Research

Periodically, like in our year-ahead outlook this year, we think it is prudent to be cautious about deploying new capital into the US equity market.

The S&P500 sold off 10% from February 19th, 2025 through last Thursday. This represents the 18th biggest draw down of the S&P500 since 1986.

The Healthcare Sector is up 6.4% year-to-date, compared to the S&P500 that is down 4.5%. Healthcare remains our favorite sector, as we don’t think the recent outperformance is close to fully incorporating the long-term potential.

After the market sells-off, like it has here over the last several weeks, there is a phrase that nearly always gets trotted out by the Sell-Side Institutional community, “The Pain Trade Is Higher.”

We entered 2025 the most cautious on risk taking we have been in several years, worried about several issues: