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Invest in Pharmaceutical Stocks?

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  • Description

    United Advisors chief market strategist Scott Martin explains why the pharma is a good bet.

  • Duration 3:08
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My next guest says that another month of job gains in the health care sector with almost 45000 jobs -- is just one more reason to invest.

In pharmaceutical stocks got Martin you know despite the market strategists is here Scott near you like in -- -- now more because today's job.

The bars are right.

Yeah I do -- I put a lot of faith in the employment numbers as far as what sectors -- like to invest in for myself and my clients and if you look at pharmaceuticals and -- you mentioned health -- numbers today.

They look really good health care sector acts as -- the strongest job gainers of all.

A 2012 so if you look at pharmaceuticals.

There's a lot more people getting medication obviously these days the United States especially.

With the way congress is behaving certainly so the over the counter stuff doesn't work as well you need -- adds I like pharmaceuticals XPH is the ETF you can on that owns all the pharmaceutical company.

And that ETF had a double digit return for 2000.

And twelve let me are you confident they're still gonna get that type of return coming in for 2013.

-- mean you know we we do have.

And I don't know what does -- -- device makers but you know you do have the medical device tax that's kicking and a lot of new taxes are coming -- 2013 to fund obamacare or you're not worried that that's going to be -- negative on the pharma sector.

No not so much and and and you guys kind of touched on in the previous segment I mean the generational.

Forces here I guess in the in the American population are such that medical devices Cheryl are gonna be in more and more demand and so highlights legal like.

The fact that we're moving further along in the future with regards to those companies so that's another reason to that I like this sector.

Okay that's what they don't wanna ask you about Scott and testing issue of worker productivity ninety go through the report today mean besides like manufacturing jobs and today's a report.

Productivity.

Do you think we're gonna see worker productivity go higher wages stagnant unemployment -- level in 2013.

-- -- -- -- Yeah I.

Maybe two of those three things in and one thing interesting I think that's going on sure that nobody's really talking about.

Worker productivity for my work is actually slowing believe it or not over the last several quarters productivity has been actually declining.

I'm -- that's an interesting kind of I guess situation because what's gonna happen.

Employers are either gonna have to hire more people or -- -- that worker they -- have.

-- you're gonna have to work more and because the labor market is so -- that that is so many people are looking for jobs they may not have to pay more.

Of those people are to those people so that's going to be an interesting situation because that's -- -- way that I think companies are gonna be able to overcome.

This hit they're gonna take on potential profitability with all the new taxes we have this year keep them working longer hours -- -- the same happy that you have a job kind of situations that would.

Before they got the labor participation -- -- -- hello it's just about sixty to your about that.

Yeah I very much so in fact it's drilling much near an all time low and I don't think that's a great sign for the labor market you wanna see that Bob Bob.

In in invariably sure you're gonna see the unemployment rate ticked up as the job market gets stronger.

Because more people consider themselves looking for work which is actually a good son Scott Martin that does good to have you on the on lots of issues but that pharmacal very interesting you don't follow up with you throughout the year on that.

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