Jefferies Sees Healthcare 'Under Pressure' (XLV)

Jefferies & Co. conducted a major survey of health care investors recently, and found some telling concerns. According to its research report, the "survey conducted of healthcare service investors (N=89) last week revealed almost uniform concern about three issues -- (1) sector volumes, (2) the current reimbursement/pricing environment, and (3) fallout from healthcare reform." Jefferies analysts note that "Interestingly, other issues like current market volatility, the outcome of the upcoming mid-term elections and current valuation levels were much less important to current investment decision-making." Jefferies concludes that "Our takeaway here is that the healthcare service sector may remain under pressure until evidence (in the form of earnings results) alleviates these primary concerns. In our opinion, that could be two to three quarters away." On a brighter note, "The good news, though, is that given how low valuations have fallen, when that evidence comes, stocks will respond quickly." The Health Care SPDR ETF

closed up 0.45% today, to $28.80.