Q4 2022: A Late Bounce in a Challenging Year
- 2022’s fourth quarter was a welcome change from the rest of the year in terms of public market performance. After heavy declines throughout the first three quarters, Q4 marked a return to stability in the benchmark S&P 500 Growth Index, which was down just 0.8%. Underlying macro factors such as unemployment continue to paint an optimistic picture, while consumer price data indicates a slowing of the inflation that has characterized much of the past two years.
- M&A activity slowed from 2021’s torrid pace, though transactions were completed at a healthy clip relatively speaking, with fourth quarter volume up 0.6% compared to the average of the previous five years. Within Healthcare, Service companies were the most frequently acquired, making up 28.2% of 2022’s transactions, followed by Medical Equipment which comprised 22.0%.
- PMCF’s four tracked medical subsector indices all outperformed the benchmark S&P 500 Growth Index during 2022, which was heavily impacted by large tech sector sell-offs. The Dow Jones Industrial Average was the big winner on the year, down a relatively mild 9.4%.
