Friday, January 23, 2009

Sector Update: Health care

Yesterday I published my dissection of the sectors that will recover out of the bear market (if there is ever a recovery):   health care and staples are the predicted winners...

...and lo and behold, we have a deal with PFE buying WYE and calls on CNBC that this could be the initial move in a wave of consolidation and bull move in the pharma sector.

One other note on the SPDR ETF on Healthcare, XLV: this is basically a pharma ETF and contains no significant exposure to medical equipment or HMO's.  Stocks like JNJ are more diversified and acts like a healthcare mutual fund unto itself. 

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