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 | |
Disclosure: None.
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