Hello there - 2021 was supposed to be a year that pharmaceutical stocks came roaring back. In 2020, the pandemic rightfully put the focus on companies that were developing a therapeutic or vaccine to treat Covid-19. And if you were in the “right” pharmaceutical stocks you may have a good year. But for many traditional pharmaceutical stocks, 2020 was a lost year and 2021 has been better, but not as good as expected. The iShares U.S. Pharmaceuticals ETF (NYSEARCA:IHE) is up only 9.7% in the last 12 months. That’s far below the overall market return even when you include the recent selloff. And to be fair, there are reasons beyond Covid-19 that have held pharmaceutical stocks back. One is the current political climate that makes no secret of its desire to reshape the healthcare industry. And it has the pricing practices of “big pharma” firmly in its crosshairs. However, now is not the time to bail on pharmaceutical stocks. While analysts may have been a year early in their predictions, 2022 looks like an ideal opportunity for investors to rotate back into pharmaceutical stocks. The reason for my optimism is two-fold. First, Covid-19 isn’t going away. But before you put me on one side of the spectrum or another, here’s what I mean. Despite what is being said in Washington D.C., the science is shifting to figuring out ways to manage Covid-19. And whether that comes in the form of booster shots or a pill remains to be seen. But the other reason I’m optimistic is that great progress is being made in the areas of oncology, diabetes, and arthritis to name a few. These diseases aren’t going away either and that means that there is always a market for safe, effective treatments. In this presentation, we’ll look at seven pharmaceutical stocks that investors can buy with expectations for strong growth in 2022. View the “7 Pharmaceutical Stocks to Buy For a Healthy Portfolio in 2022 Matthew Paulson
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