Is Healthcare a “Value Trap”?

The healthcare sector appears “cheap” on a fundamental basis (Chart 1).   Further downside, however, seems necessary to complete a normal reversion from overbought territory (Chart 2). 

I suspect that politics will bedevil the sector in 2017, suggesting underweight exposure for now.

 

Chart 1. Healthcare appears fundamentally cheap

Chart 2. Healthcare is not technically oversold

By | 2017-01-20T13:55:37+00:00 January 5th, 2017|Categories: Market Strategy Report|0 Comments

About the Author:

Mark Ungewitter is a Senior Vice President & Investment Officer at Charter Trust Company. He was formerly Director of Portfolio Management at Investors Bank and Trust in Boston, Massachusetts. He holds an M.S. from Bentley University and a B.S. from Massachusetts College of Liberal Arts. He is a member of the American Association of Professional Technical Analysts.

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