Sector spotlight: Healthcare

In 2013, healthcare stocks outpaced all sectors within major indices, including small-cap equities. Chris Adams and Kent Madden, of the Delaware Investments Core Equity team and Small-Cap Value Equity team, respectively, explain which subsectors led the way.

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I hope guys want sex over that performed strongly in 2013 in not year the healthcare sector in the Russell 2000 was up over 50% although I would draw attention to the fact but not all parts of Health Care performed at the same strength for example by technology was up over 60% while nursing home facilities were up below the index is a hole with only 25% also so although Healthcare is being an excellent secta to invest that you still have to be careful to invest in the right sub sex's on companies about actually perform well that was driven by a nice pipeline of new drugs are strong and the environment strong IPO activity and that grew up early I'll perform nicely biotech valuations have gotten pretty Frosty and we have seen a correction and some of the biotech names over the past month or so and we do think that valuation to look high and weed don't anticipate a participating in any biotech showers in the near-term we have bought them occasionally historically but we really need to see valuations attractive before we buy them a lot of headlines concerning the Affordable Care Act but I would caution people to just focus on the fact that that is a headline issue the reality is that although the changes brought about by ACA are significant effect relatively small portion of the population in the United States the two simple reasons thusly we have an aging population unfortunately the one thing we know about people as they just they got sick up so the demand for healthcare or the need for healthcare I will an extra clear eyes for several years of the same time but people need more a healthcare the healthcare industry is bringing many new therapies to Market by the truck there is medical devices so this flight Healthcare is increasing so that's a win-win that it's a growth-oriented industry and Eiffel we see many exciting investment opportunities

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