In Sickness And In Health

The rotation is on. Positioning is not.

Health Care was the best-performing sector yesterday despite the lack of any obvious catalyst. Instead, a sharp Momentum unwind triggered a rotation out of YTD winners like Tech and into laggards such as Pharma and MedTech.

Health Care also enjoyed a strong June, helped by broader market rotation and easing medical-cost pressures. Even so, the sector still lagged the S&P 500 by 3.5% in H1 after a dismal first five months. Was June merely a temporary rebound, or the beginning of a more durable recovery?