Healthcare Portfolio Update -January 2021

With all the FROTHY moves over the past week the upcoming week of earnings offers a good test of market strength, Raise a little cash.

Healthcare Portfolio Review

We have emphasized over the past few years to weight your Portfolio with XBI if you want beta or feel bullish and even over the past week among ETFs it outperformed. The XBI is equal weighted with biotechs including many small and mid caps and is up over 6% in January. The IBB did well up over 5% for the month despite having almost 50% in well known large caps: AMGN, GILD VRTX ILMN REGN and of course MRNA. Why try to to pick large caps when the IBB and the XBI do a better job? We’ll see in times of high volatility. Maybe you owned  Lilly (LLY) up 24,5% in one month boosted by earnings and a potential breakthrough antibody treatment.

Watch for weakness in the small caps (IWM) as that could diminish speculative appetite for biotechs.

February can be a weak month and the recent big momentum plays raises concerns, Can life science  stocks remain leaders during a major set-off?

Or does the market move to the next hot sector ? Barron’s says watch for a commodities run.

PORTFOLIO                        
    Initial                    
Stock/ETF Ticker Price Wgt P 11/13 P 11/27 %Perf Price QTR 2020 Yr Price %Perf  
    10/25 %     1 mo. 12/31 % % Perf 1/29/21 1 mo.  
iShares NAZ Bio IBB 136 25 141.06 143.22 2.27 151.5 11.9 25.7 160.64 5.35  
iShares Russell 2k IWM 163 10 173.51 184.37 16.56 196.4 30.9 18.3 205.56 4.66  
Merck MRK 80 10 81.09 79.86 2.4 81.77 -1.39 -10 77 -4.37  
United Health UNH 330 25 355.67 337.94 5.44 350.7 12.5 19.3 333.58 -3.31  
SPDR S&P Bio XBI 117 5 125.04 131.46 11.95 140.8 26.3 48 152.88 6.11  
Healthcare SPDR XLV 108 25 112.12 109.44 3.35 113.4 7.55 11.4 115.03 2.47  
         
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Disclosure: None.

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