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River of Money Willl flow From Biotech To These Hot Sectors: Strategist

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  • An interesting comment from the linked article.."many investors have been pushed into equities, and in the process went for the sector they viewed as safest — health care — though in buying the sector, via funds and ETFs, were also at times getting exposed to biotech stocks."

    Over the last 10 years or so, I have also viewed HC as a largely defensive position and have benefited greatly from this stance. Perhaps it's time to re-think that.

    Or...maybe not.
  • Over the last 10 years or so, I have also viewed HC as a largely defensive position and have benefited greatly from this stance. Perhaps it's time to re-think that.

    PressmUp,

    I think it depends. A health care fund like VGHCX holds largely defensive positions because of its significant holdings in big pharma. Due to its large AUM, it can't take meaningful (sizable) positions in biotech stocks. This is why I like this fund in up and down markets.

    Mona
  • TedTed
    edited March 2014
    @Mona: Good point, FBTCX was down -(.11)%, while PRHSX was up +.10% today.
  • edited March 2014
    PressmUp,

    I think it depends. A health care fund like VGHCX holds largely defensive positions because of its significant holdings in big pharma. Due to its large AUM, it can't take meaningful (sizable) positions in biotech stocks. This is why I like this fund in up and down markets.

    Mona

    Yes Mona...as it turns out, VGHCX is precisely what I own and have viewed as defensive. I do have some exposure to the high(er) flyers via POAGX. And ultimately, I have exposure to many of the above, plus some that most folks have never heard of due to my day-job in the health sciences industry.

    Press
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