Please stay tuned for important disclosure information at the conclusion of this episode.

Welcome to Investing Insights. I'm your host, Sarah Hanson, and I'm filling in for Ivana Hampton today.

As many investors might know, we're in the middle of a pretty dramatic rotation in the

stock market. The big tech companies that drove the market higher for the better part of two

years are struggling and other sectors are pulling ahead. Healthcare stocks are one of those

rotation stories. After lagging the market by a pretty wide margin in 2024, healthcare is the best performing sector so far this year.

That's as of Wednesday, March 19th.

The healthcare umbrella covers a wide range of stocks, from drug makers like Eli Lilly and Johnson and Johnson,

to insurers like United Health, to research in biotechnology firms like Thermo Fisher and Vertex.

We have Karen Anderson, Morningstar's Director of Healthcare Equity Research, here to help us make

sense of the forces that are shaping the healthcare landscape, like those popular

GLP1 drugs and what they might mean for investors.

So Karen, thank you so much for being here.

Yeah, great to be here. Thanks.

And I'm excited to talk healthcare stocks.

So one of the first things I noticed this year was that when the whole market was falling a couple weeks ago,

healthcare stocks were one of the only sectors that held on.

And, you know, as of today, which is Wednesday,

March 19th, they're still the best performing sector so far this year at a time when a lot of

other categories have really underperformed. So what's going on? Like, why have they been so

resilient? Yeah, sure. Yeah. I mean, part of it, I think, is coming off of a really rough December.

Healthcare stocks had a really hard time.

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