Hi Jim,

I recall you that medical devices ETF has beaten S&P500 and QQQ over the long term.

IHI, the US Medical Devices index ETF, is down 22% YTD and 13% over 5 years.

Seems like a safe place to hide from AI.

Morningstar: Etfs Arcx Ihi

US medical technology stocks, once high-flying, now trade at far more reasonable valuations. The S&P 500 Health Care Equipment Index is trading at a 10-year low on two-year forward earnings estimates, down from a peak price-to-earnings ratio of 30 times earnings in 2021 to 16 times earnings last month.

Many device makers were viewed as companies worth paying a high price for, with profits that could grow steadily year after year, until the GLP-1 panic hit. Investors feared weight-loss drugs would shrink the obese population — and, with it, demand for surgeries. At the same time, post-Covid procedure normalization and renewed concerns over payer prior authorization added fears of weaker pricing power.

Revenue and earnings should continue to compound even if valuation multiples do not rise. The US Census Bureau projects an approximate 42% increase in the number of people aged 65 and older from 2022 to 2050. Joint replacements, pacemakers, valves and stents are largely non-discretionary procedures.

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