Hey @slick I've been scratching my head about a lot of things...

Hey @slick I've been scratching my head about a lot of things lately but the healthcare sector getting a bashing is one of my questions.

A theory that has come to mind was the possible movement of money invested in stocks from one industry to another as investors and traders anticipate the next stage of the economic cycle. Investors looking for stocks in other sectors with strong earnings and a defensive position in the market as investors become more concerned with the global picture. Sectors such as Materials and Energy have shown strength as Healthcare has been punished, not only through recent global speculation but also an understandable company future with a pre existing earnings. I don't have a lot of experience to show although I feel as though Healthcare stocks (Biotech's in particular) are more speculative, with higher volatility and little to no previous earnings due to the familiar Biotech business model of 'fund it, develop it, make it, sell it' concept.

Below is XEJ (energy) and XMJ (materials) in comparison to XHJ (healthcare).


I am keen to hear all opinions.

Cheers, Judo
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