Healthcare stocks have been on a tear this year, but history shows their rally may be petering out.
With its 11.1% gain this year, the sector is the only group in the S&P 500 to boast double-digit gains in 2018, outperforming other winners like utilities and consumer discretionary.
Its weighting in the S&P 500 has reached a hefty 15.6%, a size that has only been seen during six other periods since 1979 — and that’s a reason to grow cautious on the group, according to DataTrek Research.
