Market Outlook He feels the market is back to dot.com type valuations -- 14 times EBITDA and all time highs for marketcap to GDP. Historically at these valuations you could see zero to negative returns on average for the next 10 years. At the trough of the 2008-09 market collapse, valuations plunged to 8 times EBITDA. Not every part of the market is necessarily over valued, but defensive areas like utilities and value stocks are very expensive. Investors could look to energy, but they are in a perennial down trend. Financial, industrial and consumer staples are middle ground areas that are still affordable.

Healthcare has permanent and non-cyclical drivers like no other sectors. Looking at developing markets, a lot of their GDP gets spent on healthcare. There is also technological innovation, happening in medical, biotech and pharma industry which is strong.

China is a great example of healthcare spending expansion. In 2002, spending was around $250USD per capita. Now it's around $850. The expansion just has to continue at the pace right now.

The healthcare sector has been the whipping child of the election campaign. However, the macro environment is important. Last year, healthcare was under a lot of pressure but this was sentiment driven from macro politics. There was a shift in sentiment in Q3 earnings where any misses were bought, and beats were rewarded. Sentiment is now positive.