Health care reform may have their future on hold, but star fund manager Tom Forester says the worst is already built in.
NEW YORK (Fortune) -- With health care stocks cheap compared to the rest of the market, Tom Forester thinks that a bad-case scenario health care bill is already priced into the sector.
"These are emotionally difficult stocks to hold right now because they are in the crosshairs," says the manager of the Forester Value Fund (FVALX). But it's his job to hold onto them. "Value guys are paid to buy stocks that are cheap and have some emotional component in it."
Health care stocks are hurting the fund a bit this year, he says, but last year they helped it become the only diversified stock fund in the U.S. that didn't lose money. Forester also beat the S&P 500 (SPX) by about 40 percentage points, according to Morningstar.
Click here to read more
very interesting article. I've never thought about health care stock. Along with health care reform, this will be the new thing.
ReplyDeleteQuang Nguyen