Morgan Stanley & Co. Inc., New York, introduced three health care stock indexes.
The new indexes break the industry into three segments: health care product companies, (drugs and medical technology); health care providers (hospitals and nursing homes); and health care payors (health maintenance organizations).
David Risinger, analyst with Morgan Stanley, said while investors have looked at stocks in the category in this way, this is the first benchmark that Morgan Stanley executives know of which classifies health care companies according to sector.
While Morgan Stanley's analysts are positive on all three segments, they are most bullish on the product companies, which they expect to carry higher relative prices based on improving fundamentals and a positive pricing environment, among other things.
One strategy the analysts suggest is a derivative that adds exposure to health care while reducing exposure to the technology sector, which peaked relative to health care as measured by the Morgan Stanley Tech-35 Index in July.
