Jim Lebenthal Health Care Select Sector SPDR Fund XLV-N BUY Feb 26, 2025

The recent inflows into healthcare are based on the new diet drugs like Ozempic. Novo Nordisk and Eli Lilly have benefitted from this trend. These diet drugs are the AI equivalent in healthcare, are blockbusters. 

Bought this to be defensive, however, health care wasn't that defensive this year. Now, HC is past seasonality and he doesn't like it.

Likes healthcare in general, a larger weight for him. Healthcare has been the leader YTD, only 11 days into the new year. The XLV would make sense for a broad-based, US healthcare strategy. IXJ is the global version of that.

Excellent name that offers defensive protection. Strength in health care sector good for investors. Weakness in sector that past 1-2 years is creating buying opportunity. 

Second-half 2024 comps in earnings are compelling.

Energy, tech and healthcare will likely lead sales growth in the second half of 2024.

A basket of names, with some winners and some losers. LLY is the top holding, that's a winner. Also holds JNJ and PFE, which haven't done particularly well. 

He owns NVO, MCK and CAH. He likes those companies where the only serious competition comes from 1 or 2 others, as they can control pricing power. Diabetes and weight loss are definite growth areas. See his Top Picks.

Making RSI new lows versus the market. Avoid this whole neighbourhood for a while.

(Note the short timeframe.)  A defensive pick at the time. Sector did well until September, then started to break down. He sold. When the market's running hot, healthcare doesn't take off. Not now in a seasonally strong period.