XLV ETF

Here are some of the recent references I have made about Biotechnology Sector (IBB) and the potential for a rally. Incidentally, Moderna (MRNA) is so oversold on a monthly timeframe, it should be on your radar.

January was a good month for stocks, but history indicates that February might be challenging for the market. Yahoo Finance's Jared Blikre explains that February usually starts strong, peaks around the middle, and then declines. He also points out some warning signs, such as increasing tariffs and a rise in the volatility index, along with sectors experiencing the most volatility.

I maintain a buy rating on the Health Care sector, highlighting XLV as the second-best performing S&P 500 sector YTD with broad-based gains. Global fund managers have increased allocations to Health Care, signaling renewed optimism and a healthier sector outlook since my Q3 2024 analysis. XLV offers compelling valuation at 16.5x earnings with a PEG ratio of 1.5x, strong dividend growth, and a diversified portfolio leaning towards large-cap value.

The final trades of the day with CNBC's Melissa Lee and the Fast Money traders.

In their last meeting of 2024, the Federal Reserve lowered interest rates by 25 basis points, but the markets reacted negatively when officials indicated there would only be two rate cuts in 2025. Carol Schleif, chief market strategist at BMO Private Wealth, noted that during a press conference, Fed Chair Jerome Powell highlighted the economy's strength, suggesting that inflation is not decreasing as quickly as expected. Looking ahead, Schleif anticipates increased market volatility in early 2025 and advises investors to keep diversified portfolios, particularly in sectors like technology, industrials, biotechnology, and financials.

Designed to provide broad exposure to the Healthcare - Broad segment of the equity market, the Health Care Select Sector SPDR ETF (XLV) is a passively managed exchange traded fund launched on 12/16/1998.

The healthcare sector, including the SPDRs Select Health Care ETF, faces high uncertainty due to political factors and elevated valuations, prompting a downgrade from hold to sell. My investment approach prioritizes low-risk and tactical decisions. In the current market climate, that produces more short-term gains rather than long-term holds, which increasingly lead to whipsaw situations. XLV's technical indicators suggest more downside risk than upside potential, with a 60% chance of the next 10% move being down, not up. That makes it unattractive for now.

The healthcare sector shows resilience and strong earnings growth prospects for Q3 and Q4. The entire US market is expensive, driven by peak company margins. Healthcare sector showed strong returns during US interest rate cut cycles.

Designed to provide broad exposure to the Healthcare - Broad segment of the equity market, the Health Care Select Sector SPDR ETF (XLV) is a passively managed exchange traded fund launched on 12/16/1998.