The healthcare space was almost out of favor in the 1st quarter following Democratic Presidential Candidate, Hillary Clinton’s allegation on “price gouging.” The massive decrease in Valeant Pharmaceuticals International, Inc.’s (VRX) shares also had an adverse affect on biotech stocks, eventually dragging the healthcare sector down. Healthcare mutual funds were not spared as the category turned out to be the worst performer in the 1st quarter. Foremost funds from the healthcare space failed to end in positive territory during the period.
Despite this hiccup, investors should not be demoralized as the long term bodes well for such funds. The healthcare sector is poised to gain from an ageing population both at home and abroad. And with an increase in mergers, and innovative product pipelines and approvals, it is merely a matter of time before the sector bounces back.
Not to forget that biotech stocks have already rebounded in the past few days after being torn apart in the first 3 months of the year. Banking on this optimism, it will be prudent to contribute in healthcare funds that have offered solid returns over a long period of time and also boast powerful fundamentals.
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