ipopba / iStock via Getty Images Quick Read FHLC charges just 0.084% in fees but carries 13% concentration in Eli Lilly. The fund gained 17.9% over one year but returned only 154% over ten years versus the S&P 500’s 235%. Enhanced ACA premium tax credits face 87.5% probability of expiring by January 31 2026. Have You read The New Report Shaking Up Retirement Plans? Americans are answering three questions and many are realizing they can retire earlier than expected. Healthcare investing offers ...

Core Insights - Healthcare investing is characterized by defensive traits during market volatility, but regulatory and political risks can lead to abrupt selloffs [1] - Fidelity MSCI Health Care Index ETF (FHLC) offers a low-cost entry point for investors seeking exposure to the healthcare sector without selecting individual stocks [1] Fund Overview - FHLC tracks the MSCI USA IMI Health Care Index, providing exposure to U.S. healthcare companies across various segments including pharmaceuticals, biotechnology, medical devices, and health insurance [2] - The fund has an expense ratio of 0.084% and includes over 80 holdings, focusing on capital appreciation and modest dividend income [2] Concentration Risk - Eli Lilly constitutes over 13% of FHLC's portfolio, linking its performance closely to GLP-1 obesity drugs, which have seen a 46% increase in stock price over the past year [3] - The top five holdings also include UnitedHealth, Johnson & Johnson, Merck, and AbbVie [3] Performance Analysis - FHLC has shown strong short-term performance, gaining 5.3% in the last month and 17.9% over the past year, outperforming the S&P 500 [4] - However, over five years, FHLC returned 42.6%, significantly lagging behind the S&P 500's 84.5% return, with a widening gap over ten years (154% vs. 235%) [4] Sector Challenges - The underperformance of FHLC reflects broader challenges in the healthcare sector, including drug pricing pressures and slower innovation cycles outside oncology and rare diseases [5] - Recent momentum may indicate potential sector rotation, but investing after outperformance carries inherent risks [5] Policy and Income Considerations - Investors face political and regulatory uncertainties, with an 87.5% probability that enhanced ACA premium tax credits will expire by January 2026, impacting health insurers like UnitedHealth [7] - FHLC's yield of 1.33% is considered modest compared to other market alternatives, with dividend growth of approximately 4.6% annually over five years, barely keeping pace with inflation [8] Suitability for Investors - Growth-focused investors seeking maximum capital appreciation may find FHLC unsuitable due to its long-term underperformance [9] - Retirees prioritizing income generation may also find better yield opportunities in other sectors without sacrificing stability [9] Alternative Options - Vanguard Health Care ETF (VHT) is presented as an alternative, with a slightly higher expense ratio of 0.09%, larger asset base of $20.4 billion, and a higher dividend yield of 1.38% [11] - VHT's longer track record since 2004 and superior liquidity may provide additional confidence for long-term investors [11] Tactical Allocation - FHLC may serve as a tactical allocation for investors seeking low-cost exposure to the healthcare sector, but concentration risk and historical underperformance necessitate careful position sizing [12]

The market’s focus this week will be on US economic news. On Friday, Dec nonfarm payrolls are expected to increase by +70,000, and the Dec unemployment rate is expected to slip by -0.1 to 4.5%. Also, Dec average hourly earnings are expected to be up by 0.3% m/m and 3.6% y/y. In addition, Oct housing starts are expected to increase by 1.8% m/m to 1.33 million, and Oct building permits are expected to rise by 1.5% m/m to 1.35 million. Finally, the University of Michigan's Jan consumer sentiment index is expec ...

The 2025 stock market rally was heavily concentrated in mega-cap technology names, but market strategists expect a broader rally in 2026 as earnings growth expands beyond the largest companies. Investors looking to participate in this potential rotation are turning to strategies that provide balanced exposure across all market sectors. The ALPS Equal Sector Weight ETF (EQL) allocates approximately 9% to each of the 11 S&P 500 sectors, according to insights from SS&C ALPS Advisors. It meaningfully overweight ...

