Published Tue, 01 May 2018 08:15:00 -0400 on Seeking Alpha
This research report has been produced together with Seeking Alpha author Julian Lin.
The healthcare & biotech sectors can play a role in every balanced portfolio, not only because they provide diversity, but also because of their fast growth, which is generally not dependent on the state of the economy. Companies in this sector are able to increase their revenues even during uncertain times, such as a recession. These are deemed as non-cyclical stocks, so they are not as much affected during economic downturns.
The Biotech Investment Thesis The Nasdaq Biotechnology Index has outperformed the broader market and healthcare indexes by a wide margin since 2002. The performance was almost double that of the S&P 500 index:
This is due to the increasing boom in the development and discovery of new drugs, which improve the quality of life and/or save lives.
Why the recent underperformance? The recent underperformance can be attributable to the growing negative sentiment toward the biotech and pharmaceutical sectors due to extended concerns about pressures on drug prices.
The biotech sector, and the pharma sector in general, are sectors that constitute a kind of crown jewel in the United States economy. The U.S. is the largest market for biopharmaceuticals, accounting for around a third of the global market, and is the world leader in biopharmaceutical research and development. U.S. firms conduct over half the world's research and development (R&D)... Read more
|Stock name||Last trade||P/E||Earnings/Share||Dividend/Share||Dividend yield|
|H&Q HEALTHCARE INVESTORS||19.46||0.0||0.00||1.82||9.45|
Older articles featuring H&q Healthcare Investors (HQH):Pace Of Dividend Cuts Accelerates In February 2019
High Yield Strategy Fails Again
Dividends By The Numbers For May 2018
High-Yield Investing: Strategy For 2017, Risks And Sectors Set To Outperform
Retirement Income: High-Yield, Sustainable Capital CEF Portfolio Continues To Shine At One Year
Are CEF Investors Getting Suckered Into High Yields?
Best 'High Yield Sectors' For Income And Growth - To Consider Today
An In-Depth Look At The Extended Valuation Of Defensive And Income-Yielding Equity Sectors
Retirement Security Amid Global Crises: The Problem Of Cutting Risk And Maintaining Yield
Stocks Trading Ex-Dividend on 5/20/2016