Life insurance sales up but hospital stocks did not rise in the midst of Coronavirus pandemic….

It is interesting to observe that life insurance sales rose, but hospital stocks maintain status-quo during the coronavirus pandemic. There are several possible reasons for this.

With people more cautious about their health and adopting risk management measures, obviously they turn to purchasing insurances. Hence, the increased demand for life insurances.

On the other hand, with everyone in lock down, there are fewer elective surgeries and other consultations, thereby reducing hospital visits and revenue associated with such services. While Hospitals may be busy treating coronavirus patients, these are not necessary high margin treatments. Hence, hospital stock remained stable and did not rise the way many grocery stocks rose. The organisations that benefited from the coronavirus pandemic are the pharmaceutical companies that supplied medicine, products & other equipment that are required by Hospitals during that period.

If you are into investing and evaluating options in the stock market, do take these into consideration…

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