XLV, XBI: Why We're Bullish On Healthcare (Generally) And Biotech (Specifically)

The Macro Teller
Investing Group Leader

Summary

  • In spite of half of our FMP's four building blocks trading in distress-mode, the portfolio/investment strategy is working just fine.
  • Although stocks are no longer expensive, the economy is looking so fragile, posing a great deal of risk for further decline.
  • This year's lead investment themes remain intact, and we're still very much in a risk-off environment.
  • One of the sectors we remain constructive about is Healthcare as it fits the leading themes as well as offering better value than its defensive peers.
  • Very low exposure to tech/growth stocks is allowing us to have a large exposure to biotech, where healthcare meets tech and growth.
  • Looking for a helping hand in the market? Members of Macro Trading Factory get exclusive ideas and guidance to navigate any climate. Learn More »

Female Research Scientist with Bioengineer Working on a Personal Computer with Screen Showing Virus Analysis Software User Interface. Scientists Developing Vaccine, Drugs and Antibiotics in Laboratory

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[Please note that this article was first published on May 31st for subscribers of Macro Trading Factory ("MTF"), as part of our weekly macro/market review.

As such, whenever there's a reference to time, the pivot date is May 31st, although upon checking the

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This article was written by

The Macro Teller
2.46K Followers

The Macro Teller has over 30 years of investing experience, including 25 as an investment manager. He holds a BA in Accounting and Economics, as well as an MBA in Finance. He is a licensed CPA and had been a licensed investment advisor in various countries, including the US (Series 7 & 66).

He runs the investing group Macro Trading Factory along with his team where they offer two easy to follow portfolios: Funds Macro Portfolio and Rose's Income Garden. Although the two portfolios are very different they share the same goal: Outperforming the market SPY on a risk-adjusted basis. Learn more.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of FUNDS MACRO PORTFOLIO ("FMP") either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

TipRanks: BUY XLV, VHT, IBB, XBI, IHI, ARKG, IXJ, IYH, FHLC, BBH, IHF

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