Chung writes that she now favors companies with large recurring revenue streams, plus strong secular growth opportunities, clean balance sheets and shareholder-friendly capital allocation policies.
Higher co-pays and deductibles in government health insurance push consumers to balance costs and benefits in deciding how much health care to consume, improving the allocation of resources in the health sector.
But the Fed has not told us when it will begin to normalize its balance sheet, and the expectation is that it will further expand its asset acquisition and influence the allocation of credit.