Is healthcare that bad?

[David411]

cramer's been ragging a lot on healthcare lately, I own QSII and I think it's gonna do well. My brother works in healthcare and he seems to think differently than cramer.

[Will]

don't know much about QSII, but Healthcare is way oversold right now

[MoMoney4Me]

I agree with Will.
Once everyone gets a feel about what to do with the new medicare bill and it all shakes out, you'll begin to see a rise in the healthcare sector once more.
Buying into lagging sectors ahead of their rise is a decent strategy. Another that may well see solid increases in the second half of the year is Financials. As the Fed loosens it's policy of rate increases, the banks will benefit.
Sectors that have recently seen big runups will see an exodus into the value plays, particularly large caps that have lagged the market going on 5 years now.

As p/e ratios begin to contract on small and midcaps that have had their heyday, large cap solid companies will be the place to be again.

You won't be getting the huge gains you might have been accustomed too, but 12% gains on average in a slowing economy will look good, in contrast to huge selloffs like we've seen this week.

Sector rotation is good, there's something always on sell.
Yeh , you'll still be able to cull a few rockets in pennies and small caps from the masses but with the same risk you're seeing now. Up 50% or so in a few weeks, then "BAM", back down to where you started.

I think maybe after this week, I'm just a bit fatigued at spending endless hours of research, squeezing out gains over a period of time, then losing most of it back in just a few days.

Thinking value plays for the long haul that will beat the index averages are less work and the place to be putting my money for the 2nd half of the year. You'll find great selections from Morningstar's 5 star rated stocks, they tend to recommend value plays over momentum or stocks reaching their new highs.