A week ago we had an NFTRH update (now public) about the Healthcare sector. With a nod to this morning’s Market Psych 101 article, I was at a point of having to admit that the ‘terminal bounce’ scenario may be a faulty one and I saw some things in the beaten down Healthcare sector that looked interesting. Check out the post for those details (I have held BSX right along, and have since added AMGN, PFE and XLV per the update’s views of them).
In my experience in manufacturing and in particular, medical device/equipment manufacturing, this sector (backing out the political rancor in Pharma/Biotech for a moment) has traditionally been as recession proof as any this side of booze and vice. So not only has Healthcare lagged greatly in the bounce/recovery but it is also a safer haven if the economy starts to sputter.
Here’s the updated weekly chart of AMGN from that update. So far so good. BSX is even better. As of 1:46 US Eastern time I still hold SPY short, but I am starting to get that old Greenspan era feeling folks. It has been creeping into view for a few weeks now.
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