A rally keeping U.S. healthcare stocks on track to have their best quarter in more than five years doesn't look like it's yielding ahead of this year's midterm elections, according to Bloomberg.
While power changes in Washington could be ahead, healthcare is in "an outstanding position." Stocks should continue to be lifted by strong breadth and momentum, Evercore ISI's head of technical analysis Rich Ross wrote in a research note obtained by Bloomberg. Healthcare stocks have gained 14 percent in 2018, hitting all-time highs across several subsectors.
Recently, investors have favored healthcare stocks while geopolitical tensions rise and technology stocks remain volatile. Investors are also warming to the pharmaceutical sector as some drugmakers have agreed to reduce costs for certain drugs, even as the threat of government control on drug prices persists.
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