As we continue making our way through each sector of the S&P 500, we find ourselves at health care. “Through the first quarter of 2020, the health care sector experienced a 10-year growth rate of 177.15%. The S&P 500 during that time grew at a rate of 121.01%.”1 When we break down health care, we’re looking at companies in pharmaceuticals, hospitals, health care equipment, and biotechnology with some of the big-time players in this space being Pfizer, Bristol Myers Squibb, and Johnson & Johnson.
Health care is going to be a mainstay of the portfolio as it makes up almost 15% of the S&P 500, making it the second-largest sector of the index. This sector also has a total market cap of over $4 million in the U.S.2 Whether you’re moving into retirement or have years to go, you’re likely going to have health care as a part of your portfolio because it’s such a large piece of the puzzle.
The biotech sector of health care has received lots of attention due to developments in the COVID-19 vaccine.3 Examples of some stocks experiencing major success recently are Novavax (NVAX) who is looking at gains of 4,000% in the last year and Teladoc (TDOC) who has surged over 150% in the last year.3
With so many recent developments, and many more to come, health care is certainly a sector to keep your eye on. It’s also especially important right now to monitor and protect your assets tied to the stock market – that’s where we come in. We have the tools and knowledge to help you navigate the market and answer any questions you have. Let’s find the right investment strategy for you today!