Today was a crazy days for all stocks markets around the world and in United States. Just a glimpse shows that investors lost 5% of their money in a single day. Many ordinary people lost what they had earned during the last year or so. We are gradually become used to red numbers rather than greens in our portfolio and this is bad for not only the shareholders but all common people. It kind of reminds me of summer 2008 and the implosion of the markets. Many features today were same as those dark days. S&P fell worst since 2008 and the stocks of banks had biggest slump since 2009!
But if you look at the next figure, we see in this red environment some went green and this is the case that will continue for at least couple of months. July and August downturn will continue on most of the stocks, whereas to some extent healthcare stocks are greener than other services.
In facts some investors think for a long run, it’s now time to invest in healthcare stocks. One of the good examples are Merck and Pfizer which according to some some analysts (i.e. Tom Aspray of MoneyShow.com) these are very sweet bites for investors.
Overall, you may have two options if you look into stocks. You can either wait and see what happens in the next couple of weeks (which is a good idea because we may probably see the continuum of downturn) or either buy some undervalued stocks in healthcare. Wish you luck!