ISHARES DOW JONES US MEDICAL DEV.(ETF)IHIBUYJun 15, 2018Stock price when the opinion was issued
As of Jun 09, 2026. Market Open.
Healthcare is not a value trap. It's the worst performing sector this year--and could get worse--but the knife has fallen. If you're looking for something to buy in a market with high valuations and possible headlines from inflation prints, look at healthcare. Healthcare is insulated from interest rate volatility. If you're worried about Trump's attitude to phama, then look at healthcare equipment and services and buy IHI.
Not overly bullish on healthcare as a whole, as its growth may be less attractive. Likes medical devices, with a built-in backlog due to Covid. He owns SYK. There should be a significant pickup in procedures over the next 2 years. SYK has strong earnings growth, near a 1-year high. Also look at IHI, the medical devices ETF, packed with companies leading the healthcare sector.
(A Top Pick Aug 15/18, Up 20%) A good way to play pharma without the litigation problems. For a Canadian one, it would be ZUH. Medical devices have done very well, and wish he had more.
Buyer or wait for pullback? Healthcare in general is in sweet spot of seasonality, which starts in June. Medical devices is one of the sectors in a secular bull market starting in 2012. Every chance you get, get a good component of healthcare in your portfolio. Secular trend owes a lot to demographics. For medical devices, pharma, biotech it’s a good time to get in from a seasonal and a secular point of view.