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> If a person expects lots of medical care later in life, suggest them a portfolio heavy on medical stocks so that if their expenses go up, their investment doe
by vasco 12y ago
> If a person expects lots of medical care later in life, suggest them a portfolio heavy on medical stocks so that if their expenses go up, their investment does too.
How is what an individual spends in medical care correlated with medical stocks?
- splintercell 12y agoI agree, this doesn't make much sense to me, the correlation is flimsy.
- yummyfajitas 12y agoEvery individual holds a short position on medical costs. If medical costs and the value of medical stocks are correlated, then one can hedge that underlying medical short by going long medical stocks. I don't actually know if that correlation holds. I should have been clearer that I was guessing it might. I actually don't know the right sort of hedging for medicine - would be great to have some help with that.