In October I went all in to healthcare stocks as I believed that the shares were cheap, underowned and there were two large cash deals closing. As the sector ramped in price and popularity I took down my positions to a large extent. I have once again began increasing my exposure to the sector.
It seems that investors are currently in the process of purging their exposure to the sector and bargains are once again emerging. I expect the cash deals in the sector to continue. Sanofi announced that they were looking to make acquisitions.
The biotech sector never really picked up with the rest of healthcare when healthcare rallied. The sector should be the first to bottom. I believe there is value in pharmaceutical shares at current levels. However, because there was a giant love fest in the shares they are susceptible to more downside.