Shares of dental service companies have seen a significant increase, driven by Robert F. Kennedy Jr.’s recent comments regarding fluoride and its health effects. Investors are optimistic that a potential push from the incoming Trump administration to remove fluoride from drinking water could lead to higher demand for dental services.
Kennedy, who has been appointed by President-elect Donald Trump to lead the U.S. Department of Health and Human Services, announced on social media just before the November 5 election that Trump would eliminate fluoride from public water supplies on his first day in office.
Kennedy, known for his skepticism towards vaccines, has labeled fluoride as an “industrial waste” and has linked it to various health issues, including arthritis and neurological problems in children.
Don Bilson, head of event-driven research at Gordon Haskett, explained to investors that Kennedy’s role at HHS could mean a reduction or elimination of fluoride in drinking water. He noted that this could lead to an increase in tooth decay and more dental visits as a result.
However, many dental experts dispute these claims. Dr. Aaron Yancoskie, associate dean at Touro College of Dental Medicine, stated on “CBS Mornings Plus” that there is extensive evidence showing fluoride is safe and effective in reducing cavities by strengthening tooth enamel. Some studies have suggested a link between fluoride exposure in pregnant women and neurobehavioral issues in children, prompting calls for further research.
Fluoride is known to protect teeth from decay by combating bacteria that produce harmful acids. The U.S. has been adding small amounts of fluoride to drinking water since the 1950s to help prevent tooth decay.
Since Trump’s reelection, stocks in dental companies have surged as investors respond positively to his campaign promises to cut corporate taxes and reduce regulations.
The stock prices of companies like Henry Schein have risen sharply following Kennedy’s appointment announcement. Henry Schein saw a jump of over 5% shortly after the news broke. Bilson noted that while dental stocks are performing well, other sectors in healthcare are experiencing sell-offs due to concerns about Kennedy’s vaccine skepticism.
Kennedy’s political journey has been notable; he initially ran as a Democrat against President Joe Biden before shifting to an independent candidacy and endorsing Trump. He has gained attention for his anti-vaccine stance and criticism of the pharmaceutical industry.
In summary, while some investors are betting on increased demand for dental services due to potential changes in fluoride policy, many experts stress the importance of fluoride in maintaining public dental health. The market’s reaction highlights the ongoing debate over fluoride’s role in drinking water and its implications for public health.
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