Pickleball & Markets
By Michael Foster, CFA, CFP®
I’ve gotten a little bit swept up in the fastest growing sport in America, pickleball. It’s been a fun way to get some exercise with my wife and friends that combines traits from 2 other sports I enjoy, tennis and ping pong. We often go to a park near us, listen to some music while playing, and go out for a beer afterwards. I first played about a year ago after buying a cheap set of paddles and balls and heading to my nearest park’s recently converted tennis court. Fast forward to today, and not only have several other parks around me converted tennis courts over to pickleball courts, but you must book a reservation (often several days in advance) just to get time on a public court. Its growth in popularity has been astonishing, not to mention quite noisy for those that are fortunate enough to be within earshot of the game’s loud “pop”.
You can imagine my surprise when perusing the internet for market news in finding an article on pickleball and its potential effect on healthcare stocks. The article on Bloomberg begins by pointing out that healthcare stocks recently fell after UnitedHealth Group said that usage rates were up for their customers. Specifically, the company mentioned hip replacements, knee surgeries, and other elective procedures as drivers of this increased usage. The article then references a recently published UBS report that offers a theory of pickleball being a driver in more injuries, leading to some of those elective surgeries, leading to higher usage rates. They even go on to estimate that $377 million total will be spent in 2023 alone on pickleball injuries and care! I’d recommend checking out the linked article when you get a chance.
I’m always interested when different areas of interest in my life cross over one another, even if it’s just pickleball’s potential effect on stock prices. If you enjoy pickleball as well, hopefully you and I both can avoid being part of the $377M estimate for our health and portfolio’s sake!
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Ben Dolan and Michael Foster are investment advisor representatives of Dolan Capital Advisors a North Carolina state-registered investment adviser. Investment advice offered through Dolan Capital Advisors, Inc.