The Midterms, the Markets and a Surprising Opportunity in Healthcare

The U.S. midterm elections are over, but what do the results mean for your portfolio? With Washington's political landscape shifting, investors are weighing the implications for stocks and the broader market. Could the election results set the stage for the next leg of the rally, and is healthcare emerging as one of the biggest opportunities? On this episode of In the Money with Amber Kanwar, Paul MacDonald, President & Co-Chief Investment Officer at Harvest ETFs and head of Canada's largest healthcare ETF, explains why the midterms could be a turning point for healthcare stocks. Historically, the broader market has been positive 85% of the time six months after the midterms and 100% of the time one year later. But beyond politics, a bigger shift is underway. As investors rotate away from the crowded AI trade, money is flowing into healthcare, a sector that has spent years out of favour but is now showing signs of a comeback. With healthcare valuations still attractive and earnings growth expected to accelerate in 2027, MacDonald makes the case for why the rally may just be getting started. He breaks down the impact of shifting U.S. healthcare policy, why medical technology stocks could offer some of the best opportunities and whether pharmaceutical companies can keep outperforming. In the Mailbag, he weighs in on Pfizer (PFE), Moderna (MRNA), CVS Health (CVS), Bausch Health (BHC), Zoetis (ZTS) and Boston Scientific (BSX), including which beaten-down stocks could recover and which may still be value traps. In Pro Picks, MacDonald reveals three healthcare stocks he believes offer compelling opportunities: Stryker (SYK), AbbVie (ABBV) and UnitedHealth Group (UNH). He explains why he's sticking with these names despite recent challenges and where he sees the potential for further upside. Timestamps 0:00 Trailer 2:07 Intro: healthcare’s comeback 4:33 Paul MacDonald on the midterms and healthcare 5:58 Is healthcare still an opportunity? 7:59 Healthcare policy: what could change? 10:45 How government healthcare programs affect insurers 12:16 How the Harvest healthcare fund is managed 13:24 Which healthcare subsectors look most attractive? 14:45 Why the fund lagged the healthcare index 16:29 Healthcare’s role in a diversified portfolio 18:45 Healthcare earnings outlook for 2027 19:17 Mailbag: Pfizer’s pipeline and valuation (PFE) 25:14 Mailbag: Moderna’s cancer-vaccine opportunity (MRNA) 29:06 Mailbag: CVS and the proposed drugstore spinoff (CVS) 32:58 Mailbag: Bausch Health and Zoetis (BHC, ZTS) 37:53 Mailbag: Boston Scientific and MedTech competition (BSX) 41:15 Pro picks: Stryker and robotic surgery (SYK) 44:56 Pro pick: AbbVie after Humira (ABBV) 48:00 Pro pick: UnitedHealth’s turnaround (UNH) 51:49 Closing Bell: Paul’s love of the gym Sponsors Thanks to our partners at Guardian Capital LP. Following Conviction, Not the Crowd. Contact your advisor today and ask about Guardian Capital’s Funds and ETFs and visit their website for more information at https://guardiancapital.com ATB Cormark Capital Markets is a leading North American investment firm providing holistic corporate and capital markets advice and full-service financial solutions. Visit https://ATB.com/inthemoney for more information. For over 25 years, Raymond James has been helping Canadians achieve their financial goals. Visit https://raymondjames.ca today to discover how you can live a life well planned. Thank you to our partners at Hamilton ETFs. For more information visit https://hamiltonetfs.com All the charts you’ll see today are sponsored by Wealthsimple Trade. The self-directed trading platform built for active traders in Canada. Learn more at  https://app.wealthsimple.com/74rd/83ftma8x Support for this podcast is brought to you by EQB – the company behind EQ Bank, Canada’s Challenger Bank. For more information visit https://www.eqbank.ca/ The Closing Bell is sponsored by The Haliburton Post House: private executive retreats in Ontario's Haliburton Highlands. Reserve your Fall 2026 or Spring 2027 dates at The Haliburton Post House. Mention In the Money for $1000 off your reservation! E-mail [email protected] for more information.  Links https://inthemoneypod.com/  https://instagram.com/inthemoneypod https://facebook.com/profile.php?id=61569721774740  https://twitter.com/inthemoneypod  https://tiktok.com/@inthemoneypod [email protected] DISCLAIMERS  The information provided in this podcast is for informational purposes only and does not constitute financial, investment, or professional advice.The views expressed by the host and guests are their own and do not necessarily reflect the opinions of any organization or company. The host and guests may maintain positions in any securities discussed on the podcast. Always consult with a qualified financial advisor or professional before making any investment decisions. In the Money delivers expert stock picks, actionable ideas, and timely money management tips. Hosted by business journalist Amber Kanwar, each episode features interviews with top portfolio managers who suggest ways to achieve good returns. Covering everything from ETFs and Canadian stocks to global investing trends, dividend strategies, and risk management, this show is made for DIY investors, stock market enthusiasts, and anyone looking to sharpen their financial strategy. Contact: [email protected] #IntheMoney #Investing #StockMarket #CanadianInvesting #FinancialNews