The medtech sector remains as compelling a safe haven as any other for investment. Nonetheless, the depth of the recession and the reach of its negative impact (real or perceived) are enough that medtech is not immune to recessions worries. Of course, this is obvious enough to anyne close to the subject. But so what?
How does this fact change your perspective on the medical product industry?
What significance does this have for your investment decisions in 2009?
Is there a better place to put your money?
To put it bluntly, I believe the real impact of the recession on the medtech industry is that it simply opens opportunity for those not faint of heart, to pursue bargains.
True, the limitation of credit, the squeeze on discretionary funds that might be spent on elective (e.g., cosmetic) procedures and the hold put on capital equipment expenditures are certainly real. But what does that leave? Well, in fact it leaves most of the medtech industry unscathed and highly resistant if not immune to the recession.
In my opinion, what brings economies out of recession is the dawning realization that business decisions have to be well grounded in profitability.
So, what are savvy companies going to do? Wait to see if in fact people really do need life-saving medical technologies? Wait to see if the opportunities for medtech will get any better?
Call me naive, but the opportunities are about as good as they get right now.