I hope you had a great Memorial Day. As we move through the summer months, I’ll share some updates on various investment sectors and strategies that should get us through what can sometimes be a difficult time of year.
LPL Financial’s View
The Health Care Sector
The sector has benefited from policy clarity, expected higher demand from universal health insurance coverage, and an increased pace of innovation that has fueled strong gains in the biotechnology and pharmaceutical industries this year.
Investors have enjoyed attractive yields from the pharmaceutical industry.
Note: Past performance is no guarantee of the future and yields fall when prices rise.
The Sector is Broad
The Sub Industries
The health care sector is comprised of biotechnology, distributors, equipment, facilities, managed care, supplies, services, technology and pharmaceuticals.
S&P currently ranks the sector as “overweight” and sees growth potential in most of the sub industries. The pharmaceutical group is comprised of names like these: Abbvie, Actavis, Allergan, Bristol-Myers Squibb, Dr. Reddy’s, Johnson and Johnson, Merck, Mylan, Pfizer, Salix and Sanofi.
Note: This is not a buy recommendation but intended for educational purposes only.
Current pressures on pharmaceuticals include patent expirations, increasing generic drug penetration and European austerity cutbacks.
Investing in one particular sector involves more risk than a more diverse portfolio. Seek advice first.
Until next week,
Quote of the Week: “The victory of success is half won when one gains the habit of work.” ~Sarah Knowles Bolton