As per the prediction made by MDE Group in Morristown and New York City, which is one of the state’s leading money-management firms, in U.S, because of Obamacare, the healthcare industry looks good in 2013. They have also predicted that the Standard & Poor’s 500 will return between 5% and 8% as attractive prices and low interest rates offset sluggish economic growth.
As per the reports given by MDE, Obamacare will boost the Americans who have health insurance, and this newly insured population will see that demand exceeds supply and the healthcare will become a growth industry again, as it was earlier in 1980s and 1990s.
The report says that, many Big Pharma firms such as Johnson & Johnson, Pfizer, and Merck have become victims of their own success as they grew into megacap firms. Obamacare will increase the number of Americans with health insurance, and this newly insured population will in turn increase the volume of healthcare services delivered. The increased demand and the limited supply of health care providers might create a near-term supply-demand imbalance and create price pressures.
According to the report, demographics are moving in favour of healthcare firms; with the huge increase of elderly population in U.S and it already has in Europe and many parts of Asia.
MDE has also said that, the U.S. housing market must carry on recovering. The recovery is aided by near-record low mortgage rates, the modestly recovering economy, and the partial depletion of a large inventory overhang. Builders are once again investing aggressively in the housing market, with new housing which has started rising at a double-digit level in recent months.
The report also says that, the developed global economy would remain fixed for a long-term period mainly due to slow growth and heightened volatility, punctuated by periodic financial crisis.