The Bullish Case For Health Care Stocks

The Supreme Court’s decision still may be debated on the political front, but it lifts a huge cloud of uncertainty for investors who might have avoided the health care sector while the case was in process. Health care is an anomaly; a sector that has been less risky, overall, than the stock market while also producing above-market returns over time. All long-term investors should be ‘overweight’ in the sector (which currently makes up about 12% of the broad U.S. stock market). And, as you probably know, I believe there are some terrific active managers who can and have outperformed the broad health care indexes, including one of the best — the team at Wellington Management that runs Vanguard Health Care and Hartford HealthCare.