The Chart below compares the daily price structure of the EURO STOXX 50 versus the European Healthcare Sector. After the strong rebound in the main Indices, Healthcare has continuously been accumulated by investors and the sector is now showing a clear outperformance vs. the broad market since the beginning of the year. I do not view this as a positive development for equity markets going forward as more investors do not believe in a sustainable recovery of the economy and hence start to buy a defensive sector like healthcare.
