Healthcare stocks historically struggle when bond yields rise. The chart below illustrates the so-called “Bond yield tantrums” witnessed post-COVID, although the recent aggressive leg lower was also fuelled by Ozempic. If we are correct about bond yields into 2024, the Healthcare Sector should regain some of its “Mojo”.
- We currently hold ResMed (RMD) and Ramsay Healthcare (RHC) in our Active Growth Portfolio & we recently bought US Healthcare provider HCA Healthcare (HCA US) in the International Equities Portfolio.
At this stage of the cycle, we are considering increasing our healthcare exposure, which is currently at 10% around market weight.
MM are cautiously bullish about healthcare stocks
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