Healthcare Portfolio Performance-Small Stocks Perk Up!

• Our new large cap picks have done well over the past two weeks: ABBV $85 to $99, ABT $105 to $112, and MRK $75 to $81.
• Small cap speculation racks up gains with big movers this week: BHVN, DNLI, NTLA, OCUL, PACB, and TWST.
• Vaccine stocks on a run: BNTX, CVAC, MRNA, and NVAX.

Three weeks ago, we suggested that investors stay the course with healthcare and biotech because of potential volatility with the 2020 Election and COVID-19 cases spiking.

We will summarize the performance of our ETF and stock based portfolio in one month, but for now, the portfolio looks good. We also gave a weighting to the portfolio to smooth out volatility. Post-election performance has been good for the sector. This past week saw the small caps soar over 6%, with the XBI up 4.35%.

Usually the small cap ETFs (IWM) tracks performance of biotech stocks, and the XBI is weighted toward mid and small caps. But with many biotech small caps near highs, the day to day volatility can bring much chaos. Denali Therapeutics (DNLI) was at new highs and then tumbled down 6.85% to $65 on Friday.

We have seen a big shift over the past few days toward energy, financial, and industrial stocks, so that would mean a shift to value stocks. Next week will see many retail stocks reporting. The COVID-19 vaccine has emboldened some traders to look ahead to the mid-2021 time frame as the economy opens up. On Friday, the rally was broader with the S&P 500 up 1.36% and the DOW up 1.37%.

Healthcare and Biotech Portfolio using ETFs