Due to their defensive characteristics, healthcare stocks are an exception in an uncertain economic environment. Hence, despite the multiple negative macro factors, such as high inflation, rising interest rates, and slowing economic growth, last year was favorable toward healthcare stocks. Over the past three months, the S&P 500 Health Care Sector index has gained 10.5%.
An aging population and rapid innovation in pharmaceuticals and treatments to increase longevity should bolster the healthcare sector’s growth prospects. According to Verified Market Research, the global healthcare market is expected to reach $665.37 billion by 2028.
