- Healthcare stocks down but have outperformed significantly; that’s likely to continue

- DVA share price at healthy discount to long-term P/E; stock down 15% from high

- Strong international growth should continue; Berkshire Hathaway has a 31% stake

The video in this report is only accessible to members

Everyone is worried about the rapid spread of the coronavirus and how bad it might get, and rightly so. While the world’s attention is on that, it might pay to prospect elsewhere.

With the uncertainty that comes with a bear market and the concerns about another potential leg down, my thoughts have run to healthcare. Nothing original here, as the market has naturally already privileged this group. From the Feb. 19 stock market high thru March 31, the broad market is off 24% and healthcare stocks are down 15%.

Before you call me too late, I’ll note that back in late January in these pages I noted that a neglected healthcare sector looked attractive, as it had underperformed for many years, and because it would be good ballast for a market that was hitting high after high and might pause. (Healthcare Looks Inexpensive; Some Healthy ETFs to Play, Signal from Noise, Jan. 29.)

It’s been much worse than a pause, unfortunately, but healthcare has been a place to hide with relatively lowe...
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