Destra Insights

On June 25, the Federal Reserve released its 2020 large-bank Stress Test results. For the most part, they were as expected given the severity of the current healthcare crisis and global economic slowdown.

The world, in general, and healthcare investing continues to be a wild and crazy place. Of course, a good bit of this tumult derives from the Covid pandemic. The upcoming Presidential election has not contributed to settling things down either. There continue to be myriad opinions about the right path forward. We won’t articulate any particular view, but the fact is that we have to invest effectively for our shareholders in healthcare assets amidst a panoply of opinions and actions that have had a noticeable impact on sentiment and on the value of certain of the stocks which the Tekla Funds own.

An important key to enhancing portfolio performance and reducing risk is through more effective portfolio diversification. As the chart below shows, this can be achieved by combining asset classes that exhibit low correlations to one another.