Why the 'best hedge' against the AI rally losing steam in 2025 is healthcare: Morning Brief
Published On Feb 12, 2025, 6:00 AM
The article discusses the healthcare sector as a potential hedge against a decline in tech stocks, particularly as the AI-driven tech rally shows signs of losing steam by 2025. Analysts believe that healthcare, having recently started the year well, is attracting attention as a resilient alternative. Despite historically underwhelming performance compared to the tech sector, recent insights suggest a possible rebound. Key factors contributing to healthcare's appeal include the cooling negative sentiment towards GLP-1 drugs which had initially impacted medical equipment stocks. This recovery paves the way for potential investments in biotech, medical equipment, and healthcare providers.
Stock Forecasts
XLV
Positive
The general sentiment is shifting towards healthcare as a viable investment during potential downturns in technology stocks. Analysts predict an overall positive trend in healthcare due to recent performances and the cooling off of negative sentiment related to specific risks (like GLP-1 drugs).
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