Update-2 June 22…Market ends trading day flattish with usual choppiness focused on macro after Powell speaks. Recession fears dominate with energy stocks down again. Bright spot is healthcare sector led by large caps with nibbling in beaten- up small caps. Like price action in spec small caps biotechs.
- XLV up 1.39%, XBI up 2.51% to $71 handle a nice 5 day uptrend IBB up 1.23% up 6.6% over 5 days.
- In an economic downturn healthcare would be a defensive allocation assuming no pricing legislation .
- Large cap >1.5% winners: ABBV GILD LLY MRNA PFE RHHBY UNH
Update-1 11a EDT June 22….Stealth rally in healthcare and biotech stocks for the second day.IBB up 1.9%. XLV up 1.48%.Most small cap speculative stocks up with XBI up 2.9% to $72. Top movers :AGEN, CCXI, CYRX, MRTX, MDGL, MRNA, VCYT. UNH up another 1.5%.
CRSP down another 8%. Thank you Seeking Alpha for flagging the stock yesterday causing me to sell.
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Bear Market Rally Lifts HealthCare Stocks
Use the values below to gauge your portfolio and Healthcare sector performance for 2022. They represent what we hope will be near the 2022 bottom given that the valuations are not too rich. The XLV was up 2.26% to $122.60 near last week’s bottom of $120. Last week was one of the worst in 2022. If your stock was not up today, expect the worse because all major indices were up over 2%.
A case in point was CRISPR Therapeutics (CRSP) down 7.61% during a Company Meeting that must have disappointed investors.It’s not clear what happened or what news came out?
Many of our favorite small cap stocks rallied today and here are some that look good for the long term: EVH, CCXI, CYRX, MDGL, MRNA, MRTX, VCYT. But clearly we are in a biotech bear market with both diagnostics and vaccine revenues stalled. If gene editing stocks cannot offer breakthrough clinical news then stick with large cap biopharma. So we bought some pricey Eli Lilly (LLY) today because of their new diabetes drugs.
Also look at United Health (UNH) up 6.25% to $489 today and way off 2022 highs of $553.
| Model | |||||||||||
| PORTFOLIO | |||||||||||
| 2020 | 2020 | 2020 | 2021 | 2022 | |||||||
| Stock/ETF | Ticker | Price | Wgt | Price | Price | 1 year | Price | YTD | 30d | ||
| 10/25 | % | 12/31 | % Perf | 12/31/21 | % Perf | 6/19/22 | %Perf |
%Perf
|
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| iShares NAZ Bio | IBB | 136 | 25 | 151.5 | 25.7 | 152.62 | -31.12 | 109.56 | -28.21 | -5.97 | |
| iShares Russell 2k | IWM | 163 | 10 | 196.4 | 18.3 | 222.45 | -27.33 | 165.18 | -25.75 | -9.56 | |
| Merck* | MRK | 80 | 5 | 81.77 | -10 | 76.64 | 9.57 | 84.62 | 10.41 | -9 | |
| United Health | UNH | 330 | 15 | 350.7 | 27.19 | 502 | 13.77 | 452 | -9.97 | -8.22 | |
| SPDR S&P Bio | XBI | 117 | 5 | 140.8 | 48 | 111.96 | -49.69 | 67.61 | -39.61 | -5.31 | |
| Healthcare SPDR | XLV | 108 | 25 | 113.4 | 14.71 | 140.89 | -4.22 | 119.89 | -13.07 | -8.71 | |
| T.Rowe Hlth Sci | PRHSX | n/a | 5 | 99.65 | n/a | 104 | -25 | 79.5 | -23.62 | -7.56 | |
| iShares U.S MedT | IHI | 50 | 10 | 54.83 | 65.85 | -18.83 | 47.75 | -27.49 | -11.92 | ||
| Tracking Comp | COMP | ||||||||||
| ARK Genomic | ARKG | 93.26 | 61.24 | -66.36 | 29.32 | -52.12 | -10.56 | ||||
| FIDO Biotech | FBIOX | 25.18 | 19.35 | -40 | 13.34 | -31 | (4,17) | ||||
| FIDO MEDtech | FSMEX | 76.15 | 83.18 | (29,83) | 54.31 | -34.71 | -8.77 | ||||
| DOW | DIA | 310 | 363.32 | -11.79 | 298.72 | -17.78 | -8.66 | ||||
| S&P 500 | SPY | 379 | 475 | -13.3 | 365.86 | -23 | -10.4 | ||||
| NASDAQ-100 | QQQ | 315 | 397.85 | -22.46 | 274.69 | -30.96 | -10.28 | ||||
| Top Biopharmas | |||||||||||
| Abbvie | ABBV | 20.35 | 138.28 | 2.13 | -10.66 | ||||||
| Bristol Myers Sq | BMY | 10.48 | 73.77 | 18.32 | -5.69 | ||||||
| Eli Lilly | LLY | 30.9 | 290.9 | 5.31 | -3.48 | ||||||
| Merck | MRK | 9.57 | 84.62 | 10.41 | -9 | ||||||
| Regeneron | REGN | 8.38 | 580.95 | -8 | -13 | ||||||
| Vertex | VRTX | 39.67 | 263.09 | 19.8 | 0.48 | ||||||