HEALTHCARE (XLV)

The CPI and PPI releases this week came in more or less at estimates - nothing to alarm the talking heads, anyway. They show inflation slowing down but not receding.

Small caps took another step down this past week as geopolitical events dampened sentiment.

The selling has been pretty orderly thus far. The meaning behind this runs deep.

I often discuss highly rated stocks that are part of highly rated sectors. Thus, this time is a departure from the norm. Let's dive into the data for the healthcare sector.

Healthcare performed terribly in 2023 and 2024, falling while the market was soaring. Year-to-date, the sector has outperformed. Is it time to focus on the stocks and ETFs of this low-Beta sector as volatility rises quickly?

Large cap biopharma and MedTech stocks are leading the healthcare sector higher.

The top-performing sector last week was financials, they closed up over 2.8% on the week at their highest weekly and monthly level in history.

The stock fell over 7% on Thursday after reports that federal health officials under the Trump administration are re-evaluating Moderna's $590 million contract for bird flu vaccine development.

Many analysts are feeling better about the prospects for healthcare stocks in 2025.

We’re starting to see money flows into more defensive sectors of the market. This is rather concerning in the near-term.