i want to know more information about heath care stocks are they a good buy?

Answer 1

I would like to thank the previous respondee's answer. He was sure to point out the obvious that some are a good buy and some aren't. Now that we cleared that out of the way, let's look at healthcare from a single unit, the index. Also mind you healthcare is a vast industry including great growth potentials in the biotechnology and nanotechnology arenas. But also has some laggards in the larger areas such as drug stocks in Biogen.

The healthcare index (^NYP) has been in a downtrend since mid-March. With the lackluster markets bringing everything down with it, I see no reason for this downtrend to slow. Give or take though, I don't think we will see any more than about a 3% loss for the index from here. Right now is not the time to buy, in my opinion, but we could see some tremendous value plays in about 2-3 months. And as with any thing in the market, the small-cap growth stocks usually lead the way in a bullish advance. So I would look for small growth plays at that time.

Answer 2

madmoney gave a reasonable answer. A portfolio should contain some health care stocks but should not over indulge. There is always the possibility that what happened to Merck could happen to any of the health care companies. To me that is a big negative.

Answer 3

Some are, and some aren't. Do your homework and check out their financial reports. Better yet, subscribe to IBD (Investors Business Daily) and use their top H/C picks.