VHT - Assessing The Healthcare Selloff
By Marshall Gordon and Nicholas Wu, PhD
Healthcare stocks normally react to political rhetoric, but the speed and magnitude of the recent correction in the sector have been surprising. Despite bipartisan clamoring for broad changes to the healthcare system and the Trump administration's push to lower prescription drug prices, we have not seen a material change in near-term fundamentals. The whole move has been sentiment driven, resulting in changes in the long-term or terminal value of companies across healthcare that could present selective opportunities.
The broad healthcare sector has underperformed the S&P 500 by about