The 2 Best (and 2 Worst) Sectors to Buy Now

2013's hottest and coldest stocks could be in for more of the same

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The 2 Best (and 2 Worst) Sectors to Buy Now

Second-Best Sector: Healthcare

healthcare money1 e1311255870213 The 2 Best (and 2 Worst) Sectors to Buy NowYTD Performance: +31%

With more than 31% gains year-to-date for this Russell 3000 sector, healthcare comes in as the second-best sector so far this year.

Thanks to both stable large caps like Johnson & Johnson (JNJ) as well as high-flying biotech Vanda Pharmaceuticals (VNDA), healthcare stocks have managed to nearly double the returns of the broader stock market as measured by the 15% gains in the broader S&P 500 and 16% in the Dow Jones year-to-date.

Healthcare has many appealing factors for investors. It’s a recession-proof sector, since people still get sick and the demographic push of aging baby boomers is creating many more “customers” for the industry.

Ways to play this broader sector include exchange-traded funds like the iShares Dow Jones US Healthcare (IYH) and iShares Nasdaq Biotechnology Index Fund (IBB).

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