Marietta Area Chamber of Commerce

Page 6 Marie a Area Chamber of Commerce Sponsored Advertisement Members of the Advisory Team Ashley Ullman, Rob Blasczyk, Brett Bronski, Rob Beardmore, Chris Hall, Managing Principal, Jeremiah Kuhn and Kevin Knab. Hall Financial Advisors, LLC 1101 Rosemar Road, Suite A, Parkersburg, WV 26105 416 Hart Street, Suite A, Marietta, OH 45750 TOLL-FREE: (866) 865-4442 Health care makes up roughly 18% of the U.S. economy and is expected to grow 5.6% per year through 2025.* In fact, ex- perts anticipate ongoing expansion in this sector no matter what happens with the broader economy — thanks at least in part to the millions of aging baby boomers. When financial advisors look at investing decisions they often start with health care stocks. About 14.5% of the S&P 500 Index, which is often used as a proxy for the over- all stock market, is health care companies. Within that 14.5%, the biggest subindus- tries are drug makers, biotech companies, medical device manufacturers, and man- aged care companies. Wells Fargo Investment Institute now rec- ommends that investors overweight their portfolios in the health care sector because an aging population is a major factor driv- ing growth in the sector. But there are still unknowns. One of the big ones is what might happen in Washington. An adaptable sector. The Affordable Care Act created some headwinds the way it was written noting the law increased fees and taxes on some health care companies. At the same time, it also expanded the number of people with health insurance, which in turn can mean higher sales of drugs, medical devices, and medi- cal services. In the time since it was enact- ed, however, insurance companies and oth- er health companies have adapted to the new health care marketplace — especially the bigger, diversified managed care com- panies. So far, efforts to "repeal and replace" the Affordable Care Act in Congress have been unsuccessful, but there is still plenty of talk in Washington about making changes to — or eliminating entirely — the law. The idea of something happening without a concrete direction or actual plan creates uncertainty. Uncertainty is one of the biggest things the market doesn't like. Other legislation in Washington, could be a boom for some segments of the health care economy. For instance would not be a very good idea for a very conservative, income-oriented investor. Biotech firms tend to be a lot more speculative in nature than your more established large pharmaceutical companies. Health care investment opportunities can also help meet other portfolio goals, such as international exposure. *https://www.cms.gov/research-statistics-data- and-systems/statistics-trends-and-reports/ nationalhealthexpenddata/nhe-fact-sheet.html Health Care and Your Investment Portfolio if tax reforms encouraged companies to repatriate dollars from overseas — perhaps through temporary lower tax rates on those earnings — it could spark more mergers and acquisitions among biotech, pharmaceutical, and medical device companies. Investment opportunities. Health care is often seen as a defensive investment — perhaps a good place to consider regardless of market and eco- nomic conditions. After all, people still get sick no matter what the economy is doing. While health care is a large and diverse sector, not every investment is appropriate for all people. For exam- ple: Investing in biotech This advertisement was written by Wells Fargo Advisors Financial Network and provided to you by Chris Hall, Managing Principal. Investments in securities and insurance products are: NOT FDIC-INSURED/NOT BANK-GUARANTEED/MAY LOSE VALUE. Investment products and services are offered through Wells Fargo Advisors Financial Network, LLC, Member SIPC, a registered broker-dealer and a separate non-bank affiliate of Wells Fargo & Company. © 2018 Wells Fargo Advisors Financial Network, LLC. All rights reserved. CAR-1117-04874 Sector investing can be more volatile than investments that are broadly diversified over numerous sectors of the economy. Some of the risks associated with investment in the health care sector include competition on branded products, sales erosion due to cheaper alternatives, research & development risk, government regulations and government approval of products anticipated to enter the market. Additionally, companies can be exposed to cuts in Medicare reimbursements as well as uncertainty surrounding healthcare reform efforts in the U.S. These risks can have a significant effect on investment in the industries within this sector and negatively affect a portfolio's pursuit of its investment objectives. Foreign investing entails risks not typically associated with investing domes- tically including currency, political, economic, and the risks associated with different accounting standards. Wells Fargo Investment Institute, Inc. is a registered investment adviser and wholly-owned subsidiary of Wells Fargo Bank, N.A., a bank affiliate of Wells Fargo & Company.

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