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||18.84||0.0||0.00||1.82||9.71|
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