Core Insights - Defensive consumer staples stocks are becoming increasingly popular among investors during market volatility, as they provide essential goods regardless of economic conditions [2] - Walmart Inc. has emerged as a strong performer in the defensive sector, with its stock up 23.8%, although it is trading at a premium valuation of approximately 39 times earnings [3] - Costco Wholesale Corp. has seen a decline of 5.5% in its stock price, currently trading at 46 times earnings, which is a discount compared to its historical average [3] - Procter & Gamble is down over 14% due to competition from private label brands, but it is trading at around 21 times earnings, indicating a potentially attractive valuation [4] - The outlook for these defensive stocks varies depending on economic conditions, with analysts divided on whether the U.S. economy will experience growth, a slowdown, or stagnation [4] Company Summaries - Walmart has been the standout performer in the defensive category, but investors are paying a premium for its consistent performance [6] - Costco's recent stock pullback does not necessarily make it a bargain, as it is still priced for strong execution despite a challenging year [6] - Procter & Gamble appears to be reasonably valued, but ongoing pressure from private-label brands may limit its growth potential if the economy slows [6]

Chaay_Tee / iStock via Getty Images Quick Read: With just two full trading days left in 2025, look for some volatility this week. The S&P 500 is heading for its third consecutive year of double-digit returns, barring a market meltdown this week. While the AI/Datacenter trade remains front and center as we head into 2026, look for more sector rotation once again next year. A recent study identified one single habit that doubled Americans’ retirement savings and moved retirement from dream, to reali ...

Sector rotation hasn't been easy this past quarter. But with multiple tries in biotech stocks, we ended up gaining a profit. ...

Market Overview - The Dow is up by 0.5% today, but remains in the red for the week [1] - The NASDAQ has increased by over 1% today, turning positive for the week, while the S&P 500 is up just under 1% [2] - The bond market shows a slight increase in yields, with the 10-year Treasury yield up by 3 basis points today [3] Sector Performance - Technology has been a strong performer this week, with large-cap tech (XLK) up by 2% [4] - Consumer discretionary, led by Tesla and Amazon, is up by 1.3%, while energy has seen a decline of about 3% [5] - Notable stock movements include Nvidia up by 3.74% and Goldman Sachs up by 2% [6] Economic Outlook - Markets are reacting to cooler inflation data and a strong growth backdrop anticipated for 2026 [7] - Investors are focusing on potential rate cuts, earnings, and sector rotation as they prepare for the new year [7] - The Federal Reserve has cut rates by 175 basis points from the highs, indicating a move closer to a neutral rate [13] Fiscal Stimulus and Growth - Significant fiscal stimulus is expected to impact the economy in 2026, including corporate and personal tax changes [16] - The potential for increased capital expenditures (capex) is anticipated due to new corporate stimulus measures [16] AI and Technology Sector - The AI theme remains volatile, with a shift from broad market exposure to more selective stock picking expected in 2026 [18] - The MAG 7 tech stocks have shown mixed performance, with some like Alphabet and Nvidia performing well, while others like Microsoft and Meta have lagged [19] Small Cap Stocks - Small caps have recently rebounded, but there are concerns about sustainability given past performance trends [23] - The current small-cap index composition differs significantly from historical norms, leading to skepticism about future growth [25] Retail Sector Insights - Rivian's stock has been upgraded by Wedbush, citing 2026 as a pivotal year for the company [27] - KB Home reported fourth-quarter earnings that missed estimates, indicating ongoing challenges in the housing market [29] - Nike's second-quarter results reflect a turbulent year for retailers, with uneven performance across the sector [31] Honeywell's Performance - Honeywell's stock has underperformed compared to the broader industrial market, largely due to limited exposure to AI and data center growth [90] - The company is expected to benefit from the spin-off of its aerospace business, which could enhance its market position [92] EV Market Outlook - The EV market is facing headwinds, including the expiration of tax credits, but long-term demand is expected to remain strong [74] - ChargePoint's CEO emphasizes the importance of innovation and product development to drive growth in the EV charging sector [78] - The commercial and fleet markets for EVs are anticipated to grow as businesses seek lower total cost of ownership [86]

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Hello and welcome to market domination. I'm Josh Lipton live from our New York headquarters that just now go to the closing bell and stocks. Well, let's take a look at the popular averages.The Dow, the S&P 500, they're both basically flat right here. Tech heavy NASDAQ in the red. It's down about 4/10en of a percent.Let's welcome in Jared Blickery to bring us to break down all the headlines. Jared, what are you seeing in the markets. >> Bit of red right now. A little bit of green.We'll get into that. But in ...