So what’s driving this outperformance? Well for one, there has been significant M&A activity in the space, as consolidation seems to be the name of the game.
These data also imply that the market believes the healthcare sector will continue to be prosperous. Flows into the space indicate confidence, while recent growth in biotechnology demonstrated that some past wounds have healed. While we wait to see if these valuations are long on substance, we must ask: Are we all really that sick?
This article was written by Chris Bennett, senior analyst, index investment strategy, S&P Dow Jones Indices.
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