The credit crunch that has morphed into a global recession, or at least generated enough fears of a recession to drive the stock market way down, is now raising questions like, “is anyone immune?”
Of course, some sectors are more immunoresistant to the investment squeeze than others, notably the healthcare field, putatively unperturbed as it is by economic variables.
However, an article in Barron’s got my attention today, suggesting that healthcare missed its economic flu shot. On further investigation, it becomes clear that the original premise is sound: Â healthcare is highly resistant to enconomic variables. Â While capital-equipment expenditures may be delayed and cosmetic and other elective surgeries may be delayed, the fundamental need for diagnostic and therapeutic healthcare remains undaunted by bad real estate investment. Â
This is clearly a relief. Â There is already enough irrationality governing world financial markets. Â To think that there might have been a co-morbidity between subprime lending and any particular disease incidence was too much to have to worry about.