December 12, 1999

Two weeks ago, President Clinton signed the Consolidated Appropriations Act for FY2000 into law. The provisions of the Act included some important answers to the question, "What will Washington do about health care?" For long suffering investors in hospitals, home health care agencies, skilled nursing homes, and durable medical equipment, this years answer was to keep these industries on life support with a long convalescence expected. Investments significantly tied to Medicare and Medicaid reimbursements will underperform the market for 20 of the next 25 years. Equity investors should stay away unless they are skillful at spotting special situations or have finely honed trading skills. Fixed income investors who choose these industries securities should keep short durations and favor secure collateral.

You must have an active account to view these reports. You may register for a trial here

Download Complete Report in PDF Format

Download Complete Report in Word Format