U.S. healthcare stocks had a strong 2018, rising 4.7 percent overall, and experts say they should continue to do well in the new year.
According to a new report from Reuters, healthcare and utilities were the only two S&P 500 sectors to post positive returns in 2018. The healthcare sector’s “reasonable valuations, strong balance sheets and dividend payments among many companies” are listed in the report as reasons for its success. In addition, healthcare earnings are “less susceptible to economic cycles than other businesses.”
The report noted that the beginning of 2019 has been slow for healthcare stocks, and that it’s possible the 2020 election could eventually have a negative impact on the sector’s performance, but experts still expect it to perform well throughout the year.
Click below for the full story from Reuters.