Conventional wisdom suggests that the health-care sector is a boring, defensive place to park your investment dollar. After all, health-care spending is relatively non-cyclical and benefits from a high degree of inelastic demand (i.e., price increases have a small impact on consumption). While that might be true at a high level, competition for that spending is extremely fierce, and regulatory risks create incredible uncertainty and volatility for investors in many individual health-care stocks. The industry stayed true to its defensive reputation in today's down market, as the aggregate industry rose despite a broader market sell-off. Let's look at a few companies that led the pack higher.
After a collapse of epic proportions yesterday, Peregrine Pharmaceuticals
Also flying high, albeit at a much lower altitude, was Antares Pharma
Lastly, shares of Neogen
Foolish bottom line
Despite its defensive label, many individual stocks in the health-care industry are subject to the same daily gyrations you experienced in other industries. Of course, the key to investing successfully is maintaining a long-term horizon. In this special free report on the topic, we outline some of the key savings habits you need to build long-term wealth. We also share three stocks to help build a smarter retirement portfolio. Click here now to claim a free copy.