Industry observers argue that medical technology companies can tap into increased healthcare spending among emerging economies while the U.S. market has matured and could experience slower growth. Looking ahead, in the years through 2024, spending growth is projected to average 5.8% and peak at 6.3% in 2020.
“Investors should re-enter health-care stocks with caution, says Phil Streible, senior market strategist at RJO Futures, as the sector remains vulnerable to market swings,” according to CNBC. “Streible views Tuesday’s low as a key level that the sector should prove resistant to dip below. The Health Care ETF fell to an intraday low of $89.22 on Tuesday before easing off the bottom to end at $89.49. The ETF was down 2.1 percent on Tuesday in its worst one-day loss since October 2016.”
ETF traders who are betting big on the biotechnology sector rebound have also utilized leveraged long options including the Direxion Daily S&P Biotech Bull Shares (NYSEArca: LABU), which takes the 3x or 300% daily performance of the S&P Biotechnology Select Industry Index.
For more information on the healthcare sector, visit our healthcare category.