Opinions The Monthly Gems by Allan Tong
Health Care Select Sector SPDR FundXLVTOP PICKAug 03, 2026
Stock price when the opinion was issued
As of Aug 05, 2026. Market Open.
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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.
He's overweight healthcare and within that is overweight biotech and pharma. There's a reversion to the mean after a brutal election year, but that's always the case. Relief comes when presidential policies are not as dire as expected. These stock have tremendous valuations and pay good dividends and there's growth with aging demographics.
Jim Lebenthal
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.
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.
Brooke ThackrayBought this to be defensive, however, health care wasn't that defensive this year. Now, HC is past seasonality and he doesn't like it.
Brooke Thackray
This is another U.S. ETF that's benefiting from the current rotation out of AI. XLV has outperformed the S&P 12% vs. 3.6% in the past three months and has returned 26.8% in the past year. Healthcare is a safe, steady play at a 0.51 beta. XLV pays only a 1.6% dividend costs but costs only eight basis points.