Q: Good morning,

HHL is a core holding for me, and has been for some time, mainly for income (~10% yield).

I understand the pros/cons of covered call strategies. But given that this ETF is equally balanced with the largest 20 health care companies in the US, I am generally comfortable with it as a holding.

My question is this - what is your macro view of large-cap US health care stocks right now? On the one hand I get excited about the sector when factoring longer-term AI and how this will impact the space. And then I easily get caught up in the headlines that we are all seeing right now from the current administration, and the generally negative impact this is having on the individual stocks in HHL.

Curious for your views on the sector.

Thanks as always.

Q: There are two questions here, the first relates to the abandonment of science, a policy issue. I note that HHL has recovered significantly and reportedly follows the prospects of leaders in medical science, in which Crisper also participates, that issue is now lagging and down. While this appears to be an extraordinarily cruel hit to an essential industry, question I have - is there a reason which might be ordinarily attributed to each of these related issues, and how do you perceive the outcome?



The second question relates to the price of Lithium. It is my understanding that China has closed a major supplier of Lithium and that this briefly sent the price soaring. It is my guess that this has occurred because salt has replaced Lithium as an energy storage mechanism for major - grid related - energy storage facilities, despite its lower energy density and because of its availability and cost to produce, but that Lithium is expected to be used in cars, bikes, and hand held devices because of its higher energy density/ capacity. Does this coincide with your view of the lithium industry's prospects and do you have an opinion for the trajectory for the price of Lithium?

Q: I hold HHL in my RRIF which is primarily focused on income. I am considering switching HHL to
HHLE. This would increase my income by approximately 30% on this money and allow me to keep the same list of healthcare stocks. Does this make sense; any downsides ; am I missing anything?

As an aside , I am at breakeven with HHL as the sector is under pressure from Trump and also United Healthcare has dampened the sector. But with Trump wanting lower drug prices , the companies will be going overseas to compensate for lower US revenue as witnessed by Eli Lilly raising international prices for Mounjaro.
Thanks .Derek