When healthcare was healthy

Rarely has an entire sector been this out of favor

The S&P 500 healthcare sector is now underperforming the broader index by the largest margin in nearly 25 years. Its weight in the index has fallen to a multi-decade low, investor positioning is in the 8th percentile, and valuations are scraping the bottom — with a forward P/E around 16.5. When sentiment is this depressed, it often doesn’t take much to spark a turnaround. Could healthcare be the market’s next big comeback story?