Is It Too Late to Invest in Health Care?

The hottest sector of the past 25 years is richly priced, but the growth opportunities are huge.

Health care stocks, traditionally defensive investments, are proving to be the market’s best all-weather sector. Since the start of the last bear market on October 9, 2007, Standard & Poor’s Health Care index has been by far the best performing of S&P’s ten sectors, climbing 140.3%, or 12.2% annualized. Over that period, health stocks beat the number two sector, consumer discretionary, by an average of 0.7 percentage point per year and topped Standard & Poor’s 500-stock index by an average of 5.9 points per year.

SEE ALSO: Midyear Investing Outlook 2015

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Steven Goldberg
Contributing Columnist, Kiplinger.com
Steve has been writing for Kiplinger's for more than 25 years. As an associate editor and then senior associate editor, he covered mutual funds for Kiplinger's Personal Finance magazine from 1994-2006. He also authored a book, But Which Mutual Funds? In 2006 he joined with Jerry Tweddell, one of his best sources on investing, to form Tweddell Goldberg Investment Management to manage money for individual investors. Steve continues to write a regular column for Kiplinger.com and enjoys hearing investing questions from readers. You can contact Steve at 301.650.6567 or sgoldberg@kiplinger.com.