There’s Eli Lilly (LLY), and then there’s everybody else. That’s a simple way to describe the performance of the Club’s health-care holdings so far this year, in what’s been a challenging period for the industry overall. Of the 11 market sectors year to date, health care is the fourth worth-worst performer, falling 4%, followed by consumer staples (down 4.2%), real estate (down 5.8%) and utilities (down 10%). Our standout is unquestionably Eli Lilly, which has soared 50% in 2023 on the promise of its experimental weight-loss and Alzheimer’s drugs, making it the most-valuable health-care company in the world. Lilly’s run really started in last year’s terrible market, soaring more than 30% compared to the S & P 500’s nearly 19.5% plunge in 2022. That’s a nearly two-year return of almost 100%. LLY XLV YTD mountain Eli Lilly’s year-to-date stock performance compared with the XLV, a major ETF that tracks the health-care sector. Lilly’s shadow looms large over the likes of GE Healthcare (GEHC), Humana (HUM) and Danaher (DHR) —three companies whose futures remain bright, but whose stocks have nonetheless been drags on our portfolio this year for reasons that include post-Covid pandemic normalization. Bausch Health (BHC) is a different case. While bouncing more than 30% in 2023, shares of the troubled Canadian pharmaceutical firm had a brutal 2022 — and, for now, remain stuck in the legal mud. Its stock price is about a third of what it was less than two years ago. The health-care sector ‘s underperformance in 2023 can be chalked up to a variety of factors — among them its relative success last year, when it fell less than 4% compared with the broader S & P 500, which had its worst year since 2008. In 2022, as Federal Reserve commenced an aggressive interest-rate-hiking campaign to
… Health care has had a tough year. Where we stand on our 5 stocks in the sector
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