Investing Opinion

Health Care Reform Is Healthy

Stock quotes in this article:IHF, VHT, IHI 

As for hospitals, they were able to keep intact a $155 billion deal that enables them to receive payments from Medicare and Medicaid.

Three equities expected to remain in an uptrend are:

The iShares Dow Jones U.S. Health Care Providers(IHF), which gives exposure to hospitals. IHF is up 71% from a March low of $26.68 to close at $45.55 on Tuesday.

The Vanguard Healthcare ETF(VHT), which gives broad exposure to the healthcare sector. VHT is up 41% from a March low of $37.58 to close at $52.90 on Tuesday.

The iShares Dow Jones U.S. Medical Devices(IHI), which focuses on the medical device sector. IHI has rebounded from a March low of $31.69 to close at $50.37 on Tuesday, an increase of 59%.

When investing in these equities, inherent risks are involved. A good way to mitigate these risks is through the use of an exit strategy. According to the latest data at www.SmartStops.net, an upward trend in the previously mentioned ETFs could come to an end at the following price points: IHF at $42.11; VHT at $51.25; IHI at $48.77. Keep in mind that these price points fluctuate as market conditions change and updated data can be found at www.SmartStops.net.

Written By Kevin Grewal in Laguna Niguel, Calif.

>To order reprints of this article, click here: Reprints

At the time of publication, Grewal had no positions in equities mentioned.

Kevin Grewal is an editorial director and analyst at SmartStops.net where he focuses on mitigating risks and implementing exit strategies to preserve equity. Prior to this, he was an analyst at a small hedge fund where he constructed portfolios dealing with stock lending, exchange-traded funds and alternative investments. He is an expert at dealing with ETFs and holds a bachelor's degree from the University of California along with a MBA from the California State University, Fullerton.

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