A few sectors we continue to find attractive in terms of value and
opportunity over the next few years are the pharma and healthcare space.
At some point likely sooner, rather than later, these sectors will get a
substantial lift. However, this is precisely the type of thing that can
drive contrarian investors absolutely crazy in the interim.
We have what many might consider to be a bit of an odd analysis when it comes to the space. Basically, a fund manager asked us what we thought about Gilead Sciences, Inc. (GILD) several months ago. We told him the stock still had much more downside ahead, and that when it hit a certain level, it could coincide with a potential long-term reversal in the space.
Why? Because Gilead is one of those hundred pound gorillas that tends to help or hurt a specific sector. Well, provided below is a long-term monthly chart of the stock, and we’ve been saying for a long time – pay attention to a break below $60 per share. When that happens, not only will Gilead be another excellent long-term buy, so will the entire pharma and healthcare space.
That’s very leading in nature, and although we haven’t mentioned it here, now’s probably the time for everyone to put GILD on their watch list, and look for that break below $60, because if and when we can get it, we’re probably going to lean on the space a heck of a lot more than we have in recent years.
Even biotech is starting to look pretty attractive again, evidenced in this monthly chart of BIB below, the primary ETF tracking the entire biotech space. It too could be trying to develop a bottom right now. Sell side volumes appear to be drying up, which you can see here, and considering there’s got to be other sectors to eventually take these markets higher, maybe it’s going to be all of the above.
Still a little too soon to tell, but that’s what we do here – provide you with as much accurate leading analysis as we possibly can. So keep the above in the back of your mind – as we look to try and take advantage of some sectors Wall Street has probably been working to accumulate for a while now.
It’s a classic scenario – they tell you they hate something until they’re done buying it all up. Then, they’ll come up with upgrade after upgrade. The same thing is going to happen with energy stocks at some point too. Give it some time, every sector eventually comes roaring back.
We have what many might consider to be a bit of an odd analysis when it comes to the space. Basically, a fund manager asked us what we thought about Gilead Sciences, Inc. (GILD) several months ago. We told him the stock still had much more downside ahead, and that when it hit a certain level, it could coincide with a potential long-term reversal in the space.
Why? Because Gilead is one of those hundred pound gorillas that tends to help or hurt a specific sector. Well, provided below is a long-term monthly chart of the stock, and we’ve been saying for a long time – pay attention to a break below $60 per share. When that happens, not only will Gilead be another excellent long-term buy, so will the entire pharma and healthcare space.
That’s very leading in nature, and although we haven’t mentioned it here, now’s probably the time for everyone to put GILD on their watch list, and look for that break below $60, because if and when we can get it, we’re probably going to lean on the space a heck of a lot more than we have in recent years.
Even biotech is starting to look pretty attractive again, evidenced in this monthly chart of BIB below, the primary ETF tracking the entire biotech space. It too could be trying to develop a bottom right now. Sell side volumes appear to be drying up, which you can see here, and considering there’s got to be other sectors to eventually take these markets higher, maybe it’s going to be all of the above.
Still a little too soon to tell, but that’s what we do here – provide you with as much accurate leading analysis as we possibly can. So keep the above in the back of your mind – as we look to try and take advantage of some sectors Wall Street has probably been working to accumulate for a while now.
It’s a classic scenario – they tell you they hate something until they’re done buying it all up. Then, they’ll come up with upgrade after upgrade. The same thing is going to happen with energy stocks at some point too. Give it some time, every sector eventually comes roaring back.
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