This story was originally published here.
Historically, this would have been the perfect market for healthcare stocks. The combination of a global pandemic, economic weakness, and rising geopolitical tensions in theory would send investors scurrying to the traditionally defensive sector.
Of course, at least since March, that hasn’t been how it’s played out. Some healthcare stocks have soared, most notably COVID-19 plays like Moderna (NASDAQ:MRNA) and Inovio (NASDAQ:INO). But, overall, this has been a market that’s prized growth over value, and aggressive names over defensive ones.
Those trends generally haven’t favored healthcare stocks. Indeed, the sector’s largest exchange-traded fund, the Health Care Select Sector SPDR Fund (NYSEARCA:XLV), has gained just 3.6% year-to-date. That’s modestly ahead of the S&P 500, but badly behind the tech-heavy NASDAQ Composite, which has jumped almost 20% in 2020.
But in a world with enormous uncertainty, and a market still near all-time highs, the sector as a whole looks attractive. At some point (presumably), the lust for growth at any price will ebb. That in turn might allow healthcare stocks to lead the market, rather than lag as they have over the last few years.
Investors optimistic toward the sector can go the ETF route. There are a number of solid plays in the space as well. Here are five worth considering…
Editor's Note: Click here to keep reading.
Electric cars are taking over
A new type of battery is pushing everything we thought we knew about energy storage to the limits.
According to automotive insiders, consumers will soon be able to go 1,000 miles on a single charge.
Think about that for a moment…
That’s nearly TRIPLE the distance of the best-performing electric cars on the market right now — and more than 8 TIMES farther than the average electric car…
In short, this tech is about to change EVERYTHING.
Here’s the best part:
At the heart of this new technology is one company — 1/1,000th the size of GM.
If you want to get in on the electric car revolution, this is easily the best way to do it.
Click here to see the full story.
Senior Investment Strategist, InvestorPlace