March 30, 2020
The first quarter of 2020 has been challenging for investors. Impacts of the pandemic are being felt around the world and volatility has taken hold of the markets, with the S&P 500® Index down more than 30% year to date.1
As investors grapple with positioning their portfolios for the future, it may be helpful to review how healthcare has behaved during negative (bear market) and positive (bull market) quarters over the past 20 years.
Healthcare equities have protected to the downside during negative periods, falling roughly 4% on average, compared with a more than 7% decline for the S&P 500 Index.
20 years of bull and bear quarters
Performance period: December 31, 1999–December 31, 2019
Past performance may not be a reliable guide to future performance and does not guarantee future results.
What this means for investors:
As investors become increasingly concerned about further market corrections, it may be a good time to consider more direct exposure to healthcare equities. We believe the asset class should continue to benefit from its defensive characteristics, powerful secular trends, and transformative technological breakthroughs.
1 As of March 24, 2020.