TB:" pharma invest-o-rama "
DRG.X - Pharmaceuticals Index
BTK.X - BioTechnology Index
>I think my favorite health care stock is WLA. TM and I discussed it long and hard at it's most recent retreat to $61. Next time, if there is one, I won't hesitate. My least favorite is JNJ, but the folks that be certainly seem to have a fascination with it...
...you know, Dude, personally I believe in lotsa diversification within this sector; hell - buy them all, reduce the losers' weights and increase the winners' weights (or, leverage). If ever there was a sector where earnest F/A and simple T/A and classical, active portfolio management works well (over time) it is this sector.
I hold MRK PFE SGP AMGN BGEN in CORE since YTD. I'd like to add JNJ BMY WLA and at least two more stox, mebbe four, either from the BTK.X - BioTech sector or, from the medical equipment sector; ie., why fire a rifle from a bouncing stage-coach, when a good old 10- or 12-gauge shotgun works, Dude!
Buying (a big mix of) these stox on apparent dips is boring, but it does work for investors. Personally, I would not weight more than 15~20% of my total CORE with this sector, but I like having them there - has worked well for me in the past, especially with a 60:40 = DRG : BTK+MedEquip structure.
Indeed, I feel that diversification is so useful within this sector that I would recommend buying sector funds, or even DRG.X + BTK.X index options, on apparent dips, to investors.
Comparison of FSPHX - Fidelity Select HealthCare and FBIOX - Fidelity Select BioTech top-10 holdings:
DRG_____BTK
LLY_____AMGN
MRK_____BGEN
WLA_____DNA
SGP_____SEPR
JNJ_____MRK
MDT_____MEDI
BMY_____GENZ
PFE_____SGP
ABT_____FRX
AMGN____CHIR
...right now, short-term I expect some profit-taking in BTK.X - BioTech. For DRG.X - Pharmas (at ~375 today) I see far-target as ~400, near-target as 380 +/-5; with ("dips") near-support at ~365 and far-supports at ~350, then ~335; base support is ~305 area; known potential peak is ~420.
-Steve |
