Health-care stock funds have shown strength in downturns

NEW YORK When swings in the stock market cause anxiety to spike, like it is now, many investors aim to get healthy.

Stocks dont come with guarantees, but health-care stocks have held up better than others during past downturns. People get sick regardless of the economys strength, after all, and an aging population around the world means more demand for prescription drugs and hospital care.

That has brought more attention to health-care stock funds, as worries about a weak global economy have sent stocks sinking in recent weeks. Health-care stock funds returned an average of 19.1 percent annually over the last five years, more than any of the other 101 fund categories tracked by Morningstar.

The strong returns are luring more dollars: Investors put more into health-care funds last month than they pulled out, contrary to the trend for stock funds in general.

Demand for health care tends to spike once a person gets past the age of 70. A similar leap occurs when someone enters the middle class. Both trends are occurring around the world.

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Health-care stock funds have shown strength in downturns

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