Healthcare Stocks Are Fading: Over-Owned Or Rotation Effect?

But healthcare and biotech are widely held so stocks-picking aside they may underperform in a  recovery economy when cyclical stocks recover. Since we cover primarily healthcare, biotech, medtech, and life science stocks we are not providing coverage of cyclical and tech stocks. We nave been focused on companies and stocks that were key to combating COVID.

Below you will find a chart that summarizes the performance of our Model healthcare portfolio compared to another sector ETFs.Focus on a more balanced portfolio.

  1. The DOW is up 7.36% YTD leading the NASDAQ and S&P after a great week.
  2. Large-cap biopharma can be considered a value sector with lower projected PEs for 2021.
  3. Momentum is fading for COVID growth stocks and stock picking is more difficult.
  4. Small and mid-cap ETFs still look good: IJR, IJH, IWD, IWM and can help balance your portfolio.
                         
PORTFOLIO                        
    Initial                    
Stock/ETF Ticker Price Wgt 11/27 %Perf Price QTR 2020 Price %Perf High P  
    10/25 %   1 mo. 12/31 % % Perf 3/13/21 YTD 2021  
iShares NAZ Bio IBB 136 25 143.22 2.27 151.5 11.9 25.7 154.75 2.15 172.6  
iShares Russell 2k IWM 163 10 184.37 16.56 196.4 30.9 18.3 233.59 19.14 233.59  
Merck MRK 80 10 79.86 2.4 81.77 -1.39 -10 74.6 4.44 85  
United Health UNH 330 25 337.94 5.44 350.7 12.5 19.3 356 7.92 365  
SPDR S&P Bio XBI 117 5 131.46 11.95 140.8 26.3 48 146.51 4.07 174  
Healthcare SPDR XLV 108 25 109.44 3.35 113.4 7.55 11.4 114.6 1.02 118.15  
                         
DOW DIA               328.31 7.36 328.31  
S&P 500 SPY               394.06 6.45 394.06  
NASDAQ-100 QQQ               315.46 0.8 336.45  
T.Rowe Hlth Sci

PRHSX

            * 99.33 0.49 106.6  
Fido Biotech

FBIOX

            * 25.47 1.15 27.73  
SPDR S&P Pharm XPH               54.45 4.59 56
1 2
View single page >> |

Disclosure: Long ABT, ABBV, BMY, JNJ,  MRK, UNH.

Disclosure: None.

How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.