the fattest pitch that exists
right now: 74 million boomers in the United
States, even more overseas. They will now
spend the next 20 years trying to replace every
body part they have [laughter] and living
their best life literally until the last day, and
that’s admirable, and I’ll be there soon—.

SUBRAMANIAN: We’ll be there with you!

BROWN: I feel like they will weather whatever

“There’s a tremendous

amount of value [in health

care]. It might be difficult

for it to be realized next year,

given all the political

rhetoric.” Rob Sharps • T. Rowe Price